Minister Flaherty Welcomes Royal Assent of the Economic Action Plan 2013 Act, No. 2

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The Honourable Jim Flaherty, Minister of Finance, today welcomed the Royal Assent of Bill C-4, the Economic Action Plan 2013 Act, No. 2.

“With Royal Assent, our Government is poised to implement a number of outstanding measures from Economic Action Plan 2013,” said Minister Flaherty. “Canada continues to see the best job growth in the Group of Seven (G-7), with almost 1.1 million jobs created since July 2009. As we close in on our goal of returning to balanced budgets in 2015, with an expected surplus of $3.7 billion in 2015–16, the Economic Action Plan 2013 Act, No. 2 sets the stage for more job creation, more economic growth and greater prosperity for all Canadians.”

The Economic Action Plan 2013 Act, No. 2 positions Canada for long-term success with key measures to support job creators, such as:

  • Freezing Employment Insurance premium rates for three years, leaving an estimated $660 million in the pockets of job creators and workers in 2014 alone;
  • Increasing and indexing the Lifetime Capital Gains Exemption, to make investing in small business more rewarding; and
  • Extending and expanding the temporary Hiring Credit for Small Business, which will benefit an estimated 560,000 employers in 2013.

The Act also closes tax loopholes and helps combat tax evasion by, for example:

  • Introducing new administrative monetary penalties and criminal offences to deter the use, possession, sale and development of electronic suppression of sales software designed to falsify records for the purpose of tax evasion; and
  • Extending, in certain circumstances, the period during which the Canada Revenue Agency can reassess a taxpayer who fails to report income from foreign property.

In addition, the Act ensures respect for taxpayers’ dollars by:

  • Modernizing the Canada Student Loans Program by moving to electronic service delivery; and
  • Phasing out the Labour-Sponsored Venture Capital Corporations tax credit.

“Our Government understands the importance of responsible spending and balanced budgets for long-term economic growth and stability,” said Minister Flaherty. “We remain on track to get back to balance in 2015, without raising taxes or cutting investments in health care and social service transfers, just as we promised Canadians.”

The first Act to implement measures from Economic Action Plan 2013, the Economic Action Plan 2013 Act, No. 1, received Royal Assent on June 26, 2013.