The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

“While taking my MFA–Succession & Estate Planning Specialist program, I created our Business Navigator Process… these courses were practical and applicable to my current wealth management practice with transitioning business owners.” David Allard, MBA, CFA, CFP, MFA, B. C.

“A wise man once said nothing. . .”  (Anonymous)

It’s official now:  Finance Canada confirmed on December 30 that restricted fixed costs for certain auto expenses claimed by business owners and employed commission sales people, which haven’t changed in some time; won’t be revised for 2017 either.

Most respondents to Knowledge Bureau’s final poll of 2016 answered yes when asked, “Do you think the 2017 federal budget will increase capital gains income inclusion rates to raise tax dollars?” We’ll have to wait for the details of the budget, expected early in the new year, to see what actually happens. Only 41% said no to the question.

President-elect Donald Trump will soon celebrate his inauguration and with his ascent to power, he has promised to reduce marginal tax rates, cut taxes, and allow businesses to expense new investments rather than deducting interest costs.  In Canada, meanwhile, we await a new federal budget.  What happens in the U.S., however, is relevant and could shape future taxation policies in Canada.

Did you know that last tax filing season, the average tax refund was just under $1,800, ($1740 actually) or about $150 a month?  That’s a lot of money to give to the government on an interest-free basis.  Make a new year’s resolution for 2017:  pay only the correct taxes owing and invest the rest.