OTTAWA – Ralph Goodale has delivered the federal government’s latest budget. The move is a further indication that Canadians will be called to the polling stations in the next few months.

The biggest news for small business owners was the decision to increase capital cost allowance rates for computer equipment from 30 per cent to 45 per cent. Other technology equipment used for broadband, Internet and data network devices was also increased from 20 per cent to 30 per cent allowance rates.

The Chamber of Commerce was pleased with this decision, however, the organization noted that the lack of personal and corporate tax cuts was disappointing.

"We would liked to have seen a commitment to putting in place longer-term spending controls as well as a sign that personal income tax cuts are not dead," continued Nancy Hughes Anthony, President and CEO of the Canadian Chamber of Commerce. “In this integrated global economy, individuals, businesses, and capital are becoming increasingly mobile searching for lower-tax and lower-cost jurisdictions. Those that offer a competitive tax structure will gain the upper hand.”

Other highlights for business and commercialization included:

• Venture capital funding of $270 million
• Increasing the small business deduction limit to $300,000 by 2005
• Commercialization funding for research facilities, hospitals, and universities.
• Annual increase of $90 million to Canada’s three federal granting councils

The complete version of Budget 2004 can be found at: http://www.fin.gc.ca/budtoce/2004/budliste.htm.

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