Comments on: What to Expect in Budget 2009?

By: Canadian Learning Passport: Check the fine print « MoneySense

Canadian Learning Passport: Check the fine print « MoneySense — Thu, 07 Apr 2011 01:09:20 +0000

[...] What to Expect in Budget 2009? [...]

By: Canadian Capitalist

Canadian Capitalist — Thu, 29 Jan 2009 17:43:43 +0000

Thicken: It does appear that the budget will pass, so the odds are the changes are a done deal. The Conservatives have added a lot of tax credits — child’s fitness credit, transit credit, textbook credit etc. come to mind. All this has resulted in extra paperwork… keeping receipts and bus passes around. And taxpayers should keep track of these changes so that they don’t throw out the receipts. IMO, it is far much better to provide straightforward tax cuts.

By: TonyR

TonyR — Tue, 27 Jan 2009 20:28:51 +0000

What’s the federal NDP saying? “Life sucks” ?

By: nobleea

nobleea — Tue, 27 Jan 2009 16:19:56 +0000

since when are tax cuts a good stimulus? their impact lags quite a bit.
if anything, they should raise the GST back to where it was before. it doesn’t make a big difference to most people, but it’s an extra twenty some billion a year. sales taxes are far more effective than income taxes. it’s also simple and scales up with consumption.

infrastructure spending is good, and necessary, but also delayed quite a bit. i’m sure there are many projects across the country that are designed and planned and waiting for the commitment, but they still would have to be tendered, reviewed, approved, material ordered. it would be a year before any of them could start.

By: Canadian Capitalist

Canadian Capitalist — Tue, 27 Jan 2009 15:36:16 +0000

Tony: The Tories have been on a spending spree — the three years that they have been in government have seen significant increases in spending. But the Liberal government before it did the same thing. It’s true that both stripes paid down the debt with any surplus but they kept spending the surplus for the next year. But, unfortunately, that’s how these things go. Governments want to get re-elected, parties want to win elections and budgets are usually laden in pork, especially when they are flush with cash.

By: Thicken My Wallet

Thicken My Wallet — Tue, 27 Jan 2009 15:32:25 +0000

I would caution taking the budget proposals introduced in the speech as the final budget. Given we have a minority government, there may be amendments to certain provisions of the budget in order to obtain the consent required to pass the budget.

Typically, and this goes under the radar, a budget is introduced but not passed until months later as it goes through committee. In a majority government, 2nd and 3rd readings are really the parties going through the motions of the process.

In a minority government, there will be a lot of haggling so expect this to be more drawn out than usual.

CC- if you speak to tax lawyers, they love the minority government because the tax code has not gotten more complicated. Other than the TFSA, there has been little technical amendments to the Income Tax Act since minority governments cannot push through sweeping changes.

By: Leading Edge Boomer

Leading Edge Boomer — Tue, 27 Jan 2009 15:02:28 +0000

Yep–I do see the irony Tony R.

The reality is that even conservative governments are not willing to face the wrath of the public. The collective public does not want to endure the pain of letting things run their course . They always want a quick fix now and we will worry about the future later. A government that does not respond with a quick fix knows that it will not be re-elected.

Keynesian economics have taken hold, and both conservative and liberal governments practice it,worldwide . (Run deficits when the economy tanks – start paying down debt when the economy soars–run deficits when the economy tanks again). Problem is we always run up debt in the hard times, faster than we can pay it down in the good times.

Of course if you are a Liberal partisan , you can always fall back on the old saw that: “Tory times are hard times.”

By: TonyR

TonyR — Tue, 27 Jan 2009 14:34:08 +0000

Does anyony else see the irony of a “fiscally responsible” conservative government introducing budget deficits so large that they’ll wipe out 10 years worth of “left-wing” Liberal debt reduction in less than 5 years?

By: Leading Edge Boomer

Leading Edge Boomer — Tue, 27 Jan 2009 13:34:24 +0000

A simple way to give a tax cut is to raise the amount of the Basic Personal Exemption once again. Simple, direct and can take immediate effect to put spending money in peoples pockets.

The Torys have it in their platform to raise the Pension Income Deduction to $2500 in 2010. They could move that ahead by a year to benefit seniors.

The rumoured tax credit for Home Renovations done by a certain date might create some immediate spending to boost the economy.

And I have a young neighbor who is in trade school working toward his plumber’s credentials. He probably would like your monkey wrench credit idea CC.

By: Phil S

Phil S — Tue, 27 Jan 2009 03:01:48 +0000

I personally wouldn’t hold my breath for the tax cuts. There may be something, but like the 2% reduction in the GST and the $5000 limit on the TFSA, it will be too little too late in terms of stimulating the economy. I am betting that it will be something symbolic that they will totally blow out of proportion in the media and in partisan advertisements.