Ottawa will continue to cut business taxes to spur job creation, Finance Minister Jim Flaherty said Monday, but he repeated the federal government plans no major new spending programs in the coming budget.
In a speech in Oakville, Ont., Flaherty said the federal government will move ahead with plans to reduce taxes for small and medium-sized businesses next year, part of legislation passed in 2007.
He said an academic study of the plan concluded it would lead to $49 billion in greater capital investment and 233,000 new jobs in Canada in the years ahead.
“To increases taxes on businesses now, as some of our opponents are proposing, would put hundreds of thousands of jobs in jeopardy at a time when our economy remains fragile,” the minister told the Oakville Chamber of Commerce as he continued a series of pre-budget consultations.
The 2011-12 federal budget is expected in late February or early March.
Flaherty has warned for months that Canadians should not expect any new spending programs in the coming budget that would trigger an increase in the deficit.
In fact, Ottawa intends to begin cutting its deficit this year with spending restraint.
“We will not make significant new government spending commitments this year that would trigger bigger deficits and higher taxes,” the minister said in his speech.
“We simply cannot afford to risk the economic recovery and the future of your children and grandchildren by running large deficits longer than necessary.”