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Budget 2017: Liberals try to ease anxiety and get Canada ready for the future

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  • Mar 29th, 2017 5:19 am
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Budget 2017: Liberals try to ease anxiety and get Canada ready for the future

Federal government will table budget on March 22
The budget will land as Ottawa scrambles to assess the risks of possible and unpredictable U.S. policy actions under Donald Trump
http://www.macleans.ca/politics/federal ... -march-22/
OTTAWA – Finance Minister Bill Morneau will introduce the federal government’s latest budget on March 22 — his first amid the economic uncertainty of the Donald Trump era.
Morneau made the announcement today during question period, billing the 2017 budget as one that will “create jobs and invest in our communities,” as well as “ensure our success in the economy of the future.”
The budget, the Liberal government’s second since the 2015 election, will land as Ottawa and corporate Canada scramble to assess the risks of possible and unpredictable policy actions from the country’s top trading partner.
There are fears of negative economic fallout for Canada from the decisions of the Trump administration, and it’s unclear whether Morneau’s budget will account for the unknowns.
Trump calling cards like a border tax, protectionist policies, corporate and personal tax cuts and a renegotiated North American Free Trade Agreement all pose an economic danger north of the border.
The budget will also follow a series of stronger-than-expected economic indicators in recent weeks. In November, Morneau’s fall fiscal statement predicted a deficit of $25.1 billion this year and a shortfall of $27.8 billion for 2017-18.
But even with the encouraging results of late for indicators like job creation and trade, Conference Board of Canada chief economist Craig Alexander said the “slightly” better outlook since the start of the year still has a huge cloud hovering above it.
“In the wake of the election victory by Trump, a lot of uncertainty was introduced into the economic forecasts,” said Alexander, who participated in Morneau’s Jan. 13 meeting to hear projections from private-sector economists.
Trump’s famous unpredictability means it’s impossible to know for sure the challenges Canada could end up facing, he added.
“When we actually have the budget, it will be interesting to look at it in a lens of how has the Canadian government responded to potential Trump issues. That’s not normally the way we read a budget.”
The Trudeau government has been criticized since last year’s budget for not outlining when it will bring the federal books back to balance following a string of projected annual, double-digit shortfalls until at least 2021-22.
The Liberal government cited a weaker-than-expected economy last year when it abandoned several firm fiscal benchmarks that the party gave prominence during the 2015 election campaign.
They ditched pledges to run annual deficits of no more than $10 billion and to balance the books in four years. Instead, they have focused on reducing the debt-to-GDP ratio — also known as the debt burden — below the current level by 2019-2020.
The Liberals have laid out a plan to run deficits as a way to invest billions into economy-boosting infrastructure projects over the coming years.
Morneau has reiterated that the government would be “fiscally responsible.”

Canadian Minister of Finance Bill Morneau talks about trade relations with the U.S. and renegotiating the North American Free Trade Agreement. | Squawk Box | CNBC
Last edited by tk1000 on Mar 7th, 2017 9:10 pm, edited 3 times in total.
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Please, please don't raise the capital gains tax rate, Mr. Morneau!
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A review of federal spending has found that Ottawa’s budget for skills and innovation is already approaching $23-billion a year and there is little reporting on what it achieves, a finding that raises questions about Liberal plans to spend more in this area in the 2017 budget...

Young Canadians could pay dearly for Liberals’ deficit-financed spending: report
http://www.theglobeandmail.com/news/pol ... e34244165/
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tk1000 wrote:
Mar 9th, 2017 10:53 am
A review of federal spending has found that Ottawa’s budget for skills and innovation is already approaching $23-billion a year and there is little reporting on what it achieves, a finding that raises questions about Liberal plans to spend more in this area in the 2017 budget...

Young Canadians could pay dearly for Liberals’ deficit-financed spending: report
http://www.theglobeandmail.com/news/pol ... e34244165/
No worries. We'll grind dead boomers in to bio diesel and sell it to the US.
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Well it's kind of win win for the liberals. Last year they blamed everything on Harper and now, they get to blame everything on Trump..
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Is Trudeau using the White House to hide the Liberal government’s money problems? Hébert
Liberal spin doctors have been downplaying expectations for Finance Minister Bill Morneau’s second budget. They blame the uncertainty south of the border.

https://www.thestar.com/news/canada/201 ... hbert.html


Federal budget won't contain specific actions to address Trump uncertainty

http://rdnewsnow.com/article/529841/fed ... ncertainty


Trump threatens to derail Trudeau’s economic fairness agenda: Walkom
The Liberals' plan to alleviate income inequality wasn't much to begin with. Now, it is under threat.

https://www.thestar.com/opinion/comment ... alkom.html
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HAHA, Liberal is running tens of billions of dollars of deficits (way more than they promised) and yet CBC is focus it on Trump angle....

also if they are in liberal's pocket. ;)
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Finance Minister Town Hall: Ask Bill Morneau Your Questions
http://www.huffingtonpost.ca/2017/03/15 ... 89648.html

Since the Liberal government released its first budget, part-time jobs have outpaced full-time positions, and real estate in some parts of the country has gone from hot to scalding.

Despite promises to bolster the middle class and bring more Canadians into it, people across the country shared their continued worries about the economy with Prime Minister Justin Trudeau during his national town hall tour.

Finance Minister Bill Morneau is slated to reveal the 2017 budget on March 22. Two days later, he will answer your questions live in a digital town hall, hosted by The Huffington Post Canada and broadcast through Facebook Live.

What do you want to ask the minister? Send us your questions in the comments below. And follow us on Facebook so you don't miss the live event Friday, March 24 at 2:30 p.m. EST.
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10 ways the federal budget could affect you
Some are speculating that the capital gains inclusion rate could rise
http://www.moneysense.ca/save/taxes/fed ... -finances/
1. Encouraging skills upgrading
2. Cracking down on tax evasion
3. Taxing a portion of capital gains on principal residence
4. Changes to capital gains inclusion rate
5. Small business deductions may be pared back
6. Changes to dividend tax credit
7. “Boutique” tax credits revamp
8. Employee stock option changes
9. Broaden access to the Home Buyers’ Plan (HBP)
10. OAS and GIS being tied to a new alternative consumer price index
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I hope they bring in a suite of tax reforms to tax our principal residence...especially if you use your home as a business. I know lots of "entrepreneurs" who use their homes as their Scentsy business location and I'd love to see 20% of their house get taxed at the time of a sale. Disastrous for the Liberals though. Lots of these taxes and changes are directed at the middle class who they always claim to be supporting.
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hugh_da_man wrote:
Mar 21st, 2017 2:57 pm
I hope they bring in a suite of tax reforms to tax our principal residence...especially if you use your home as a business. I know lots of "entrepreneurs" who use their homes as their Scentsy business location and I'd love to see 20% of their house get taxed at the time of a sale. Disastrous for the Liberals though. Lots of these taxes and changes are directed at the middle class who they always claim to be supporting.
How would you determine that?
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Archanfel wrote:
Mar 21st, 2017 2:59 pm
How would you determine that?
How would they determine what? That you used your home as a business? Lots of people claim a percentage of their home for business use so that they can get write offs on electricity or heat as well as internet and phone. Gains would be filed on your taxes and the CRA would figure out if they owe based on past claims.
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hugh_da_man wrote:
Mar 21st, 2017 3:03 pm
How would they determine what? That you used your home as a business? Lots of people claim a percentage of their home for business use so that they can get write offs on electricity or heat as well as internet and phone. Gains would be filed on your taxes and the CRA would figure out if they owe based on past claims.
Oh, ok. I thought they already tax capital gain based on the percentage of non-PR usage. I guess not.
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Archanfel wrote:
Mar 21st, 2017 3:08 pm
Oh, ok. I thought they already tax capital gain based on the percentage of non-PR usage. I guess not.
Not that I'm aware of. It'd be interesting though, I'd love to see them tax people who rent out a portion of their home. Rent out 50% of your home, pay tax on 50% of the house when you sell. It'd be a brutal hit to the middle class and overall to affordable housing but I think it would be more fair to people who can't afford to own property.
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