2017 Federal Budget Commentary
On March 22, 2017 the Honourable Bill Morneau, Minister of Finance, presented the 2017 Federal Budget, Building a Strong Middle Class, to the House of Commons.
The Government’s fiscal position includes a projected deficit in 2016-2017 of $23.0 billion, and projected deficits in the coming years as follows: 2017-2018 of $28.5 billion, 2018-2019 of $27.4 billion, 2019-2020 of $23.4 billion, 2020-2021 of $21.7 billion and 2021-2022 of $18.8 billion.
The Federal Government notes:
- No change to the personal and corporate tax rates, nor inclusion rate on taxable capital gains.
- An additional $523.9 million over five years to prevent tax evasion and improve tax compliance.
- Elimination of the public transit credit and home relocation loan deduction.
- Commencing July 1, 2017, ride-sharing services (e.g. UBER, Lyft) will be defined as “taxi businesses” for GST/HST purposes and therefore be required to charge and remit GST/HST.
- Phasing out of the Canada Savings Bond Program.
- Expanding employment insurance benefits for caregivers and certain other groups.
- As part of a new National Housing Strategy, an investment of more than $11.2 billion in a range of initiatives designed to build, renew and repair Canada’s stock of affordable housing.
- More than $2.2 billion, on a cash basis, to support clean technology research, development, demonstration and adoption as well as to accelerate the growth of clean technology companies.
- Over the next 11 years, new investments of $7 billion towards early learning and child care.
- An investment of $828.2 million over five years, starting in 2017–18, to improve the health outcomes of First Nations and Inuit.
Download Full Commentary