Federal budget
I like this budget, It shows the Conservatives are strategic thinkers. Give 'em some points, jcr. The Conservative government's first budget was…um…pretty conservative. There were no radical changes. There are several smaller cuts, aimed mostly at those in the middle and upper income tax brackets. I thought I’d give you all a little rundown of the major changes that might affect you.
GST: Finance Minister Jim Flaherty stuck to the party line, reducing the GST to 6% as promised during the election campaign. In his speech to the House of Commons, Flaherty said that Canadians could expect to see the GST knocked down by another 1% "in a future budget". Comment: If you’re planning a major purchase, you might consider delaying it to after July 1.
Personal Income Taxes: People in the lowest tax bracket will pay more taxes. For 2006, the lowest personal income tax rate will increase to 15.25% from 15% and, for the 2007 and subsequent taxation years, the rate will go up to 15.5%.
Benefits for Children: The government is proceeding with its Universal Child Care Benefit, providing all families with $100 per month ($1,200 per year) for each child under age six. The budget also offers parents a $500 non-refundable tax credit to offset fees paid to enrol a child under the age of sixteen years in an "eligible program of physical activity".
Benefits for Students: Post-secondary students will be eligible for a 15.25% non-refundable tax credit for textbook expenses, calculated on $65 a month for full time students and $20 a month for part time students. The budget also proposes to fully exempt scholarship, fellowship or bursary income from tax (currently only the first $3000 is exempt). Comment: Drat, my daughter just graduated from university.
Transit Pass Credit: Those who purchase monthly (or longer duration, e.g., annual) transit passes for local bus, streetcar, subway, commuter train, commuter bus and local ferry will be able to claim a non-refundable tax credit based on the lowest personal income tax rate for the taxation year (15.25% for 2006 and 15.5% for the 2007 and subsequent taxation years).
The Canada Employment Credit: Taxpayers will be able to claim a tax credit on $500 of employment earnings to offset work-related expenses (such as a computer at home, for example). Since this measure will take effect on July 1st, the maximum amount for 2006 will be $250. For the 2007 tax year the credit will increase to $1,000, after which it will be indexed to inflation. Comment: As someone who is self employed, I don’t see the need to give salaried workers some of the benefits that the self-employed get, which is probably the reason for doing this. This will be positive for pretty well all of you.
Pension Income Credit: The budget doubles the pension income credit from $1000 to $2000, saving the average pensioner $155 per year. Comment” Might soon affect Pizmo.
0% Capital Gains on Donations: Those who wish to donate publicly-traded securities or ecologically-sensitive land to charitable organizations will no longer have to pay capital gains tax. This measure will apply to donations made on or after May 2, 2006. Comment: I like this one. Encourages donations to charities.
Not in: There was talk of eliminating capital gains taxes when one investment is sold and the proceeds reinvested within a specified period. I really wanted this one, because it would help many of my clients greatly. I still hope it will be in a future budget.
I hope this info might help some of you.
GST: Finance Minister Jim Flaherty stuck to the party line, reducing the GST to 6% as promised during the election campaign. In his speech to the House of Commons, Flaherty said that Canadians could expect to see the GST knocked down by another 1% "in a future budget". Comment: If you’re planning a major purchase, you might consider delaying it to after July 1.
Personal Income Taxes: People in the lowest tax bracket will pay more taxes. For 2006, the lowest personal income tax rate will increase to 15.25% from 15% and, for the 2007 and subsequent taxation years, the rate will go up to 15.5%.
Benefits for Children: The government is proceeding with its Universal Child Care Benefit, providing all families with $100 per month ($1,200 per year) for each child under age six. The budget also offers parents a $500 non-refundable tax credit to offset fees paid to enrol a child under the age of sixteen years in an "eligible program of physical activity".
Benefits for Students: Post-secondary students will be eligible for a 15.25% non-refundable tax credit for textbook expenses, calculated on $65 a month for full time students and $20 a month for part time students. The budget also proposes to fully exempt scholarship, fellowship or bursary income from tax (currently only the first $3000 is exempt). Comment: Drat, my daughter just graduated from university.
Transit Pass Credit: Those who purchase monthly (or longer duration, e.g., annual) transit passes for local bus, streetcar, subway, commuter train, commuter bus and local ferry will be able to claim a non-refundable tax credit based on the lowest personal income tax rate for the taxation year (15.25% for 2006 and 15.5% for the 2007 and subsequent taxation years).
The Canada Employment Credit: Taxpayers will be able to claim a tax credit on $500 of employment earnings to offset work-related expenses (such as a computer at home, for example). Since this measure will take effect on July 1st, the maximum amount for 2006 will be $250. For the 2007 tax year the credit will increase to $1,000, after which it will be indexed to inflation. Comment: As someone who is self employed, I don’t see the need to give salaried workers some of the benefits that the self-employed get, which is probably the reason for doing this. This will be positive for pretty well all of you.
Pension Income Credit: The budget doubles the pension income credit from $1000 to $2000, saving the average pensioner $155 per year. Comment” Might soon affect Pizmo.
0% Capital Gains on Donations: Those who wish to donate publicly-traded securities or ecologically-sensitive land to charitable organizations will no longer have to pay capital gains tax. This measure will apply to donations made on or after May 2, 2006. Comment: I like this one. Encourages donations to charities.
Not in: There was talk of eliminating capital gains taxes when one investment is sold and the proceeds reinvested within a specified period. I really wanted this one, because it would help many of my clients greatly. I still hope it will be in a future budget.
I hope this info might help some of you.
Thanks for paying my GST. 
Echo. 
Comment