Bev’s Briefing-e-newsletter

Special Edition-Economic Action Plan 2015

Budget 2015

On Tuesday of this week, Finance Minister Joe Oliver presented to the House of Commons the 2015 Budget, better known as Economic Action Plan 2015. As promised, it was a balanced budget that will create jobs, growth and long-term prosperity. In fact, it’s a budget with a $1.4 billion surplus which will allow our government to cut taxes further for Canadian families and individuals. In debate over the last couple of days, it has been very clear that the Liberals and the NDP see tax reductions as an expense where as our Conservative government sees tax reductions as a savings for Canadians. The Liberals and NDP see tax money as an opportunity to build bigger government and look after friends and clients. We see tax cuts as money left in the pockets of Canadians for them to use as they see fit to stimulate the economy.

Below, I’ll expand a bit on some of the specific measures that will most help the people of Lambton-Kent-Middlesex, including farmers, seniors, families and small businesses.

Support for Farmers

I understand how important it is to support our agriculture and agri-food industry by increasing the Lifetime Capital Gains Exemption (LCGE) to $1 million. This is the third time our government has increased the LCGE. As you may remember in 2006 when we were first elected, the LCGE was only $500,000.

Support for Seniors

Our senior citizens have helped shape this incredible country of Canada. Our government wants to continue to support them. One of the important requests they had was surrounding Registered Retirement Income Funds. (RRIFs) We are reducing the minimum withdrawal for RRIFs to allow seniors to keep more of their retirement savings to better support their income needs. This comes along with our earlier move to increase the age from 69 to 71, before seniors had to start withdrawing from Registered Retirement Savings Plans to put into RRIFs.
We are also supporting seniors and persons with disabilities by introducing the Home Accessibility Tax Credit to help with renovation costs to make their homes safer and more accessible. This will help more seniors remain in their own homes.
Many seniors and other Canadians will also benefit from another increase to the Tax-Free Savings Account annual contribution limit. Effective for 2015 and beyond, the limit will rise to $10,000 per year.

Support for Families

It’s a belief of mine and our government that individuals themselves are better placed than governments to determine their own spending priorities. That’s why, since 2006, we’ve introduced several measures to make life more affordable for Canadian families. As you know, we brought forward four new or enhanced family benefits which include enhancements to the Universal Child Care Benefit (UCCB). Support for children under the age of 6 increases from $100 a month to $160 a month starting in July and is retroactive back to January. (Works out to $1920 per child, per year) The benefits are also now being extended to children aged 6 to 17 at $60 per month. ($720 per child, per year) The Child Care Expense Deduction increases the limit by an additional $1,000. The Children’s Fitness Tax Credit is being doubled to $1000 and is now refundable. And the Family Tax Cut will benefit many families with children under 18 who will now be able to split their income for tax savings. A typical two-earner Canadian family of four can receive tax relief and increased benefits of up to $6,600 in 2015 because of our government’s tax cuts and increased benefits.

Support for Post-Secondary Students

Our government continues to build on our support for post-secondary students. We will be enhancing access to post-secondary education by expanding the eligibility for Low and Middle Income Canada Student Grants to students in short-duration programs. We are also making the Canada Student Loans Program work for families by reducing the expected parental contribution under the needs assessment process.

Support for Caregivers

Our government understands just how difficult it can be to care for terminally ill family members. Caregivers fear they could lose their jobs if they take too much time off work but want to be there for their loved ones. We are now extending Employment Insurance Compassionate Care Benefits from six (6) weeks to six (6) months to better support Canadians in this very difficult situation.

Support for Small Businesses

Budget 2015 will reduce the small business tax rate from 11 to 9 percent by 2019 – putting an estimated $2.7 billion back into the pockets of job-creating small businesses and their owners between now and 2019-20. In 2006 when we formed government, the small business tax rate was at 13.2 percent. These changes now make it 46 percent lower than it was in 2006.

For more detailed information about Economic Action Plan 2015, please head to http://www.budget.gc.ca/2015/home-accueil-eng.html

Did You Know?

-Our government has lowered taxes every year since forming government in 2006. In fact, the overall federal tax burden is now at its lowest level in more than 50 years.

-Balanced budget legislation will be introduced to enshrine in law our government’s responsible fiscal management policy.

-New shoes on budget day is an unusual tradition among Canadian Ministers of Finance. While several of our parliamentary traditions have their origins in Britain, new shoes on budget day is truly Canadian.

Until next time,

Bev Shipley, M.P., Lambton-Kent-Middlesex