Canada’s Liberal governement gives its Fall Economic Statement where the budget shortfall is now expected to be $19.9 billion.
Canada’s Liberal governement gives its Fall Economic Statement, where the budget shortfall is now expected to be $19.9 billion, down from $28.5 billion expected during the spring budget.
“As the economy grows, we need to make sure the benefits are shared with the middle class and those working hard to join it. And as we invest directly in Canadians and their families, we have an immediate impact on the economy.”
Bill Morneau, Minister of Finance
With the Fall Economic Statement, the Government will:
- Strengthen the Canada Child Benefit (CCB) by making annual cost of living increases starting in July 2018—two years ahead of schedule. For a single parent of two children making $35,000, a strengthened CCB will contribute $560 in the 2019–20 benefit year towards the cost of raising his or her children. That means more money, tax-free, for books, skating lessons or warm clothes for winter. The added confidence the CCB brings to families has been shown to have an immediate impact on economic growth.
- Put more money in the pockets of low-income workers—including families without children and the growing number of single Canadians—by further enhancing the Working Income Tax Benefit (WITB) by an additional $500 million per year, starting in 2019. This enhancement will be in addition to the increase of about $250 million annually that will come into effect in that year as part of the enhancement of the Canada Pension Plan. These two actions will boost the total amount the Government spends on the WITB by about 65 per cent in 2019, increasing benefits to current recipients and expanding the number of Canadians receiving support.
- Help small businesses invest, grow and create jobs by lowering the small business tax rate to 10 per cent, effective January 1, 2018, and to 9 per cent, effective January 1, 2019. This will provide a small business with up to $7,500 in federal corporate tax savings per year to reinvest in and grow their business.
- Make important changes to the tax system that will ensure Canada’s low corporate tax rates go towards supporting businesses, not to providing unfair tax advantages to the top 1 per cent wealthiest Canadians.
Source: Department of Finance Canada
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