The Canadian federal government released its 2011 Budget yesterday, putting the minority Conservative government under scrutiny again. Reactions range from relatively positive feedback from small businesses groups like the Canadian Federation of Independent Business (CFIB) to uproar from opposition parties, making an upcoming Canadian election likely. Whether this budget survives depends on the outcome of the election, but in the meantime, here’s what people are saying about the budget’s impact on small business
The budget gets a B+ from the CFIB. “We are very pleased government accepted CFIB's recommendation to introduce an Employment Insurance Hiring Credit and with efforts to reduce red-tape — particularly at the Canada Revenue Agency,” says CFIB president Catherine Swift.
The CJB notes that small businesses have been given a break in the budget with the introduction of a $1,000 tax credit to offset EI premiums paid in 2011. Roughly 525,000 small businesses are eligible, and can cumulatively reduce their 2011 payroll costs by $165 million.
The Post’s take was less positive. It quotes Royal Bank of Canada chief economist Craig Wright, who is not entirely convinced in the success of the hiring tax credit. “I can see the political reason behind it, but the economic reason is a little less convincing when the recovery has already taken hold and the job growth is already there.”
The Globe stated that although the changes are temporary and costs are minimal for Ottawa, they would definitely make a significant impact. Essentially, lobby groups supporting small business communities received three major gains: hiring tax credit, manufacturing support, and red tape reduction.
The Star gives its stamp of approval to $80 million funding over 3 years for the Industrial Research Program, and $20 million over the next 2 years provided to start-ups run by young entrepreneurs.