BUDGET CONSULTATION 2009

Compilation of ideas from Constituents.

Canada’s Economic Performance 2006-2008

“Where we have been”

Balanced Budgets 2006-2008 Reduced national debt by $37 billion – Tax Back

Guarantee returns the interest saved by lowering taxes

The average family through tax and the child benefit save on average $3,600 a year

Cut taxes to hardworking Canadians this year by $31 billion, equal to 2% of GDP

Cut taxes by $50 billion to small businesses and corporations, over the previous and next five years

Canada has the strongest economic performance of any country in the G7

Strong financial institutions unlike those in the U.S.

Specific Measures Lowered the GST from 7% to 5% Lowered personal income tax rates Created the Tax Free Savings Account 25% reduction in the minimum required

withdrawal from RRIF Increased the number of years RESP can be

contributed to and kept open Created the Registered Disability Savings Plan Universal Childcare Benefit $1200/year

Specific Measures – continued

Tax credits for fitness, apprentices and tools Cut small business tax rate from 13% to 11% Reduced corporate tax rate from 22.5% to

19.5% to 15% by 2012 Capital cost allowances write off for

manufacturers $75 billion in liquidity to financial markets Expanded availability of scientific and

research development program $3 billion to the BDC & EDC

Where we are? We’re facing a global economic downturn that

originated outside our borders – primarily in the U.S

Canada has been, and will be, negatively affected

Our economy will contract, businesses will close, jobs will be lost. This is a recession.

While we cannot fix the global economy ourselves, the federal government has and will continue to take steps to help boost Canada's economy

What is economic stimulus? Government itself cannot ‘fix’ the economy, but

can encourage new job and investment support

Fiscal stimulus can take many forms from tax reductions and government spending

It should boost the economy when needed, not when it has already recovered

An effective stimulus should also balance our short term needs with our long term goals of improved productivity through education, skills development, innovation and technology

What isn’t economic stimulus?

Wasteful government spending on ineffective programs or larger bureaucracies does not stimulate the economy

Higher taxes will not help stimulate the economy

What are we doing? On January 27th, your Government will

deliver the earliest federal budget in history. This unprecedented step is in direct response to the current downturn

As we prepare the budget, our government is consulting widely across the country with:provinces and the territoriesopposition partiesbusiness and labour groupsCanadians like you

What are we hearing? Budget 2009 must not result in a structural

deficit Investing in housing Supporting workers and sectors affected by

the declining economy Improving access to credit Measures should be timely, have maximum

impact for Canadians, be flexible in size and duration and be consistent with our long-term economic goals

Work with the new U.S. administration

Invest in and Expedite Infrastructure Projects

Windsor – Detroit Border Crossing; High speed rail initiative; Charing Cross Road / Hwy 401 interchange.

Benefits: Stimulate the economy and business in the area. Provide employment during such undertakings.

Tax Breaks

Write off interest on loans, family cars, business cars & trucks and principle home mortgages.Create a Canada Economy Fund for lost tax

revenue.Any private or business person can donate

to this fund and receive double write off for every dollar donated, the deadline would be February 28th.

The Housing Market

Create rental subsidies according to income.

When buying or selling have 3% interest on mortgages and possible write off of interest.

Employment Insurance (EI)

Discard the 2 week waiting period. Extend benefits.

Income Splitting for Everyone

Stay at home parents do not have an income, but have a very important role.

What’s your view?