Time to make things better for job creators in Canada
June 20th, 2014 - 3:31pm
One thing that is easy to lose perspective on is the nature of business in Canada. While the needs and desires of mega-projects and big corporate entities can enchant news broadcasts and dominate political discussion, it is a fact that the overwhelming majority of businesses in Canada are small and medium sized. Given that, it would make sense that the government would prioritize the needs of these businesses and big-time job creators – but they don’t.
Still, these smaller businesses and entrepreneurs require measures that will reduce frustrations and help them succeed. To that end, New Democrats are promoting practical, common sense solutions that would help. Things like restoring the Small Business Hiring Tax Credit, reducing taxes for small business, cracking down on hidden credit card transaction fees, creating a new tax credit for businesses that hire and train young people, financing to help small business owners grow their business, making it easier for parents to pass family businesses to their kids, reducing unnecessary red tape, offering tax credits to offset “payroll taxes”, and finding ways to help small businesses innovate will all help to make it easier for these businesses.
Canada is already one of the most entrepreneurial countries in the world. Imagine how that could grow if we did more to help small and medium-sized businesses thrive, prosper and grow. Instead of giving tens of billions in handouts to large corporations with no strings attached we should be focused on helping those with a strong record as job creators. Any money invested would pay for itself over and over again as businesses thrive.
If we recognize that young entrepreneurs and family businesses are key to Canada’s economic future by creating more high-quality, middle-class jobs we can look at measures that foster them as an investment in our overall fiscal capacity. Measures such as the Hiring Credit for Small Business which was cancelled by the Conservatives in their last budget create more money than they cost. The same can be said of a reduction in the small business tax rate.
Another benefit to fostering small and medium sized ventures is the effect it will have on stabilizing employment in our communities. Instead of having jobs concentrated in major centres, we can do things in a way that will allow smaller towns and cities to stabilize and grow. The information age was supposed to decentralize our work spaces but the opposite has happened. That may be because of policies that have focussed too much on large employers while turning a blind eye to those that create a full third of Canada’s GDP.
At the end of the day it may come down to lobbying. While small and medium sized businesses do not have the luxury of retaining expensive and influential lobbyists, the sectors that have preoccupied the government do. It is obvious whose message is being heard in the Prime Minister’s office and exposes a hole in the Conservative’s swing that isn’t serving Canadians in the way a government ought to.