News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Prime Minister Harper says budget will boost Canadian business

May 24, 2006
London, Ontario

Prime Minister Stephen Harper said today that his government’s first budget will help unleash the potential of Canada’s business community through a combination of tax cuts and investment incentives.

In a speech to the London Chamber of Commerce, the Prime Minister stated that Budget 2006 included no less than 29 tax cuts for Canadian businesses and individuals. These reductions are worth $20 billion over the next two years – more than the last four federal budgets combined.

“We believe opportunity is created when hard work and innovation are rewarded,” the Prime Minister said. “We understand that business thrives when government embraces an environment that rewards achievement.”

Prime Minister Harper highlighted several key initiatives announced in the recent budget to benefit the business community, including:

Raising the amount of income eligible for the 12 percent small business income tax rate from $300,000 to $400,000 annually. The rate itself will be lowered to 11 percent by 2009;

Introducing a new tax credit of up to $2,000 for employers who hire apprentices;

Introducing a new tax credit for employees’ work-related expenses on tools and equipment;

Reducing the general corporate income tax rate from 21 percent to 19 percent by 2010; and

Eliminating both the federal capital tax and the corporate surtax.

On the spending side of the budget, the Prime Minister noted that expenditures were disciplined and focused on areas of federal jurisdiction, including improved border security, re-staffing the RCMP and rebuilding the Armed Forces. “No longer will money be wasted on ever-changing and ever-expanding priorities,” Prime Minister Harper said.

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The Prime Minister’s Office - Communications
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