2011 Federal Budget Take 2 - Important small business victories are reintroduced

For more details

2011 Budget Backgrounder and Highlights

Of further interest:

• Business Tips: Are you eligible for the EI hiring credit?
• News Release: B+ Budget redux: Small business priorities addressed in federal budget
• News Release: B+ Budget for Small Business: CFIB

The second 2011 Federal Budget was announced on June 6^th and much of it was a carbon copy of the previous Federal budget from March 22^nd. We are pleased to see all the key announcements for small business from the previous budget re-introduced. Below is a summary of those announcements and our video reaction to the March 22^nd Budget (which remains current).

Some of the highlights of the 2011 Federal Budget were:

EI Hiring tax credit: CFIB was extremely pleased to see its top budget priority - an EI Hiring Credit for Small Business - announced in the 2011 budget. As this budget forecasts rising EI premiums in each of the next three years, this credit will be a major help to small firms in growing their workforce. This credit will exempt some small employers from having to pay premiums on an increase in their payroll in 2011 over 2010 levels. As an example, this credit will allow a firm with less than $413,000 in payroll to create one new $40,000 per year job without paying any EI on that new position.

Red Tape: As a member of the government's Red Tape Reduction Commission, CFIB has been focused on reducing unnecessary rules and paperwork and there were several measures in this budget that respond to this challenge. CFIB is delighted the budget makes an ongoing commitment to continue BizPaL - which provides firms with one-window access to permits, licences and fees at all three levels of government.

Canada Revenue Agency (CRA): Improving Taxpayers Fairness: Requiring CRA to provide written interpretation on tax inquiries when requested through CRA's online window will bring a significant improvement in transparency and accountability. In addition, the measures to review penalty levels for information returns will be welcomed by firms struggling to meet government paperwork requirements.

Retirement Income: While CFIB welcomes the ongoing work to introduce Pooled Registered Pension Plans, we remain concerned that the budget notes that "federal, provincial and territorial governments are continuing work on options for a modest enhancement to the CPP".