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Compilation of ideas from Constituents. Budget Consultation 2009. Canada’s Economic Performance 2006-2008 “Where we have been”. Balanced Budgets 2006-2008 Reduced national debt by $37 billion – Tax Back Guarantee returns the interest saved by lowering taxes
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Compilation of ideas from Constituents. Budget Consultation 2009
Canada’s Economic Performance 2006-2008“Where we have been” • Balanced Budgets 2006-2008 • Reduced national debt by $37 billion – Tax Back Guarantee returns the interest saved by lowering taxes • The average family through tax and the child benefit save on average $3,600 a year • Cut taxes to hardworking Canadians this year by $31 billion, equal to 2% of GDP • Cut taxes by $50 billion to small businesses and corporations, over the previous and next five years • Canada has the strongest economic performance of any country in the G7 • Strong financial institutions unlike those in the U.S.
Specific Measures • Lowered the GST from 7% to 5% • Lowered personal income tax rates • Created the Tax Free Savings Account • 25% reduction in the minimum required withdrawal from RRIF • Increased the number of years RESP can be contributed to and kept open • Created the Registered Disability Savings Plan • Universal Childcare Benefit $1200/year
Specific Measures – continued • Tax credits for fitness, apprentices and tools • Cut small business tax rate from 13% to 11% • Reduced corporate tax rate from 22.5% to 19.5% to 15% by 2012 • Capital cost allowances write off for manufacturers • $75 billion in liquidity to financial markets • Expanded availability of scientific and research development program • $3 billion to the BDC & EDC
Where we are? • We’re facing a global economic downturn that originated outside our borders – primarily in the U.S • Canada has been, and will be, negatively affected • Our economy will contract, businesses will close, jobs will be lost. This is a recession. • While we cannot fix the global economy ourselves, the federal government has and will continue to take steps to help boost Canada's economy
What is economic stimulus? • Government itself cannot ‘fix’ the economy, but can encourage new job and investment support • Fiscal stimulus can take many forms from tax reductions and government spending • It should boost the economy when needed, not when it has already recovered • An effective stimulus should also balance our short term needs with our long term goals of improved productivity through education, skills development, innovation and technology
What isn’t economic stimulus? • Wasteful government spending on ineffective programs or larger bureaucracies does not stimulate the economy • Higher taxes will not help stimulate the economy
What are we doing? • On January 27th, your Government will deliver the earliest federal budget in history. This unprecedented step is in direct response to the current downturn • As we prepare the budget, our government is consulting widely across the country with: • provinces and the territories • opposition parties • business and labour groups • Canadians like you
What are we hearing? • Budget 2009 must not result in a structural deficit • Investing in housing • Supporting workers and sectors affected by the declining economy • Improving access to credit • Measures should be timely, have maximum impact for Canadians, be flexible in size and duration and be consistent with our long-term economic goals • Work with the new U.S. administration
Invest in and Expedite Infrastructure Projects • Windsor – Detroit Border Crossing; • High speed rail initiative; • Charing Cross Road / Hwy 401 interchange. Benefits: • Stimulate the economy and business in the area. • Provide employment during such undertakings.
Tax Breaks • Write off interest on loans, family cars, business cars & trucks and principle home mortgages. • Create a Canada Economy Fund for lost tax revenue. • Any private or business person can donate to this fund and receive double write off for every dollar donated, the deadline would be February 28th.
The Housing Market • Create rental subsidies according to income. • When buying or selling have 3% interest on mortgages and possible write off of interest.
Employment Insurance (EI) Discard the 2 week waiting period. Extend benefits. Income Splitting for Everyone Stay at home parents do not have an income, but have a very important role.