Brace Yourself For the Upcoming Budget
It really is ironic that when we are so caught up in the tax season with last year’s taxes that the government hits us with a new budget right in the middle of it. Now in all fairness that is not because they are trying to sneak in changes because we are too busy to pay attention to them. It’s because their new fiscal year begins on April 1st.
No matter how busy you are it is important to pay attention to the budget because it will most definitely affect you in some way, shape or form. Usually what happens in once it is released the news media will jump on the hot topics that it contains. What is not realized is that there is tons of other information regarding changes within the budget that most of us don’t pay attention to. Yet, some of these less recognized changes could have an impact on you.
As most have been aware our new government was elected on heavy promises of taxing the rich and helping the middle to low income. In some cases they have done this but perhaps to some extent this will not be recognized until you have done your taxes.
Some are forecasting that there may be an increase in the capital gains which could have a big impact on those that are into asset flipping especially in the housing market. Everyone knows that the Toronto housing market is spiralling out of control. The government is looking for ways to get a handle on this.
Whenever a new budget is coming out everyone naturally is concerned as to how it is going to directly affect them. The average taxpayer is concerned on a personal level. Those in business also have to be concerned as to what impact it will have on their businesses. However, the average tax payer should also be concerned about how new budgets impact business, because indirectly this affects the consumers.
There were some major concerns that private dental and health plans would be taxed but this seems to be an unnecessary worry as the Prime Minister has indicated this will not be the case.
Right now we are in a wait and see situation with the Federal budget. Don’t forget there are other levels of government that you also have to keep your eye on. What is happening at the provincial level has to be given strong consideration especially when it comes to hydro rates. Then there are a whole gambit of issues that need to be tracked when it comes to the Toronto municipal level. Somebody is going to have to pay for these grand plans of infrastructure and transportation, and it doesn’t take much guessing to determine who is going to foot these costs.