Canada 2010 Federal Budget Highlights
March 4th, 2010 Posted in Canadian and Global Economy
Canada 2009 Budget
Canadian Finance Minister James M. Flaherty released the 2010 Federal Budget today. The Canadian government plans to cut its record deficit ($54-billion) in half in two years and hopes to return to surplus in 2015.
19-billion dollar, The second half of the original $47-billion stimulus package that was outlined in 2009, will be injected into the economy in 2010.
Canadian economy grew at 5% in 2009 final quarter and expected to grow 2.6% in 2010, 3.2% in 2011, and 3% in 2012.
Now, let’s look at some important highlights that will affect you directly:
- No tax increases or tax relief.
- The basic personal amount (this is the amount you can earn without paying taxes) will increase to $10,382 in 2010.
- The government is maintaining its freeze on EI premium rate at $1.73 per $100 of insurable earnings until the end of 2010. In 2011, the allowable increase will be y a maximum of 15 cents per $100.
- A deceased individual’s RRSP or RRIF can be transferred tax-free to a registered disability savings plan of a financially dependent disabled child.
- Single parents with one child under the age of six will be able to save $168 a year, as the the Universal Child Care Benefit will be taxed in the hands of an Eligible Dependent for single parents.
- Families of children with disabilities will be able to carry forward the Registered Disability Savings Plan (RDSP) unused grants and bonds for 10 years.
- Financial institutions will be required to disclose sufficient information about the terms and conditions regarding their products and services for greater transparency. Mortgage calculations and pre-payment penalties will have to follow the same suit.
- Changes will be made to the Income Tax Act. Canadians will be able to receive notices of assessment electronically.
- Some cosmetic procedures which are not considered medically necessary, such as hair transplants, Botox injections, liposuction, and teeth whitening will no longer be used for medical expense tax credit.
These are just some highlights I have picked. For more information about this budget, visit Canada Budget 2009.
More Canada Articles:
Why Canada Is The Place To Be Right Now
New Mortgage Rules Come To Canada
Canada Personal Finance Website
4 Responses to “Canada 2010 Federal Budget Highlights”
By Raif on Mar 22, 2011
With the continuing tranfer of tax collection to the consumer portfolio the collateral affect of increasing taxes is processed without notice. Increased cost in the food, materials,and services sectors passes a windfall to governments with the HST taxation plan alone. It is great to see some attention paid to seniors but more money isn’t really the problem. The problem is is that most supplemental programs such as GIS and SA have a qualifying benchmarks so low that most seniors can’t clear that obstacle. Seniors to Mr. Harper, raise the threshold from %32,000 per year per couple to at least the poverty wage threshold of $28,000 per year per person, that is $56,000 per year per couple.
By Anthony Parker on Apr 13, 2011
It is amazing to me to see Canada being so proactive and actually doing something to cut the federal budget to get out of debt. I only wish here in a America we could put the same type of approach in place, especially without any further tax increases.
Anthony Parker
Aurora, CO
My Blog: cherokee scrubs
By Daniel Go on Apr 18, 2011
Same here @Anthony Parker, I wish our country could find a way to get out the way spending a lot just to pay debt services. It’s really a big waste.
By Daniel Go on Apr 19, 2011
This article provides us a very great inspiration on dealing with the debt aspect of every nation’s economy. I’m sure it’s greatly affecting because you’re paying for something you are actually not able to utilize at all. In the long run, I agree with Mr. Anthony Parker, with further tax increase, hopefully this problem could be solved.
Best regards,
Daniel
Shisha guy
website: Hookahset.com