The Conservative Party reiterated its promise Tuesday morning in the 2011 budget to introduce a one-year payroll tax break for small businesses, while the Liberals and NDP made new pledges on the campaign trail that might be of interest to Bay Street banks.
Prime Minister Stephen Harper, seeking a third term, said if re-elected he would implement a budget measure that provides small firms a one-year hiring credit. The “temporary” credit, valued at $1,000, is meant to offset the cost in Employment Insurance premiums of hiring an additional full-time employee, as well as spur job growth. The total cost of the measure is estimated at $165-million.
Liberal Leader Michael Ignatieff said that, if elected, his government would make $1-billion available to high school students, especially from lower-income families, to help them get to university or college. The grant — of up to $1,500 a year and distributed under the Learning Passport program — would be deposited by Ottawa into Registered Educations Savings Plans (RESPs) and does not require matching funds from parents. Households have RESPs at chartered banks and other financial institutions.
“A weakness of the current RESP is its low take-up rate among families of modest and low-incomes,” a Liberal statement said. “Many families simply don’t have extra money to put aside after paying all the bills. The Learning Passport will be a significant boost to the RESP system, especially for those families least able to save large amounts.”
Meanwhile, NDP Leader Jack Layton — never afraid to take on the chartered banks — said his party would push that interest rates on credit cards be capped at 5% plus prime.
“With Canadian households more in debt than ever, it’s time for a government that will put the interests of consumers on par with those of Canada’s major banks,” the NDP said.