Finance Minister Jim Flaherty tabled his fifth budget in Parliament today. There is plenty of print, broadcast and online coverage of the budget in the mainstream press, but if you are so inclined, you can read the entire 451-page document here. If you are only interested in the bits that directly affect your pocketbook, feel free to skip to the pages indicated below:
- As expected the budget does not contain any new taxes or any additional tax relief. The budget document says that it delivers “$3.2 billion in personal income tax relief” but pretty much all of the tax measures are already in the books. (Page 47).
- While a hike in Employment Insurance premiums was expected, the Government is maintaining a freeze of premium rate at $1.73 per $100 of insurable earnings to the end of 2010. As already announced, EI premiums will be set from 2011 onwards by an independent arms length Crown corporation. (Page 51).
- The budget proposes a number of initiatives to close loopholes in the tax system. (Page 101).
- The Government is proposing to establish a federal securities regulator within the next three years. (Page 113).
- The Universal Child Care Benefit (UCCB) will be taxed in the hands of an Eligible Dependent for single-parent families. As the dependent child is unlikely to pay taxes, this measure will provide up to $168 in tax relief for single parents with one child under six in 2010. (Page 128).
- Families of children with disabilities can carry forward the Registered Disability Savings Plan (RDSP) grants and bonds for 10 years. (Page 129).
- The RRSP or RRIF proceeds of a deceased person can be transferred on a tax-free basis to the RDSP of a financially dependent disabled child. (Page 130).
- Good news for many Ottawa-area residents: The budget provides relief to taxpayers who elected to defer their taxes on stock option exercises.
That’s about it. The rest of the hefty document deals with such matters as a plan to reduce the deficit, support for ship building and (I couldn’t resist this) a Red Tape Reduction Commission to cut red tape.