The 2nd Federal budget was tabled today by the Liberal Party of Canada. The debt as expected is growing and the fiscal deficit expected to reach $28.5 billion this year.
The highlights that will impact your taxes are discussed below:
• No change to Capital Gains – Rumors were afloat before the budget that the inclusion rate for Capital Gains Tax will increase and this had the investor community in Canada worried.
• Public Transit Tax Credit Abolished – Starting July 1, 2017, the public transit credit will be abolished. This will increase the tax bill for public transit riders
• Caregiver Credit Simplified– The caregiver credit has been simplified and increased up to $6,883 who are providing care to their loved ones. This credit can now also be claimed if your loved one does not reside with you.
• Disability Tax Credit Simplified – The Disability Tax Credit certificate could only be completed y a Doctor until now. Starting 23rd March, 2017, you can even ask your nurse to fill out the DTC application.
• Uber gets costlier – All Uber drivers will now be required to take GST numbers as required by other taxi drivers irrespective of the sales they make and this will increase the cost of rides for their passengers
• Alcohol get Costlier too: Looks like you will have to spend a little bit more for the Friday night hang out with friends. The tax on Alcohol has increased by 2%. So, costlier drinks and costlier Uber ride to get home after the party.
• EI premiums Increased: The EI premiums have increased by 5 cents for every $100 of insurable earnings. However, people who go to school or for a skills training will continue to get their EI premiums under the new rules.
• Canada Savings Bond phased out: As Canada celebrates its 150th year, the good old Canada Savings Bond will be phased out as the demand for the investment product was extremely low.
So over all the investors will be happy although taxes will increase for public transit riders and uber users.