2010 federal budget – an entrepreneur’s perspective

Maybe I’m basking in the Olympic glory and caught up in the national optimism, but I thought the federal budget(pdf) provided the right balance of belt tightening, cautious optimism and few tax changes.

The government recognizes the uncertainty of a sustained recovery, especially given the relative weakness in the U.S. The objective of balancing the budget over five years appears to be based on realistic GDP growth estimates. So much is dependent on the re-emergence of the private sector — as government spending wanes and shifts from bricks and mortar to technological innovation.

Canadian entrepreneurs should welcome a move towards a “tariff-free zone” (the removal of all tariffs on production inputs for manufacturing) designed to bolster productivity although manufacturing would have liked an extension of accelerated tax write-offs on plant and equipment.

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