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If passed, these new budget measures are expected to cost $19.7 billion in this fiscal year and over the next two years. The Liberals and NDP both announced they would not support this budget however the Bloc Québécois indicated its party would back the Tories' fiscal plan.
Environmental initiatives
• Extending the gas tax fund to municipalities to encourage mass transit.
• $1.5 billion to the ecoTrust to combat carbon emissions.
• A new green levy on gas-guzzling passenger cars coupled with new rebates toward the purchase of fuel-efficient and hybrid cars.
• Phasing out of a tax incentive for the oilsands.
• $2 billion over seven years for renewable fuels.
• A national water strategy worth $93 million to improve the quality of lakes, rivers and oceans.
Initiatives for Canadians
• Money for the working poor to help keep them off social assistance.
• The creation of a registered disability savings plan to provide financial security for the severely disabled.
• $6 million to combat the sexual exploitation of children.
• $10 million for seniors.
• Returning $10 million to the Status of Women program.
• A new child tax credit worth up to $310 per child under 18.
• Another $1 billion for farmers over the next two years.
Health care
• Free MedicAlert bracelets for children with serious illnesses.
• $612 million to be allocated before the end of this fiscal year for patient wait times.
• $20 million over two years for patient wait time pilot projects.
• $300 million into a trust fund for the HPV vaccine, which protects girls and young women from cervical cancer.
• $10 million over two years to create a mental health commission.
First Nations
• $300 million for aboriginal housing.
• $14.5 million over two years for aboriginal justice programs.
• $35 million over two years to get more natives into the labour force.
• $20 million over two years for native fishermen in Quebec and Atlantic Canada.
Culture
• Creating a national trust to foster private investment in preserving land, buildings and artifacts. $5 million over two years.
• $52 million to the Francophone summit in Quebec City in 2008.
Federal-provincial money
• $39 billion over seven years to the provinces and territories.
• Increased money for post-secondary education.
• More money for child-care spaces.
• More money for labour market training.
• More money for infrastructure.
The knowledge economy
• $600 million over two years for science and technology, research and development and centres of excellence.
• $415 million in changes to the registered education savings plan.
Defence and security
• $20 million for two years for a stress injury clinic for Canadian Forces and their families.
• $20 million next year for veterans.
• $64 million over two years for a new anti-drug strategy which will combat illegal drug production, reduce illegal drug use and treat dependency.
• Improved screening of those who apply for firearms licences, including in-person interviews.
• More money for spies.
• More money to repair prisons.
Quirky items
• $1 million to encourage youth to play heritage sports, such as three-down football and lacrosse.
• Increases to the amount that truck drivers can deduct for meals while on the road.
• $6 million for scrappage. This is a fund to get pre-1995 cars off the road.
• Doubling the value of goods Canadians can bring back tax free after 48 hours to $400.
• $15 million to entice foreign convention tourism to Canada.
Other links
http://www.cbc.ca/ca...udget-main.html
http://www.theglobea...0/BNStory/Front
Some notable items;
- A "tax-back guarantee" — a plan to legislate the return of money the government saves in interest payments on the federal debt to individual Canadians, in the form of personal income-tax reductions.
- A $2,000 tax credit for each child under 18 years old.
- A change to when people must convert their RRSPs into RRIFs. The conversion would take place no later than when the holder turns age 71 rather than the current age 69.
- The budget does not include broad-based income splitting, something that Flaherty did not explicitly rule out in the weeks leading up to budget day.
- Pension income splitting for seniors, which was announced on Oct. 31, at the same time as the Conservatives' tax on income trusts, was included in the budget.
- Another increase to the meal allowance for transport employees.
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Highlights of the 2007 Federal Budget
MultiQuote
#2
RL Tax Joe 
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Posted 19 March 2007 - 09:47 PM
I think there are some good items in that budget. Ontario budget comes out on Thursday. We'll see what they come up with. My guess, there will be talk to sales tax harmonization. Ontario seems to be trying to get away from administration items.
#3
JohnV
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Posted 20 March 2007 - 01:54 PM
Don't forget two biggies for small business
Accelerated write off of certain manufacturing equipment 50% straight line, 50% rule so 25, 50, 25 and 100% write off over three years....
AND they bumped the exemption for the sale of qualified SB shares to 750K from 500K
along with smaller items dealing with remittance thresholds, who can file GST annually etc...
Accelerated write off of certain manufacturing equipment 50% straight line, 50% rule so 25, 50, 25 and 100% write off over three years....
AND they bumped the exemption for the sale of qualified SB shares to 750K from 500K
along with smaller items dealing with remittance thresholds, who can file GST annually etc...
#4
unknown
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Posted 20 March 2007 - 04:55 PM
Get the whole scoop:
Tax measures supplementary info:
http://www.budget.gc...ae.html#capital
Notice of ways and means motions
http://www.budget.gc.../bp/bpa5be.html
and a quick summary:
CGA-Canada's 2007 Federal Budget Response
Tax Measure Highlights
Individuals and families
$2,000 non-refundable tax credit for children under 18 years of age ($310 per child max) claimable by either parent
Spousal tax credit (also available for wholly dependent relative) increased to basic personal amount, will be up to $10,000 by 2009
Confirmed $1,000 increase to age credit
Confirmed pension income splitting between spouses
Increased availability of public transit tax credit; weekly passes and electronic cards now qualify
Lifetime capital gains exemption for farmers, fishers and incorporated small business increases to $750,000 for dispositions after March 19, 2007 – CGE will be essentially pro-rated for the 2007 year
Working income tax benefit (WITB) – refundable tax credit for each dollar of earned income in excess of $3,000 up to a maximum of $500 for individuals and $1,000 for families
WITB for persons with disabilities – persons eligible for the Disability Tax Credit (DTC) and have earned at least $1,750, income will be supplemented up to $250 and reduced by net family income in excess of $12,833 for individuals and $21,167 for families
Registered disability savings plan – based on RESP design – i.e. – investment income will accrue tax free – lifetime maximum of $200,000 – will qualify for matching grants (Canadian disability savings bonds paid up to $1,000 paid annually when family income does not exceed $20,833, lifetime limit of $20,000) — capital will not be taxed on withdrawal, only the income portion
Elimination of capital gains tax on donations of publicly-listed securities to private foundations
Annual limit of $4,000 for RESP contributions is eliminated, lifetime contribution increased to $50,000
Canada education savings grants up from $400 to $500
Full exemption of all scholarship income (i.e. elementary and high school)
Northern residents deduction expanded to include Municipality of MacKenzie in BC
Meal expenses for long haul truckers (specific definition of long haul drivers) from 50 per cent to 80 per cent deductible – over 5 years – to 60 per cent after March 19, 2007, 65 per cent, 70 per cent and 75 per cent during 2008, 2009 and 2010, respectively; anything after 2010 will be 80 per cent
Beginning 2008 phased in retirement – employees can received up to 60 per cent of accrued pension benefit as well as continue to accrue additional pensionable service – workers must be at least 55 and otherwise entitled to receive the pension without incurring an early retirement reduction
Age limit for maturing registered pension plans (RPP’s) and registered retirement savings plans (RRSP’s) raised from 69 to 71 years
Qualified investments for registered savings vehicles expanded
Extend 15 per cent mineral exploration tax credit another year to March 31, 2008
Double the amount of goods that can be imported duty free from $200 to $400 after 48 hours
$3,000 net personal tax threshold under which individuals do not have to remit installments (2008 and subsequent years)
Canada-US tax treaty – elimination of withholding tax on interest – other measures as well
$2,000 per vehicle to buyer of fuel efficient vehicles – “green levy” for gas guzzlers, scrappage programs for older vehicles
Business
Manufacturing and processing
Capital cost allowance (CCA) for buildings used in M and P - CCA will increase to 10 per cent from 4 per cent - required usage is 90 per cent must be M and P
CCA on machinery and equipment purchased after March 19, 2007 and before 2009 will qualify for CCA rates that will allow for a complete w/off over two years (50 per cent straight line)
All business
CCA for computers up from 45 per cent to 55 per cent
Non-residential CCA rates for buildings increased from four per cent to six per cent (must be 90 per cent non-residential)
Buildings will have to be placed into a different class or the current treatment will continue
Accelerated CCA rates for clean and renewable energy equipment
25 per cent tax credit to businesses that create new childcare spaces up to a maximum of $10,000
Reduce federal paper burden by 20 per cent by November 2008
Quarterly corporate income tax installments for qualifying Canadian-controlled private corporations (CCPC’s) (taxable income of preceding year cannot exceed $400,000)
Increase corporate income tax threshold where companies can remit quarterly to $3,000
$3,000 average monthly withholdings below which a business can remit quarterly rather than monthly
$3,000 net GST threshold below which business can remit annual returns
$1.5 million taxable supplies (sales) below which business can remit annually
Temporary foreign worker program improvements to reduce delays and respond to shortages
Agriculture
Double the amount of interest free advances available to farmers
Replace top tier of Canadian Agricultural Income Stabilization program with new savings program to be shared 60:40 with the provinces – government contributions and income earned on government contributions will only be taxable to farmers upon withdrawal
There will be two separate payments to producers – one time payment into the new savings accounts and an immediate payment to assist with rising production costs
Tax measures supplementary info:
http://www.budget.gc...ae.html#capital
Notice of ways and means motions
http://www.budget.gc.../bp/bpa5be.html
and a quick summary:
CGA-Canada's 2007 Federal Budget Response
Tax Measure Highlights
Individuals and families
$2,000 non-refundable tax credit for children under 18 years of age ($310 per child max) claimable by either parent
Spousal tax credit (also available for wholly dependent relative) increased to basic personal amount, will be up to $10,000 by 2009
Confirmed $1,000 increase to age credit
Confirmed pension income splitting between spouses
Increased availability of public transit tax credit; weekly passes and electronic cards now qualify
Lifetime capital gains exemption for farmers, fishers and incorporated small business increases to $750,000 for dispositions after March 19, 2007 – CGE will be essentially pro-rated for the 2007 year
Working income tax benefit (WITB) – refundable tax credit for each dollar of earned income in excess of $3,000 up to a maximum of $500 for individuals and $1,000 for families
WITB for persons with disabilities – persons eligible for the Disability Tax Credit (DTC) and have earned at least $1,750, income will be supplemented up to $250 and reduced by net family income in excess of $12,833 for individuals and $21,167 for families
Registered disability savings plan – based on RESP design – i.e. – investment income will accrue tax free – lifetime maximum of $200,000 – will qualify for matching grants (Canadian disability savings bonds paid up to $1,000 paid annually when family income does not exceed $20,833, lifetime limit of $20,000) — capital will not be taxed on withdrawal, only the income portion
Elimination of capital gains tax on donations of publicly-listed securities to private foundations
Annual limit of $4,000 for RESP contributions is eliminated, lifetime contribution increased to $50,000
Canada education savings grants up from $400 to $500
Full exemption of all scholarship income (i.e. elementary and high school)
Northern residents deduction expanded to include Municipality of MacKenzie in BC
Meal expenses for long haul truckers (specific definition of long haul drivers) from 50 per cent to 80 per cent deductible – over 5 years – to 60 per cent after March 19, 2007, 65 per cent, 70 per cent and 75 per cent during 2008, 2009 and 2010, respectively; anything after 2010 will be 80 per cent
Beginning 2008 phased in retirement – employees can received up to 60 per cent of accrued pension benefit as well as continue to accrue additional pensionable service – workers must be at least 55 and otherwise entitled to receive the pension without incurring an early retirement reduction
Age limit for maturing registered pension plans (RPP’s) and registered retirement savings plans (RRSP’s) raised from 69 to 71 years
Qualified investments for registered savings vehicles expanded
Extend 15 per cent mineral exploration tax credit another year to March 31, 2008
Double the amount of goods that can be imported duty free from $200 to $400 after 48 hours
$3,000 net personal tax threshold under which individuals do not have to remit installments (2008 and subsequent years)
Canada-US tax treaty – elimination of withholding tax on interest – other measures as well
$2,000 per vehicle to buyer of fuel efficient vehicles – “green levy” for gas guzzlers, scrappage programs for older vehicles
Business
Manufacturing and processing
Capital cost allowance (CCA) for buildings used in M and P - CCA will increase to 10 per cent from 4 per cent - required usage is 90 per cent must be M and P
CCA on machinery and equipment purchased after March 19, 2007 and before 2009 will qualify for CCA rates that will allow for a complete w/off over two years (50 per cent straight line)
All business
CCA for computers up from 45 per cent to 55 per cent
Non-residential CCA rates for buildings increased from four per cent to six per cent (must be 90 per cent non-residential)
Buildings will have to be placed into a different class or the current treatment will continue
Accelerated CCA rates for clean and renewable energy equipment
25 per cent tax credit to businesses that create new childcare spaces up to a maximum of $10,000
Reduce federal paper burden by 20 per cent by November 2008
Quarterly corporate income tax installments for qualifying Canadian-controlled private corporations (CCPC’s) (taxable income of preceding year cannot exceed $400,000)
Increase corporate income tax threshold where companies can remit quarterly to $3,000
$3,000 average monthly withholdings below which a business can remit quarterly rather than monthly
$3,000 net GST threshold below which business can remit annual returns
$1.5 million taxable supplies (sales) below which business can remit annually
Temporary foreign worker program improvements to reduce delays and respond to shortages
Agriculture
Double the amount of interest free advances available to farmers
Replace top tier of Canadian Agricultural Income Stabilization program with new savings program to be shared 60:40 with the provinces – government contributions and income earned on government contributions will only be taxable to farmers upon withdrawal
There will be two separate payments to producers – one time payment into the new savings accounts and an immediate payment to assist with rising production costs
#5
unknown
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Posted 20 March 2007 - 05:00 PM
Did you guys notice:
The old personal exemptions are back!
The spousal credit will now be A LA the Alberta method
The government is considering the T3 deadline?
Instalment requirement upped to $3,000
Computer CCA up to 55%
Increase in Capital gains deduction
The old personal exemptions are back!
The spousal credit will now be A LA the Alberta method
The government is considering the T3 deadline?
Instalment requirement upped to $3,000
Computer CCA up to 55%
Increase in Capital gains deduction
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