How Impressed Are You With The Canadian 2016 Federal Budget?
This is one budget that a lot more people were anxiously waiting to see than perhaps those that had taken place previously. This is because of all of the promises that were made on the campaign platform by Prime Minister Trudeau.
There is no doubt that this budget is far different than many that we have seen in the recent past. History shows that the Liberals in the past were far more prudent when it came to money management and cutbacks. This government that is now in power is taking a totally different approach which seems to be one of spend, spend, spend. While this is exciting for all of those that that it is going to effect what we cannot lose sight of is that spending means paying back and the deficit is going to be quite substantial.
The big question is can we really spend ourselves out of our problems? The whole concept here of this budget is substantial spending to correct the stagnant state that this country is in.
The priority of this budget is all focusing around growth. The highlights are the tax cuts that are being put in place for the middle class and there was good news when it came to benefits for those that have children.
Over all this is a budget that shows every indication that this government is prepared to move forward and not just sit and wait and see. For some it may seem that the government is looking at the here and now and perhaps forming a tunnel vision, which when looking at the budget in its totality paints a very different picture. The Liberal government is focusing on building a stronger future over the long term but is taking immediate steps to do so. The two main priorities of this budget is growing the middle class and investing in the economy.
When reviewing the budget that there are two main categories to look at one is the spending that is going to take place and what it is going to do to the deficit and the other is what the benefits is it going to bring to the Canadian people now.
One of the most significant benefits is the Canada Child benefit that is set to start in July 1st. These are going to be monthly payments that will be tax-free. What it means is that families at that have a child under the age of six will receive $6,400 a year and for those between the ages of 6 to 18 they will receive $5,400. However there is going to be a cap on this where claw backs will take place for those households that bring in an income of over $30,000 and any family that is bringing in over $190,000 will not receive the Canada Child benefit. The one drawback to the budget is the children’s arts and fitness tax credits will be phased out by 2017.
For the unemployed there will be some changes in the EI and of course there has been a good amount of money attributed for infrastructure. The indigenous people are finally going to get some relief and there is no doubt that this is a government that is listening to their needs.
Student grants are also receiving a shot of money with a 50% increase in grants up to $3,000 for low income families and $1,200 for middle income students. For seniors that are on the guaranteed income supplement this will be increased. There is also provisions are made for the veterans.
Most often when individuals are looking at the latest budget they want to zero in on what is most applicable to them but it is important to look at the budget in its totality so one gets a clear picture of the financial situation of progress that the country is going to be in.