These are the potential tax measures federal budget watchers are speculating about this year
This year’s federal budget has important implications because of the upcoming October election. Speculation about what it contains, and especially how personal taxes may change are at the forefront. In the pre-budget process some hints at the different tax options being considered include raising taxes for all or making the very rich pay a much larger tax. Raising the capital gains tax inclusion rate is also an option. There are many conflicting opinions, including making the personal tax rates competitive with the US.
- Finance Minister Bill Morneau is expected to table the budget the week of March 18, but some believe it could be postponed until sometime in April.
- During the consultation process the recommendation was to expand the tax brackets and raising taxes on high earners.
- Reassessment of the capital gains inclusion rate, bringing the tax rate closer to the rate for dividend income.
“Of the 99 recommendations for the upcoming federal budget, less than half a dozen of them involved personal tax changes.”