Canadian Budget 2007:
The Conservative Government has just tabled their newest budget; the budget has a lot of new spending initiatives mainly aimed at the provincial governments for infrastructure, education and health care.
The Federal Government has tried to meet the requests of many special interest groups which appears to be a strategy by the Conservatives to divide and conquer the opposition in the next election. If the opposition parties defeat the Government on this budget they will be penalized by Canadians who do not want to go to the polls again so soon.
The Conservatives have made some headway on the so called fiscal imbalance by offering a substantial increase in the transfer payment system which will potentially become more flexible and can be tailored to the individual provinces requirements.
The budget does have one interesting change that is the ability of a family to file jointly which will eliminate the marriage penalty. Now Canadian families will be treated equally regardless of whether they are a one income or two income families, reducing the penalty forced on a family where one spouse stays home to care for the children.
I am a bit surprised that the budget did not deal with any changes to the capital gains taxes as many had expected and the government had hinted at, also that the Government decided to reduce the investment incentive for the development of the oil sands projects.
The Government is going to apply $9.2 billion to debt reduction but has increased spending by a considerable amount. The Government did not change the current structure of the tax brackets which will hurt the average taxpayer over time.
Generally the budget meets a lot of the concerns expressed by Canadians recently, it does not dramatically change the average Canadians tax bill and it will not add any impetus for increased investment but that being said it does not hinder the economy either so that economic growth should continue to be robust going forward.
For more information go to www.campbellreport.com
The Federal Government has tried to meet the requests of many special interest groups which appears to be a strategy by the Conservatives to divide and conquer the opposition in the next election. If the opposition parties defeat the Government on this budget they will be penalized by Canadians who do not want to go to the polls again so soon.
The Conservatives have made some headway on the so called fiscal imbalance by offering a substantial increase in the transfer payment system which will potentially become more flexible and can be tailored to the individual provinces requirements.
The budget does have one interesting change that is the ability of a family to file jointly which will eliminate the marriage penalty. Now Canadian families will be treated equally regardless of whether they are a one income or two income families, reducing the penalty forced on a family where one spouse stays home to care for the children.
I am a bit surprised that the budget did not deal with any changes to the capital gains taxes as many had expected and the government had hinted at, also that the Government decided to reduce the investment incentive for the development of the oil sands projects.
The Government is going to apply $9.2 billion to debt reduction but has increased spending by a considerable amount. The Government did not change the current structure of the tax brackets which will hurt the average taxpayer over time.
Generally the budget meets a lot of the concerns expressed by Canadians recently, it does not dramatically change the average Canadians tax bill and it will not add any impetus for increased investment but that being said it does not hinder the economy either so that economic growth should continue to be robust going forward.
For more information go to www.campbellreport.com
posted by Grant | 3:36 PM
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