Venture Capital Tax Credit Program Government also intends to introduce a venture capital tax credit program. This program will provide investors with a tax incentive to invest in local businesses. Details will be announced this year following consultations with the business community and other stakeholders. The program will provide new entrepreneurs or expanding small businesses with access to funding, on a matching basis, to help them acquire the necessary business expertise to pursue new business ideas and markets for their products or services. Tax Climate Mr. Speaker, having a competitive tax climate was emphasized throughout the Jobs and Growth consultations as an important element of government's plan to encourage economic growth.
Government is prepared to make changes to the tax system to create a more positive business climate.
In both the 1998 and 1999 budgets, government cut the payroll tax by increasing the exempt threshold. Mr. Speaker, government has given careful consideration to this recommendation and has listened carefully to the business community during the Jobs and Growth consultations. We believe it is more important, at this time, to maintain the competitive advantage of businesses in this sector. Therefore, I am pleased to announce that there are no increases in corporate income tax rates in this Budget. Payroll Tax Reduction Mr. Speaker, I am very pleased to announce today that this year government is cutting the payroll tax for a third consecutive year.