Well big surprise… today I’m writing about the budget. In my opinion this budget had a lot of hype and very little substance. I (like many others) was expecting some announcement (or even direction) on were the government is going on capitals gains tax but...sigh...nothing...maybe next year… I’ve outlined the good and bad of the budget below.
-No capital gains tax relief (despite the fact that this was a campaign promise). The exception to this is if you’re a small business owner, fisherman or farmer, who received an increase in the one time capital gains allowance from $500,000 to $750,000.
-No broad based tax cuts.
-If you make over $40,000 a year you’ll save $310 a year for each child (under 18).
-Eliminated the annual $4,000 RESP limit and raised the lifetime maximum to $50,000.
-Raised the maximum RESP grant limit (20% of annual contribution) from $400 to $500 annually
-Raised the age limit of RSP conversion from 69 to 71 (In my opinion this is a mixed blessing. Call me pessimistic but I think it’s the first step in increasing the receiving age of both CPP and/or OAS)
-If you buy a qualifying fuel-efficient car you could get a rebate of $1,000 to $2,000.
In my opinion none of the positive aspects of the budget even come close to being able to provide the same benefits as the promised, but not delivered relief from capital gains tax.