Tom Mulcair says an NDP government would reinstate a tax credit for people who invest in labour-sponsored venture capital firms.<\/p>\n
A Montreal crowd of business and union leaders listened Thursday as the NDP leader outlined his party’s plan for sustainable economic growth, which includes bringing back the 15% tax credit.<\/p>\n
The Conservative government announced in its 2013 budget that the tax credit program would be phased out by 2017.<\/p>\n
They said the program was “criticized by academics, international organizations as well as venture capital industry stakeholders as being an ineffective means of stimulating a healthy venture capital sector.”<\/p>\n
The government replaced it with a $400-million “Venture Capital Action Plan.”<\/p>\n
Mulcair called the cut “a purely ideological decision” that “hurts the economy” during a speech at the Board of Trade of Metropolitan Montreal.<\/p>\n
He added the 15% tax credit “helps working families to save and invest in the small and medium sized businesses that are the backbone of our regional economies.”<\/p>\n
The Liberal Party of Canada made a similar announcement to reinstate the tax credit in February.<\/p>\n
An example of a labour-sponsored venture capital corporation is Quebec Federation of Labour’s Solidarity Fund, which was created in 1983 by one of the province’s largest labour unions.<\/p>\n
The fund invests mainly outside the province’s large cities and in projects that have difficulty securing financing.<\/p>\n
The NDP says it will bring back the program which gave a 15% federal tax credit for investments of up to $5,000 in labour-sponsored venture capital firms.<\/p>\n
A spokesman for Finance Minister Joe Oliver said in an email the credit “was not working to produce jobs and growth.”<\/p>\n
Mulcair also reiterated earlier promises to cut the small business tax rate by two points to 9%.<\/p>\n
Additionally, an NDP government would boost funding for infrastructure by $400 million over four years to $3.7 billion, he said.<\/p>\n
Mulcair added he’ll also transfer an additional 1% of the gas tax to the provinces and end the Conservative government’s latest income-splitting proposal, which he says only benefits the richest families.<\/p>\n
The federal NDP is riding high in the polls that suggest they are in first place in Quebec and have a strong chance at winning government in the fall.<\/p>\n
Mulcair will deliver another speech to Economic Club of Canada in Toronto next Tuesday.<\/p>\n","protected":false},"excerpt":{"rendered":"
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