Feds To Announce Job-Creation Plan

The federal government will announce a job-creation program on Tuesday, the CBC has learned.

The program, Hiring Credit for Small Business, is a tax cut aimed at small businesses and entrepreneurs interested in expansion but reluctant to add workers because of increased overhead costs, especially Employment Insurance premiums.

"Every time a small business hires an additional worker, it results in additional costs — everything from training to EI premiums," says a memo sent to the Conservative caucus and obtained by the CBC.

The program will give "the small business owner a tax cut equivalent to the additional EI premiums, up to $1,000," the memo says. "As a result, a small business could 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 they would not have to pay additional EI premiums."

The government believes as many as 525,000 small businesses and entrepreneurs across the country will be interested in taking part in the program, which the memo says is part of the "strong mandate" for job creation and economic growth given to the majority Conservatives in the last election.

"Canada has now created nearly 600,000 net new jobs since July 2009," the memo says, adding the new program is "an important part of our low-tax plan to complete the economic recovery."

Origin
Source: Huffington