ONTARIO - Finance Minister Jim Flaherty introduced new legislation this week that will help small business owners in addition to low and middle income families. Flaherty is using The Responsible Choices for Growth and Fiscal Responsibility Act to make good on promises that were made in the 2001 budget.

"We're continuing to deliver on promises made to Ontario taxpayers about making responsible choices and supporting economic growth."

The good news for business owners is:

• corporate and capital tax cuts will be moved up from January 1, 2002 to October 1, 2001;
• the reduction of small business tax rates that were announced .. will now be implemented at a faster rate;
• businesses with corporate tax payable of at least $2,000 and less than $10,000 will be able to pay taxes in quarterly installments rather than monthly, which will reduce red tape;
• businesses that receive the federal investment tax credit will now be able to exclude the portion that relates to Ontario R&D expenditures from their Ontario taxable income; and
• the deadline for new Community Small Business Investment Funds will be extended to December 31, 2002.

As well, low and middle-income families will receive a one time, tax-free payment of $100 for each child under seven under the new Act. The money should arrive just in time for Christmas.

"An economic slowdown is especially hard on low- and middle-income families with young children," said Flaherty. "We believe it is important at this time to give these parents some extra help with caring for their families."

Other elements of the Act include taking control of the GO Transit system back from the municipalities, and providing tax relief to owners of heritage properties.

 

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