The federal government has tabled its 2011 budget–a budget which may never be enacted, given the mood of the opposition. The leaders of the Liberal Party, the Bloc Quebecois and, perhaps most surprisingly the NDP, have all stated they will not support the budget.
From the looks of the budget, the governing Conservatives knew they would have to throw a bone to the NDP–its got perks for children’s arts programs, increased senior relief and new student funding.
Even if the budget passes first reading, there’s the little matter of the “contempt of Parliament” ruling hanging over the government. If it leads to a non-confidence vote, the budget could die on the order paper.
Flaherty brings down “responsible, practical” budget
By Doug Watt – Seniors, students and job-seekers will see some additional benefits from this year’s budget, introduced today in Ottawa. But those benefits are relatively minor, and may not be enough to appease the opposition parties, who are threatening to topple the government and trigger a federal election. “We believe that the honourable members in the opposition will recognize that our plan addresses practical concerns with responsible solution,” Finance Minister Jim Flaherty said in his budget.
|| Take the Poll || Client Letter || Full Budget Speech || Summary of Measures || Economic, Fiscal Outlook || Financial Resolutions ||
More on the story from Advisor.ca
Small caregiver credit, minor perks for seniors
By Vikram Barhat – A family caregiver tax credit of up to $300, a Guaranteed Income Supplement top-up of $50 a month for singles and $70 a month for couples, and elimination of the mandatory retirement age for federally regulated employees are not enough to improve the quality of life and increase opportunities for Canadian seniors. This generally sums up the immediate reaction of the financial services industry with regards to the federal budget released by Finance Minister Jim Flaherty on Tuesday.
Closing the loop on HNW clients
By Melissa Shin – The good news: marginal income tax rates didn’t go up. The bad news: for high-net-worth clients, the effective tax rate probably did. In a budget full of few surprises, commitments to close various tax planning loopholes were a more subtle way of increasing revenue in government coffers.
By Philip Porado - Show clients you’re proactive by sending them this customizable letter about the Federal Budget.
Budget 2011: Industry reaction
By John Powell – Reaction and response to Finance Minister Jim Flaherty’s budget announcement came fast and furious from the financial industry. Although all of today’s proclamations from the Conservative Party may come to naught if the budget is not passed, the opposition parties aren’t the only ones to express disappointment with the budget.
Budget provides modest, targeted breaks for families
By Dean DiSpalatro – While this year’s budget contains some tax breaks for average Canadian families, the changes aren’t much to get excited about. Fred O’Riordan, national tax advisor at Ernst & Young, says he wasn’t surprised with the measures in this year’s budget. “I expected it to be a stay-the-course type of budget, both on the tax side and the expenditure restraint side.”
More budget coverage from Rogers Publishing
Small business gets hiring credit, little else
By Leigh Doyle – It might be the Year of the Entrepreneur but the 2011 federal budget delivered only a few breaks to Canadian small businesses. The one major benefit is the hiring credit for small businesses, which is intended to encourage job creation.
FROM: SmallBizAdvisor
The investor perspective
By Larry MacDonald – While a reduction in the budget deficit for fiscal 2010-11 may have given the federal government “wiggle room” to undertake new spending measures beneficial to families and individuals, investors were not so lucky. Indeed, aside from a vague reference to Pooled Registered Pension Plans, some financial literacy announcements and a small positive change to Registered Education Savings Plans, the proposals were focused on curtailing the tax planning activities of investors.
FROM: Canadian Business Online
There, isn’t that better?
By Scott Feschuk – It was a time that few will soon forget. As the Egyptian people rose up and chased their president from office, Stephen Harper took the measure of the moment, stared history in the eye and offered the following words to posterity: Those Egyptians, he said, “are not going to put the toothpaste back in the tube on this one.”
FROM: Maclean’s Magazine
Healthcare system doesn’t get the boost it needs
By April Scott-Clarke – Support for informal caregivers and research money were small but positive steps taken to enhance the Canadian healthcare system in the 2011 budget, but much remains to be done to affect systematic change. Access to care it a huge issue for Canadians—especially those in remote areas.
FROM: Benefits Canada
Caregivers get a break with budget
By April Scott-Clarke – An aging workforce means aging parents of those employees as well. As more and more employees find themselves in the caregiver role, employers are put in a tough spot at times. All that can be realistically expected of employers is to be sympathetic to their employee’s situation and allow for flexible hours.
FROM: Benefits Canada
Federal Government announces framework for demutualization
By Suzanne Sharma – The Federal Government has announced plans to set up a regulatory framework for P&C mutual insurance companies to demutualize. The changes were announced as part of the Federal Budget 2011 on March 22.
FROM: Canadian Insurance
Opposition parties say they’ll vote against budget
By CityNews.ca Staff and Francis D’Souza – All three opposition parties said they’ll vote against the federal budget unveiled Tuesday unless there are changes – increasing the likelihood of a spring election. “Nothing in this budget has persuaded me that Mr. Harper has changed his ways,” NDP leader Jack Layton told of reporters in the foyer of the House of Commons. “…he just doesn’t get it.”
FROM: City TV
