2016 Federal Budget Commentary
On March 22, 2016 the Honourable Bill Morneau, Minister of Finance, presented the 2016 Federal Budget, Growing the Middle Class, to the House of Commons.
The Government’s fiscal position includes a deficit in 2015-2016 of $5.4 billion, and projected deficits in the coming years as follows: 2016-2017 of $29.4 billion, 2017-2018 of $29.0 billion, 2018-2019 of $22.8 billion, 2019-2020 of $17.7 billion and 2020-2021 of $14.3 billion.
The Federal Government notes:
- Investment of more than $120 billion over 10 years in infrastructure will be made (initially including areas such as public transit, affordable housing, and water and wastewater systems).
- The Canada Child Benefit will replace the Universal Child Care Benefit and Canada Child Tax Benefit in July 2016.
- The Arts, Fitness, Education, and Textbook tax credits will be eliminated for 2017. The Family Tax Cut will be eliminated for 2016.
- Various anti-avoidance rules targeting strategies to multiply access to the small business deduction were introduced.
- A Teacher and Early Childhood Educator School Supply Tax Credit valued at up to $150 will be introduced for 2016.
- Numerous enhancements to Employment Insurance benefits were proposed.
- No changes to the taxation of stock options nor the inclusion rate on taxable capital gains were announced.
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