From: abc@a123.ca   
      
   Tax breaks for small business part of plan to stay course: Flaherty   
      
   BY JASON FEKETE, POSTMEDIA NEWS OCTOBER 4, 2011   
      
   OTTAWA — Finance Minister Jim Flaherty re-announced a series of small tax   
   breaks Tuesday that were originally in the budget but said his government   
   isn't considering any drastic new measures to insulate the Canadian   
   economy from global turmoil.   
      
   Flaherty again called on eurozone countries to get their fiscal houses in   
   order and also said he's concerned about provinces in Canada that are   
   facing mounting deficits and debt.   
      
   "As recent world events show, there remains considerable risk and   
   uncertainty in the global economy, and at home too many Canadians still   
   remain out of work," Flaherty told reporters at a news conference at   
   Buster's Bar and Grill, a small business in Ottawa.   
      
   The minister said Canada will stay the course on its economic strategy,   
   that includes such modest fiscal measures as tax credits to spur the   
   economy, rather than initiate billions of dollars in new stimulus   
   spending called for by opposition parties.   
      
   Rather, Flaherty said the eurozone situation has shown that ratcheting up   
   spending and running deficits will hurt, not help, the Canadian economy.   
   It would take another global recession for the Conservative government to   
   dramatically overhaul its economic strategy, he noted.   
      
   "In the absence of an external shock to the Canadian economy, we're on   
   the right track," he said. "Accumulating deficits and creating a large   
   public debt over time is the worst thing you can do to an economy."   
      
   Although markets remained in turmoil Tuesday, Flaherty said the G-20 is   
   not preparing emergency measures to stabilize markets and economies.   
      
   With the loonie sinking in value, he said the volatility of the Canadian   
   dollar "is always a concern," explaining there's a flight to the U.S.   
   greenback because it's seen as a perceived safe haven.   
      
   Flaherty also said he's concerned about the fiscal situation of some   
   provinces, including Ontario, and that "these are issues that need to be   
   addressed."   
      
   Calling the private sector the "engine of growth and job creation," he   
   announced a smattering of modest tax measures, including a hiring credit   
   for small businesses that was already announced in the pre- and   
   postelection budgets.   
      
   But opposition parties insist the government is too flat-footed in   
   reacting to the changing economic times. NDP finance critic Peggy Nash   
   said Tuesday the government must take immediate action to stabilize   
   pensions, fix crumbling infrastructure and formulate a jobs strategy to   
   get unemployed Canadians back to work.   
      
   She also called on the Harper government to axe billions of dollars worth   
   of "blind corporate tax cuts" that don't guarantee any new jobs will be   
   created.   
      
   "Canadians are tired of talk and inaction from Ottawa. Canadians are   
   looking for action," Nash told reporters. "Now is the time to act . . .   
   The government has been the opposite of nimble."   
      
   The government will introduce omnibus budget legislation Tuesday that   
   will provide small businesses with a temporary tax credit, among other   
   measures.   
      
   Under the one-year initiative, the government will cover some of the   
   costs of small companies' EI premiums for workers.   
      
   In an effort to defray the cost of hiring, a small business will be given   
   a one-time credit of up to $1,000 against the employer's increase in its   
   2011 premiums over those paid in 2010.   
      
   The initiative is designed to encourage businesses to hire new employees.   
   The Tories said the new tax credit would be available to about 525,000   
   small employers — those with fewer than 25 employees — whose EI premiums   
   were at or below $10,000 in 2010.   
      
   The Tories also say the initiative will reduce combined 2011 payroll   
   costs by about $165 million.   
      
   The government believes the credit will allow a small business to hire an   
   additional worker at a salary of up to $40,000 or two part-time workers   
   at a salary of up to $20,000 each and would not have to pay additional EI   
   premiums.   
      
   Other budget measures include: expanding tax support for clean-energy   
   generation; extending the mineral exploration tax credit by a year;   
   simplifying Canada's tariff legislation to boost trade; extending the   
   accelerated capital cost allowance in manufacturing for two years; and   
   eliminating the mandatory retirement age for federally regulated   
   employees.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)