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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