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Some highlights about today's budget:

GST to be cut to 6% starting July 1st, The move is expected to cost the government $3.52 billion this year and $5.17 billion in 2007.

The tax rate on the lowest tax bracket will go to 15.5 per cent on July 1, after the Liberals cut it from 16 per cent to 15 per cent in their fiscal update in November.

Canada employment benefit that will offer working people a $250 tax credit for 2006 to cover work-related expenses, such as home computers, uniforms and supplies. The credit rises to $1,000 for the 2007 tax year.

The government also followed through on another of its five promises by introducing a $1,200-a-year child-care benefit for all children under the age of six.

Canada's military will see its budget increased by $5.3 billion over the next five years, including money to speed up recruitment of 13,000 regular armed forces and 10,000 more reservists.



Full Story Here

I am watching CBCnews right now and Jum Flahrety is being interviewed and asked questions from Canadians. It seems his answer to most questions is " you'll save money from the 1 point reduction in the GST " I really enjoyed that answer when someone asked him about Harper's comment about the federal government taking advantage of Canadians with the gas tax and that he would freeze taxes on gas at 85 cents.....

nass,May 2 2006, 09:40 PM Wrote:I am watching CBCnews right now and Jum Flahrety is being interviewed and asked questions from Canadians. It seems his answer to most questions is " you'll save money from the 1 point reduction in the GST " I really enjoyed that answer when someone asked him about Harper's comment about the federal government taking advantage of Canadians with the gas tax and that he would freeze taxes on gas at 85 cents.....
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Yeah, I'll save money. But less than I paid on my income tax...

the GST makes no sense to me, i was figuring out what my new wheels would cost if the GST was 6%, it was only about 18 dollars in savings. it truly will only help the big ticket items.

FocusGuy7476,May 2 2006, 10:13 PM Wrote:the GST makes no sense to me, i was figuring out what my new wheels would cost if the GST was 6%, it was only about 18 dollars in savings. it truly will only help the big ticket items.
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Exactly why the new budget caters to the rich. Baby steps to a Neo-con nation.

Call me pessimistic :(

Cheffy,May 2 2006, 10:20 PM Wrote:

FocusGuy7476,May 2 2006, 10:13 PM Wrote:the GST makes no sense to me, i was figuring out what my new wheels would cost if the GST was 6%, it was only about 18 dollars in savings. it truly will only help the big ticket items.
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Exactly why the new budget caters to the rich. Baby steps to a Neo-con nation.

Call me pessimistic :(
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I don't think so, I think a great big leap in budget for the military was acheaved today. We will be able to get more troops and the new and proper equip. required for us to function properly, effectively and safely at home and especially abroad: So there are no more special flights to Trenton with more uniformed HEROS for families to lay to rest.

We can't win them all when it comes to budgets. Things got to be sacrificed. I'm glad that the military and ultimately the people of Canada didn't suffer by the Government not giving more monies or even doing cutbacks. Harper kept his election promise by giving more money and attention to our national defense; and there will be more to come (in a good way) MARK MY WORDS.

PIGEON1,May 2 2006, 11:15 PM Wrote:I don't think so, I think a great big leap in budget for the military was acheaved today. We will be able to get more troops and the new and proper equip. required for us to function properly, effectively and safely at home and especially abroad: So there are no more special flights to Trenton with more uniformed HEROS for families to lay to rest.

We can't win them all when it comes to budgets. Things got to be sacrificed. I'm glad that the military and ultimately the people of Canada didn't suffer by the Government not giving more monies or even doing cutbacks. Harper kept his election promise by giving more money and attention to our national defense; and there will be more to come (in a good way) MARK MY WORDS.
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I'm glad to see the military has received increased support, and I agree with many other aspects of the budget. Just not a fan of the tone being set; making a tax cut that primarily benefits the rich (not to mention the drop in corporate taxes), and a tax hike (albeit however small) that primarily hurts the lowest income bracket. A $100 annual increase isn't much to a middle class tax payer, but means the difference of one child being unable to eat for one month to a single mother working at Walmart. :(

Not to mention that $1200 for daycare is peanuts, about 35 days of care. Which is better than nothing, but I'd rather see that money sunk directly into providing government subsidised daycare. Beer and popcorn? Crude comment, but probably not inaccurate in many cases. :rolleyes:

No extra tax on booze (good)

Tax refunds for public transit (welcome to the 21st century)


I have ALWAYS been a supporter of giving back to the people who use public transit, not because I do, but because it's a great way to keep people off the roads!

ANTHONYD,May 3 2006, 08:44 AM Wrote:No extra tax on booze (good)

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I heard they increased "SIN" taxes on cigarettes and booze on CBC.

I got my information from the morning paper.

I could be wrong.

ANTHONYD,May 3 2006, 09:57 AM Wrote:I got my information from the morning paper.

I could be wrong.
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Me too. I can't find anything on the CBC website. I only heard about it on the news last night.

FEDERAL BUDGET HIGHLIGHTS

- Lowest income-tax rate rises half a percentage point to 15.5 per cent effective July 1.

- GST cut by one percentage point to six per cent starting July 1.

- Corporate income-tax rate drops to 19 per cent from 21 per cent by 2010; federal capital tax eliminated retroactive to Jan. 1; corporate surtax gone as of Jan. 1, 2008.

- 12 per cent small-business tax rate drops to 11 per cent by 2009.

- Taxable $100 monthly allowance for each child under age six.

- Tax credits for textbooks, transit passes, tools and youth sport.

- $500 million boost in aid for agriculture this year, plus a $1-billion transition fund for farmers.

- $1.4 billion more this year for policing, border security and public safety.

- $1.1 billion extra over two years for the military.

- Climate-change spending drops to $2 billion over five years for a "Made in Canada" program. Extra cash promised by the

former Liberal government to be "reallocated."

- Up to $3.3 billion in new funding to provinces to address short-term needs.

- $5.5 billion over four years for a highways and border infrastructure fund.

- $1 billion over five years for pandemic preparedness.

- $450 million extra for native housing, education, water and families. No mention of the $5 billion promised by the former Liberal government under the Kelowna aboriginal accord.

- $3 billion a year committed to paying down the debt, currently estimated at $486 billion.


So, in short:

We'll have a better military to clean up after the USA with. Great :rolleyes: Hopefully we remain the world-renowned peacekeepers that we are, and not an extension of US policy via "jumping the UN gun" syndrome.

The lowest income bracket gets taxed more. Those people need every penny they make... why take more away?

The $100/child/month is TAXABLE. HAHAHAHHAHAA. That's all I have to say to that. Suckered. The "old" system of government-run funding to subsidized daycare was much better, because at least the money was being used for the purpose it was intended in its entirety!

Small business gets a break. Good. Small businesses are a vital part of our economy, creating jobs and filling niche market spots that big box / big name businesses won't touch.

Paying down the debt - GOOD THING. Well, at least there's a single ray of sunshine. The rest is spinster padding and fluff.

My source: http://www.nugget.ca/webapp/sitepages/cont...=News+%2D+Local

Corporate taxes dropping 2% - good thing. We're taxed to death in this country, as both business people and everyday employed Canadians.

GST drops 1% - I'd rather have more cash on my paycheque to reroute to RRSPs and other pension-related savings plans. It'll cost me $1 less on a $100 purchase. So I'll realize a $1000 savings after spending $100,000. Great. Less income tax or better structure to the RRSP-eligible funds please!

Also, no mention of Harper's capping of the fuel tax. They'll just ride the increasing pump prices as the cash cow to the future.

Cheffy,May 3 2006, 03:09 AM Wrote:

PIGEON1,May 2 2006, 11:15 PM Wrote:I don't think so, I think a great big leap in budget for the military was acheaved today. We will be able to get more troops and the new and proper equip. required for us to function properly, effectively and safely at home and especially abroad: So there are no more special flights to Trenton with more uniformed HEROS for families to lay to rest.

We can't win them all when it comes to budgets. Things got to be sacrificed. I'm glad that the military and ultimately the people of Canada didn't suffer by the Government not giving more monies or even doing cutbacks. Harper kept his election promise by giving more money and attention to our national defense; and there will be more to come (in a good way) MARK MY WORDS.
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I'm glad to see the military has received increased support, and I agree with many other aspects of the budget. Just not a fan of the tone being set; making a tax cut that primarily benefits the rich (not to mention the drop in corporate taxes), and a tax hike (albeit however small) that primarily hurts the lowest income bracket. A $100 annual increase isn't much to a middle class tax payer, but means the difference of one child being unable to eat for one month to a single mother working at Walmart. :(

Not to mention that $1200 for daycare is peanuts, about 35 days of care. Which is better than nothing, but I'd rather see that money sunk directly into providing government subsidised daycare. Beer and popcorn? Crude comment, but probably not inaccurate in many cases. :rolleyes:
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They did that to in a round about way make the richer people spend more because they see the savings. As the old saying goes "give a little to get a little."
What I mean is that these richer corperate type will spend that money they have saved and maybe a little more because the ywould have never seen that money with the old budget. This way they will still spend this money and now make a profit in there companies this way.

oh and the cons put an AXE to a few things the liberals had in place including the 5 billion dollar accord for the aboriginal peoples, they in turn set aside 430 million for it. Mind you this accord was signed by all provinces and was pretty much good to go. Harper also put an AXE to the 5 billion dollar Kyoto plan, instead they came up with a " made in Canada " solution which no doubt will reflect what Bush is doing down south, ( Bush is not a big fan of Kyoto ). Flahrety said there is about 630million in surplus from the budget and that he " thinks " the cons have a good budget and there is enough surplus/flex room to avoid a deficit.

I for one am not impressed at this budget, the only bright side for me is the military getting some money but other than that you really have to look closely at this budget to understand it, it's kinda deceiving and relies HEAVILY on the GST cut.

For example the $500 tax break for kids in sports. It's only good for the registration fees and only if they exceed $500. This employment tax break that's for employed people for $1000. You won't get $1000, you have to find your tax bracket, enter a formula and figure out what you'll get back. It's not anywhere near $1000 :) The CBC was going on last night about these " tax breaks " and giving you the low down. It came off to me as a scam more than anything.

NOS2Go4Me,May 3 2006, 02:32 PM Wrote:FEDERAL BUDGET HIGHLIGHTS

- $450 million extra for native housing, education, water and families. No mention of the $5 billion promised by the former Liberal government under the Kelowna aboriginal accord.

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well, that one hits a nerve. :angry:

Personally, even in dribs and drabs this budget shows me that the new government is serious about sticking to their stated priorities.

That's more than I can say for the last government, whose stated priorites (when they were stated) changed with every bloody opinion poll.

Saw the breakdown last night, in my case it looks to be about $9 a week difference to the good. Not a lot per se, but more at once than any other government gave me back :P

NefCanuck

I feel mixed about the budget, I'm happy to see a 1% tax break on the G.S.T. more so when it comes to seeing it at the pump, but at the same time going I wonder if my work will lower the prices when the tax break kicks in or just pocket it and not say anything about it to our customers.

NefCanuck,May 3 2006, 12:21 PM Wrote:That's more than I can say for the last government, whose stated priorites (when they were stated) changed with every bloody opinion poll. 
NefCanuck
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Not a fan of the no set opinion part, but at least changing plans based on what Canadians want represents a TRUE democracy. The USA model of giving them what the government thinks they need instead isn't exactly democratic. Sometimes the people of the nation know what's better for them than the people who tell them. ;) Sometimes not... :blink: