The recently announced federal budget includes some measures that will impact Canadian small business
The Harper government's 2010 budget seems to focus less on business growth and more on controlling federal debt. Still, a report from Canoe.ca suggests that the new plan will have a significant impact on small business operations in the coming years.
In one sense, the federal budget may help fund innovation in the SME community. A new Small- and Medium-Sized Innovation Commercialization Program will garner $40 million in the next two years. Moreover, a total of $19 billion will be put toward stimulus measures in 2010 and 2011.
Additionally, small business taxes might benefit from the new budget. Canada will become a tariff-free zone, and industrial manufacturers will benefit from eliminated tariffs on imported machinery and equipment goods. The taxation of cross-border activity will also be streamlined through budget allocations for the improvement of Canada's international tax system.
Yet, not all news is good news. Employment insurance premiums have been frozen. The source reports that the Canadian Federation of Independent Business predicts this will be accompanied by hidden taxes on SMEs and make it more difficult for employers to hire.
Even with these potential taxes ahead, small business owners might still be optimistic about their enterprises' activity in the coming months. According to a report from Statistics Canada, the economy is on the rise as real GDP increased by 1.2 percent in the fourth quarter of 2009.
