On budget day 2015, a CBC reporter commented that the budget had nothing exciting in it. I disagree.
The very fact that our government has balanced the budget when countries all around the world are running deficits is something to get very excited about. Since the 2008 global economic downturn, our government has implemented the economic action plan to grow the economy, create jobs and return to a balanced budget. Well, the plan has worked and I am excited.
Our budget supports families. Economic action plan 2015 benefits 100 per cent of families with children by lowering taxes and increasing benefits. An average family will receive $6,600 in support per year due to measures our government has introduced.
Seniors have also benefited from our plan. Since the introduction of the economic action plan, we have implemented pension splitting, higher OAS supports, introduced the tax free savings account, and increased the age for RRIFs to be withdrawn and now reduced the minimum withdrawal factors for RRIFs.
The economic action plan has also cut taxes for small business from 12 to 11 per cent while budget 2015 will further cut these rates from 11 to nine per cent by 2019. In 2006, a small business with a taxable income of $500,000 would have been taxed $83,600. In 2015, this has declined to $55,000 and in 2019 it will be $45,000 or a 46 per cent savings. More money in your hands to expand your business and hire more employees is good for the economy.
Since 2006, our government has introduced over 180 tax relief measures. Putting money in Canadians’ hands is good for the economy, but it also will help many Canadians to save for their first home or retirement and our government is assisting Canadians accomplish this by increasing the limits on the tax free savings account.
Increases in the universal child care benefit will help parents save for their children’s education. Canada’s government will also give a 20 per cent boost to registered educational savings plans (RESPs) where parents have invested $160 per month for the first six years. If parents choose to likewise invest the $60 monthly child care benefit for children aged seven to 17 in the RESP, they will be able to save $25,000 by the time their child is ready for post-secondary education or skills training.
This budget provides tax savings today so you can save for tomorrow’s priorities.