Shedding Some Light on the 2017 Federal Budget | Building a Strong Middle Class

On March 22, 2017 the Honourable Bill Morneau, Minister of Finance, presented the 2017 Federal Budget, Building a Strong Middle Class, to the House of Commons.

The Government’s fiscal position includes a projected deficit in 2016-2017 of $23.0 billion, and projected deficits in the coming years as follows: 2017-2018 of $28.5 billion, 2018-2019 of $27.4 billion, 2019-2020 of $23.4 billion, 2020-2021 of $21.7 billion and 2021-2022 of $18.8 billion.

The Federal Government notes:

  • No change to the personal and corporate tax rates, nor inclusion rate on taxable capital gains.
  • An additional $523.9 million over five years to prevent tax evasion and improve tax compliance.
  • Elimination of the public transit credit and home relocation loan deduction.
  • Commencing July 1, 2017, ride-sharing services (e.g. UBER, Lyft) will be defined as “taxi businesses” for GST/HST purposes and therefore be required to charge and remit GST/HST.
  • Phasing out of the Canada Savings Bond Program.
  • Expanding employment insurance benefits for caregivers and certain other groups.
  • As part of a new National Housing Strategy, an investment of more than $11.2 billion in a range of initiatives designed to build, renew and repair Canada’s stock of affordable housing.
  • More than $2.2 billion, on a cash basis, to support clean technology research, development, demonstration and adoption as well as to accelerate the growth of clean technology companies.
  • Over the next 11 years, new investments of $7 billion towards early learning and child care.
  • An investment of $828.2 million over five years, starting in 2017–18, to improve the health outcomes of First Nations and Inuit.

2017 Federal Budget Chart

 

Tax Highlights

A. Personal Income Tax (pdf)

B. Business Income Tax (pdf)

C. International Income Tax (pdf)

D.  Sales and Excise Tax (pdf)

E. Other Measures (pdf)

F. Previously Announced Measures (pdf)