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EI Tax Break for Small Businesses

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EI Tax Break for Small Businesses

FOR IMMEDIATE RELEASE                                                                                                                      September 11, 2021

Battleford-Lloydminster – MP Gerry Ritz welcomes the introduction of the Small Business Tax Credit which will lower small business payroll taxes by 15% for the next two years. Any firm that pays employer EI premiums equal to or less than $15,000 in those years will be eligible for the credit, which will be applied automatically.  That equates to almost 90% of all EI premium-paying businesses in Canada.

It is estimated that this new measure will result in savings of approximately $550 million for small business over the two years. “Our Government recognizes the fundamental importance that small business plays in fueling the Canadian economy,” said Ritz, “These savings will allow small businesses to hire more employees which will in turn help to grow our economy.”

Beginning in 2006 we have introduced numerous measures to support small business growth, including:

·         freezing the EI premiums,

·         reducing small business tax from 12 to 11 percent,

·         increasing the ‘small business limit’ to $500,000 and

·         cutting Red Tape with the elimination of payroll deduction remittances to the Canada Revenue Agency. 

“In total, small businesses have seen their taxes reduced by 34% since 2006” said Ritz, “The introduction of this credit builds upon our Government’s strong support of small businesses within Canada.”

Supporting small businesses in Canada helps to ensure that our economy continues to thrive.  The results are telling:  we have created over 1.1 million net new jobs since July 2009 (over 82% full time and 78% in the private sector), In the years ahead, Canada’s economy is projected to have one of the strongest growth performances in the G7, and Bloomberg recently ranked Canada as the 2^nd best country world-wide in which to do business.

We forward to continuing to work with small businesses to reinforce our commitment to low taxes, economic growth, and long-term prosperity.

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For more information call the office of Hon. Gerry Ritz 613-992-9703