StarBuzz Weekly, Toronto-Here are some major highlights of Canada's 2011 budget that was proposed by our Finance Minister Mr. Jim Flaherty yesterday in the Parliament.
On the economy:
No tax hikes or cuts, no major new spending programs and no substantial spending cuts.
2.9 per cent projected GDP Growth
Deficit for 2011-12 : $29.6 billion (2010-11 deficit : $40.5 billion)
End to Federal Stimulus Program
Plan to Balance Budget by 2015-16 through economic growth and spending restraints
Risk of global uncertainty - Fiscal Policy to be reviewed regularly. Govt. to intervene as and when required.
For families and seniors:
A family caregiver tax credit that will be worth up to $300 for caregivers of dependent relatives. This change is expected to help more than 500,000 Canadians looking after their relatives.
A tax credit on children's art programs, amounting to $75 on $500 spent. This is similar to the fitness amount currently being claimed by families for their kids.
A top-up for the lowest third of seniors receiving the Guaranteed Income Supplement, up to $600 per year for singles and $840 per year for couples. This will create a cost pressure of $300 million
For communities and cities:
Tax credit equal to $450 a year for volunteer firefighters in rural areas
Forgiveness of student loans of up to $40,000 for new doctors and $20,000 for nurses in remote and rural areas
Legislation to enshrine as permanent the annual $2 billion Gas Tax transfer for municipal infrastructure
For business and workers:
A hiring credit that provides a one-year EI break of up to $1,000 for 525,000 small businesses.
Continuation of the temporary accelerated capital cost allowance on machinery and equipment
A "Helmets to Hardhats" program to help ex-military members to find work in the construction industry.
Elimination of mandatory retirement for federally regulated employees
Creation of 10 new Canada Excellence Research Chairs at universities and 30 industrial research chairs at colleges and polytechniques
No change in plan to cut corporate taxes to 15 per cent by 2012 - this will greatly benefit in Tax Planning for small and medium businesses.
Some Political Maneuvers
· Budget sticks to Conservative fundamentals but offers the NDP concessions, though not their full wish list. NDP wants $700 million for seniors however, budget provides $300 million in additional GIS
· The Eco-energy home retrofit rebate is extended, but there's nothing on home heating costs or the Canada Pension Plan. The question remains: Is it enough to win Mr. Layton's support?
· The budget signals a new round of cuts across government departments with plans to identify and slash overall program spending by 5 per cent for a permanent $4-billion in annual savings beginning next fiscal year.
· With all major opposition parties rejecting the budget proposals Canadians might be heading into their 4th general election in the past 7 years.
-As submitted to us by
Sanjay Khanna B.Com (Hons) CA (I)
TaxAcc Solutions.
Tel: 905-276-1177 ext. 554, Cell: 416-268-6907
Sanjay.khanna@f55f.com
Website: http://www.taxaccsolutions.ca/
On the economy:
No tax hikes or cuts, no major new spending programs and no substantial spending cuts.
2.9 per cent projected GDP Growth
Deficit for 2011-12 : $29.6 billion (2010-11 deficit : $40.5 billion)
End to Federal Stimulus Program
Plan to Balance Budget by 2015-16 through economic growth and spending restraints
Risk of global uncertainty - Fiscal Policy to be reviewed regularly. Govt. to intervene as and when required.
For families and seniors:
A family caregiver tax credit that will be worth up to $300 for caregivers of dependent relatives. This change is expected to help more than 500,000 Canadians looking after their relatives.
A tax credit on children's art programs, amounting to $75 on $500 spent. This is similar to the fitness amount currently being claimed by families for their kids.
A top-up for the lowest third of seniors receiving the Guaranteed Income Supplement, up to $600 per year for singles and $840 per year for couples. This will create a cost pressure of $300 million
For communities and cities:
Tax credit equal to $450 a year for volunteer firefighters in rural areas
Forgiveness of student loans of up to $40,000 for new doctors and $20,000 for nurses in remote and rural areas
Legislation to enshrine as permanent the annual $2 billion Gas Tax transfer for municipal infrastructure
For business and workers:
A hiring credit that provides a one-year EI break of up to $1,000 for 525,000 small businesses.
Continuation of the temporary accelerated capital cost allowance on machinery and equipment
A "Helmets to Hardhats" program to help ex-military members to find work in the construction industry.
Elimination of mandatory retirement for federally regulated employees
Creation of 10 new Canada Excellence Research Chairs at universities and 30 industrial research chairs at colleges and polytechniques
No change in plan to cut corporate taxes to 15 per cent by 2012 - this will greatly benefit in Tax Planning for small and medium businesses.
Some Political Maneuvers
· Budget sticks to Conservative fundamentals but offers the NDP concessions, though not their full wish list. NDP wants $700 million for seniors however, budget provides $300 million in additional GIS
· The Eco-energy home retrofit rebate is extended, but there's nothing on home heating costs or the Canada Pension Plan. The question remains: Is it enough to win Mr. Layton's support?
· The budget signals a new round of cuts across government departments with plans to identify and slash overall program spending by 5 per cent for a permanent $4-billion in annual savings beginning next fiscal year.
· With all major opposition parties rejecting the budget proposals Canadians might be heading into their 4th general election in the past 7 years.
-As submitted to us by
Sanjay Khanna B.Com (Hons) CA (I)
TaxAcc Solutions.
Tel: 905-276-1177 ext. 554, Cell: 416-268-6907
Sanjay.khanna@f55f.com
Website: http://www.taxaccsolutions.ca/
No comments :
Post a Comment
Your comments are welcome.