Federal Budget 2007

[RedHot25]

http://www.cbc.ca/canada/story/2007/...dget-main.html

In his second budget for Stephen Harper's minority government, Flaherty promised more money for the provinces and territories, incentives for environmental initiatives and a string of small personal finance breaks for Canadians.

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They include:

• A new $2,000 tax credit for each child under 18 years old. The maximum benefit under the plan will be $310 per child.
• A Working Income Tax Benefit of up to $500 a year per low-income individual or $1,000 per family to help reduce the number of people using welfare.
• An end to the marriage penalty for single-earner families.

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One of Flaherty's chief proposals is an extra $1.5 billion for the upcoming fiscal year aimed at correcting the so-called "fiscal imbalance" — the claim that the provinces are not getting their fair share of the money Ottawa collects.
Quebec, which goes to the polls in a provincial election on March 26, would get the bulk of the new money, roughly $698 million. Saskatchewan would follow with an extra $226 million, meaning that it will get the most per provincial resident, at $230.

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Flaherty's budget also included a "tax-back guarantee" — a plan to legislate the return of money the government saves in interest payments on the federal debt to individual Canadians, in the form of personal income-tax reductions.

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The budget also includes a change to when people must convert registered retirement savings plans (RRSPs) or registered pension plans (RPPs) into registered retirement income funds (RRIFs). The conversion will now be made when the holder turns 71, up from the current limit of 69 years.

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Flaherty's budget also includes several environment initiatives that may have been designed to help win the support of opposition parties to get the budget passed in the House of Commons. As a money bill, the budget is considered a confidence motion. Failure to win passage of the budget would spell the end of the 14-month-old minority government and spring another election.
The Conservatives unveiled plans for rebates of up $2,000 from the government on the purchase of new fuel-efficient vehicles and a levy on gas guzzlers.

At the other end of the spectrum, new passenger vehicles that consume more than 13 litres of fuel per 100 kilometres will be hit with a $1,000 levy. Trucks will be exempt. The rate of the levy will rise to $4,000 on vehicles with fuel consumption ratings of 16 litres per 100 kilometres or higher.

[FlamesAllTheWay]

Originally Posted by RedHot25

At the other end of the spectrum, new passenger vehicles that consume more than 13 litres of fuel per 100 kilometres will be hit with a $1,000 levy. Trucks will be exempt. The rate of the levy will rise to $4,000 on vehicles with fuel consumption ratings of 16 litres per 100 kilometres or higher.

Whew, good thing my passenger vehicle is 13 years away from being considered new...

[photon]

Hm, no hint of the capital gains carryover..

[RedHot25]

More here from CTV: http://www.ctv.ca/servlet/ArticleNew...hub=TopStories

Finance Minister Jim Flaherty delivered on Monday a budget packed with tax-break goodies for families, incentives to buy environmentally friendly cars and billions of dollars to fill provincial coffers. Amid growing speculation of an early trip to the polls, the minority Conservative government crafted a something-for-everyone budget meant to appeal to a broad range of voters, particularly Canadians living in the suburbs outside Toronto, Vancouver and Montreal.

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The Liberals and New Democrats refused to support the budget, but it did receive the backing of the Bloc Quebecois -- ensuring its survival in the House of Commons and quelling the hype over an immediate election.

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The Conservatives are promising $39 billion over seven years for the provinces. But some will get a bigger share of the pie. "Have-not" provinces like Quebec, for instance, will receive $3.2 billion in transfers over the next year for social programs, infrastructure and equalization payments.
The government also zeroed in on families with children, low-income families and seniors in a move one senior Conservative described to CTV News as a vote-getter.

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Key measures include:

• The Working Income Tax Benefit, which is intended to assist low-income Canadians who are making the transition from welfare to the workforce.
• A new $2,000 child tax credit that will provide up to $310 of tax relief for each child under 18
• $140 million over the next two years toward a Registered Disability Savings Plan
• Resources to the Canada Revenue Agency to detect and close down tax avoidance through offshore tax havens
• A rebate of up to $2,000 to buyers of fuel-efficient cars
• A levy of up to $4,000 on fuel-inefficient vehicles, which does not extend to gas-guzzling pickup trucks
• An increase in the age limit to 71 from 69 for registered retirement savings plans and registered pensions
• $300 million toward offering a vaccine to protect women against cervical cancer
• An end to the marriage penalty by increasing the spousal and other amounts to provide up to $209 of tax relief for a supporting spouse or single taxpayer supporting a child or relative

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The finance minister also committed to pay down at least $3 billion a year on the $472 billion national debt.
About two-thirds of the budget is going toward resolving the so-called fiscal imbalance while the remaining one-third is committed to tax reduction and other spending initiatives, Flaherty said.

[RedHot25]

And straight from the horses mouth, some good ole government propaganda:

http://news.gc.ca/cfmx/view/en/index...icleid=284989&

[ken0042]

I also thought the person exemption was going up too. So nothing for single income families without kids. (Or more specifically in my case single people.)

That and nothing mentioned for infastructure...... maybe I should be looking Liberal next election.

[Mccree]

http://kpmg.ca/en/services/tax/tnf/tnfc0711.html

Has a nice summary. The spousal amount is going up.

[cSpooge]

Originally Posted by ken0042

I also thought the person exemption was going up too. So nothing for single income families without kids. (Or more specifically in my case single people.)

That and nothing mentioned for infastructure...... maybe I should be looking Liberal next election.

The amount raise was included in the last budget IIRC, so that would explain why they didn't raise it again.

[mykalberta]

Does anyone know the details on the vehicle rebate/levy system

I heard max rebate was 2K and max levy was 4K?

Serves those people right who drive dually trucks downtown and then get upset when I hug the line so to not splash pedestrians.

Hopefully there is a caveat for farmers.

MYK

[Slava]

Originally Posted by mykalberta

Does anyone know the details on the vehicle rebate/levy system

I heard max rebate was 2K and max levy was 4K?

Serves those people right who drive dually trucks downtown and then get upset when I hug the line so to not splash pedestrians.

Hopefully there is a caveat for farmers.

MYK

I think that you're right with those numbers. It doesn't apply to pick-ups though, so no luck on the drivers that are getting you!

[ken0042]

It looks like I can bring back $400 worth of bottle rockets now.

48-Hour Travellers’ Exemption‑The customs and tax exemptions for returning Canadian residents who have been out of Canada for more than 48 hours is increased to $400 (from $200), for travellers returning on or after March 20, 2007

[RedHot25]

Another good budget overview here - http://finance.sympatico.msn.ca/Budget2007

Gives reactions from around the country as well.

[mykalberta]

Originally Posted by Slava

I think that you're right with those numbers. It doesn't apply to pick-ups though, so no luck on the drivers that are getting you!

Damn it, if you dont own a small buisness or the vehicle isnt owned buy a buisness it should be taxed, these extended cab long box beasts in a City like Calgary is ridiculous.

MYK

[Slava]

Originally Posted by fotze

Pretty safe bet those are business owned trucks. If you are in the service side you get a truck, even if you are the mail delivery clerk.

I doubt that the guy who lives around the corner from me with "dodgezilla" across the back window is using that for business. He probably drives to and from the c-train station with it, like everyone else.

[Bobblehead]

Well, if it is on the lot right now, there won't be a levy. If it is delivered to the lot this afternoon, there will be a levy.

[ken0042]

Originally Posted by Slava

He probably drives to and from the c-train station with it, like everyone else.

I also wonder, what is the impact on the environment to manufacture a vehicle? Between extracting the metal, smelting, manufacturing, and then the eventual impact of an extra vehicle going to the wrecker.

I ask, because I wonder if there may be some cases where it's better for a family to have one multipurpose vehicle like a truck; instead of a small car as well as a truck.

[Burninator]

At the other end of the spectrum, new passenger vehicles that consume more than 13 litres of fuel per 100 kilometres will be hit with a $1,000 levy. Trucks will be exempt. The rate of the levy will rise to $4,000 on vehicles with fuel consumption ratings of 16 litres per 100 kilometres or higher.

Aboot time there was some incentive for people to drive hybrid cars. They now get somewhere between $1000 and $2000 back for their car. The hike on fuel hungry cars and SUV's is fine in my books. I don't think the average person (like my mother) needs a 5.4 litre 8 cyclinder engine SUV to drive herself to work.

[DuffMan]

In some places, if not most places in Europe your vehicle is taxed by size of engine displacement, and a lot of other countries tax vehicles by engine size.

[mykalberta]

Originally Posted by fotze

Why don't they just tax the gas. Use more pay more. Simple. Those piece of crap smoke spewing volkswagon bus things should not be exempted.

Agree but the Cons would get crucified for that, this is a way around it to get people climatized to it.

I could see it as a way for the Cons to "show" the East that its "tough" on Big Nasty Oil

MYK

[Ironhorse]

Originally Posted by DuffMan

In some places, if not most places in Europe your vehicle is taxed by size of engine displacement, and a lot of other countries tax vehicles by engine size.

Correct. And weight & wheelbase sometimes also enter the equation. To be honest, I don't know why they haven't caught onto that over here.