Something for every family

Finance Minister Joe Oliver released the Conservative government’s 2015-2016 budget in the House of Commons Tuesday.

The budget is balanced, with a surplus of $1.4 billion, and has several features designed to appeal to seniors, who make up a large part of the Sault Ste. Marie riding currently represented by Conservative MP Bryan Hayes.

The government is lowering the annual amount that seniors must withdraw from Registered Retirement Income Funds (RRIFs).

“This is something seniors have been asking for,” Hayes said, speaking to SooToday.

As things currently stand, a senior is required to withdraw seven percent of the RRIF in the year they turn 71, with the withdrawal rate going up each year until age 94, when it is capped at 20 percent.

The new rules proposed in Tuesday’s budget reduce that withdrawal rate beginning at age 71 to five percent, with the rate slowly increasing to 18 percent at age 94.

The budget also contains a Home Accessibility Tax Credit for seniors and people with disabilities, through which people can claim up to $10,000 on costs involved with making a home more accessible with devices like stairlifts.

“I think that’s incredibly significant…seniors want to live in their homes as long as they can,” Hayes said.

The government will also increase the annual contribution limit on tax-free savings accounts (TFSAs) to $10,000, up from the current $5,500.

Critics have already stated most people do not have that much money to spare for tax-free savings accounts, charging the Conservatives have introduced “a budget for the rich.”

“That’s simply not true,” Hayes said.

“There are 11 million Canadians who have tax-free savings accounts.  Half of them earn less than $42,000 a year, so that’s not rich.”

“The tax-free savings accounts are an opportunity for young people to put aside money for their first home purchase…or support their childrens’ education down the road,” Hayes said.

“The critics are wrong.  Some people will put in a thousand dollars a year or 500 dollars a year, but it builds and people’s incomes and lifestyles change along the way, things change in life.”

Under the Conservative budget, the small business tax rate drops from 11 per cent to nine per cent by 2019.

“A reduction to nine percent is gradual, yes, but it will be very well received.  As a former small business owner, that’s significant.”

“I think that’s the significant piece about this budget, is that there are no tax increases for Canadians,” Hayes said.

“Since forming government in 2006, we’ve had 180 tax reductions and with the new measures in this budget the average family of four will save $6,000 a year.”

The new budget also brings in changes to the Universal Child Care Benefit and Child Care Expense Reduction.

The Universal Child Care Benefit will increase to $160 a month for all children under six, and $60 a month for children between six and 17.

“There never used to be anything for children between the ages of six and 17…we want parents to have the ability to decide how they’re going to spend their money and how they’re going to provide child care.”

Families have until May 1 to register for the monthly Universal Child Care Benefit cheque.

The Conservatives also plan to bring in the Family Tax Cut (first announced last fall), more commonly known as income splitting, in which a couple can shift up to $50,000 in income from a higher-earning spouse to a lower-earning spouse, so that one large income can be trimmed down to reduce an individual’s tax bill.

A report from the Parliamentary Budget Officer says the Family Tax Cut will benefit only 15 percent of the country’s households, with no benefit for lower income households.

“The reality is people will use this and we’ve introduced measures for seniors that are specific to seniors, we introduced measures for students that are specific to students.  Critics say only 15 percent of families will be able to use this, (but) this is part of our entire family tax package, it’s part of the Universal Child Care Benefit, this is part of a package,” Hayes said.

In regards to job creation, at a time when several hundred workers remain laid off from Tenaris Algoma Tubes, Hayes also spoke of a $65 million training program over four years for post-secondary institutions.

“It’s to better align the curricula of post-secondary institutions with the needs of employers.”

“The reduction in the small business tax rate, that is also a job creation measure unquestionably,” Hayes said.

“With respect to job creation in the Sault…we’ve provided manufacturers an accelerated capital cost allowance for a 10-year period to boost productivity and enhance investment and this allows them to do long term planning.”

“We’ve provided $1.5 billion in funding over five years to advance the science, technology and innovation strategy, that’s all about job creation.”

“All of those things are job creation initiatives,” Hayes said, adding he is eager to see the price of oil go back up and lead to the recall of laid off Tenaris Algoma Tubes employees.

Hayes said many of the measures announced by Finance Minister Joe Oliver Tuesday were due in large part to budget consultations held across the country and did not characterize this as an election budget.

The next federal election is scheduled to be held October 19.     

OTTAWA, ON  -  Member of Parliament Bryan Hayes is welcoming the Harper Government’s Economic Action Plan 2015.

It will support jobs and growth in Sault Ste. Marie as well as help our families and communities prosper and ensure the security of all Canadians.

“We have kept our promise to Canadians by balancing the budget in 2015, the first balanced budget since the Great Recession.”

“Under our leadership, Canada has created over 1.2 million new jobs since the recession, but we live in uncertain times and the global economy remains fragile.” said MP Hayes. “That’s why Economic Action Plan 2015 will continue our Government’s focus on creating more jobs and growing the economy in Sault Ste. Marie and across the country.”

Economic Action Plan 2015 includes key measures to support Sault Ste. Marie families and to support the Ontario economy, including:

• Cutting Tax for Small Business: Economic Action Plan 2015 proposes to further reduce the small business tax rate down to 9% by 2019. Due to measures taken since we formed government, we have reduced taxes for small businesses by almost 50%.

• Supporting Families: Economic Action Plan 2015 benefits 100% of families with children by lowering taxes and increasing benefits. An average family will receive $6,600 in support per year due to measures our government has introduced.

• Tax Free Savings Account: Economic Action Plan 2015 proposes to increase the Tax-Free Savings Account annual contribution limit to $10,000, effective for the 2015 taxation year. There are now 11 million Canadians who have opened accounts to save money for their priorities.

• Supporting Job-Creating Businesses: Economic Action Plan 2015 proposes to support manufacturing job across Ontario by providing tax relief for manufacturers and funding the new Automotive Supplier Innovation Program. These initiatives will help create jobs and economic growth for Ontario. 

• Public Transit Fund: This fund will grow to $1 billion a year to support major public transit projects to reduce gridlock, create jobs, and protect the environment.

• Supporting Seniors: Economic Action Plan 2015 proposes to provide more flexibility for seniors by reducing the minimum withdrawal factors for Registered Retirement Income Funds to permit seniors to preserve more of their retirement savings. Economic Action Plan 2015 also proposes to introduce a new, permanent, non-refundable Home Accessibility Tax Credit for seniors and persons with disabilities.

• National Security: To ensure that our Armed Forces continue to have what they need to accomplish the dangerous tasks Canadians ask of them, Economic Action Plan 2015 proposes increase National Defence’s budget by $11.8 billion over 10 years. We are also providing new funding to help counter violent extremism and terrorism.

While we’re focused on creating jobs, Justin Trudeau has the same old Liberal high tax, high debt agenda that will threaten jobs and set working families back.

Meanwhile, the NDP continues to push risky high-tax schemes like a $20 billion carbon tax that would hurt Canada’s economy and kill Canadian jobs.

Only our Conservative Government can be trusted to manage Canada’s economy and keep taxes low for the people of Sault Ste. Marie.

The Province of Ontario will receive record high transfer payments to support health care, education, and social programs.

Specifically, Ontario will receive $20.4B in federal transfers this year – an increase of $9.6B (or 88%) from under the old Liberal government.

“We are proud of our plan that is lowering taxes and providing benefits directly to families in Sault Ste. Marie for them to reinvest in the Canadian economy,” says MP Bryan Hayes.

*************************