2019 Federal Budget – “Investing in the Middle Class”
On March 19, 2019, the Honourable Bill Morneau, Minister of Finance, released the 2019 federal budget, “Investing in the Middle Class”. The budget forecasts a $14.9 billion deficit for fiscal 2018-19, a $19.8 billion deficit for 2019-20, and a $19.7 billion deficit for fiscal 2020-21. Although the government does not forecast a balanced budget, it does project a gradual reduction of the deficit to $9.8 billion in fiscal 2023-24.
There were no changes to the personal or corporate income tax rates and this budget did not propose significant changes to the personal and corporate tax rules that the past few budgets addressed.
However, there were some new proposals to the tax rules that will impact certain taxpayers. The proposed amendments include limitations on the benefits of employee stock options, changes to the claw-back of refundable SR&ED tax credits, several new personal tax credits, and adjustments to provide more assistance to new home buyers.
For additional commentary on relevant topics of interest from the 2019 federal budget, please click on the respective links, below:
- Employee Stock Options
- SR&ED Tax Credit and CCA Deduction
- Personal Tax Measures
- Changes Affecting New Home Buyers
Please contact your Fuller Landau advisor if you would like to discuss how the budget impacts you.