Federal Budget 2016 - What You Need to Know
On March 22, 2016, the first budget of Finance Minister Bill Morneau was tabled, with a focus on supporting the middle class. Based on a weaker economic outlook largely due to continued low oil prices, the budget announced an increase in spending, with significant amounts dedicated to the areas of public transit, green and social infrastructure. This is expected to result in a forecasted deficit of $29.4B for 2016-2017. In addition to greater government spending to try and stimulate economic growth, and in response to the current economic slowdown, the budget announced changes to the Employment Insurance (EI) system to reduce the period of time that out-of-work Canadians are without income, in light of growing unemployment rates.
There were also some surprises that came with the release of the budget. The government abandoned its election pledges to increase the taxation of stock options, continue to reduce the small business corporate income tax rate, as well as provide lifelong pensions to injured veterans.
Click here to learn more about some of the more notable changes proposed by the budget that are expected to affect taxpayers.
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