Our Minister of Finances delivered his 2013-2014 in the House of Commons this afternoon.
Frankly I have not seen much to affect Canadians in their daily life. The best analysis I have seen so far is from BMO:
Canadian Businesses Stand to Benefit from Federal Budget Budget extends support to Manufacturing, Skills Training
TORONTO, ONTARIO--(Marketwire - March 21, 2013) - Today's federal budget, released today by Finance Minister Jim Flaherty, provides new support for manufacturing, skills training and infrastructure, according to BMO Commercial Banking.
Key initiatives include:
Support for manufacturing: $1.4 billion, two-year extension of the accelerated capital cost allowance. $920 million in renewed funding for the Economic Development Agency for Southern Ontario. Canada Job Grant. To help address skills shortages, Ottawa is introducing this grant, where they will pick up a third of the $15,000 available per person for training (along with the provinces and businesses). Infrastructure funding of about $5 billion per year maintained for next decade.
"The extension of the accelerated capital cost allowance, in conjunction with the continuing strength of the Canadian dollar, gives manufacturers the opportunity to invest in their operations and improve productivity," said Steve Murphy, Senior Vice President, Commercial Banking, BMO Bank of Montreal. "Combined with the Canada Job Grant and infrastructure funding, this budget is good news for Canadian business. We congratulate the Minister for his efforts to support Canadian firms."
======================================================
It is ironic to see a senior vice-president of BMO "congratulate the Minister for his efforts" considering the Minister of Finances was not very happy with BMO's decision a few weeks ago to promote residential mortgage at a promotional rate of 2.99% .
The federal government is not raising taxes in this budget but many Canadians will end up paying more taxes due to "technical changes" presented in the budget. One of these changes may affect some eBay sellers.
Many sellers run their mail order operation (eBay, website, etc...) as a small corporation. They pay themselves (and sometimes other members of their family) with a salary and often with a dividend from their profits.
The new budget effectively will increase the income tax payable on those dividends (reduction of the gross up and dividend tax credit). The change is effective in 2014.
It is only one of the many small "technical changes" included in the budget.
No tax increases folks, just a few technical adjustments!
Like the one forcing hospitals to add HST or GST to the parking lot fees (currently exempt from taxes)! Everyone working or visiting hospitals and using the parking lot will pay a few more cents in taxes.
No tax increases folks, just a few technical adjustments!
