The Federal Liberals presented their first Federal Budget in the House of Commons yesterday (March 22, 2016). The budget announced spending for aboriginal communities and infrastructure, as well as making good on their election promise to revamp the tax credits available for middle-class families with children.
The larger than expected deficit inherited from the former Conservative government, a slower than expected economy and their election spending promises has the 2016/2017 deficit coming in at just under $30 billion. This is significantly greater than their election promises of a $10 billion deficit. Finance Minister Morneau indicated that despite the deficit spending, the size of the debt will shrink as a percentage of the overall economy over the coming years.
Our podcast provides details on a number of budget announcements, including:
- Changes to the Canada Child Benefit;
- Elimination of the Education and Textbook Tax Credit;
- Elimination of the Children's Fitness and Arts Tax Credit;
- Support for Clean Energy;
- Life Insurance Policies;
- Eligible Capital Property;
- Small Business Deduction;
- Country-by-Country Reporting with respect to Transfer Pricing;
- Treaty abuse measures;
- Spontaneous Exchange of Tax Rulings; and
- Automatic exchange of Information with Foreign Jurisdictions.
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