Budget 2000, Miscellaneous, College Term Papers.com


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Budget 2000

Budget 2000 a) main revenue sources and amounts For the fiscal year 2000-2001, (all amounts in billions and rounded off to the nearest tenth) Sales and excise taxes/duties - $33.5 In total, there will be an estimated $162.0 billion in government revenue for the fiscal year 2000-2001. For fiscal year 2001-2002, (all amounts in billions and rounded off to the nearest tenth) In total, there will be an estimated $168.0 billion in government revenue for the fiscal year 2001-2002. For the fiscal year 2000-2001, (all amounts in billions and rounded off to the nearest tenth) Major transfers to provinces - $22.6 In total there will be an estimated $162.0 billion in government expenditure for the fiscal year 2000-2001. For the fiscal year 2001-2002, (all amounts in billions and rounded to the nearest tenth) Major transfers to provinces - $24.1 In total there will be an estimated $168.0 billion in government expenditures for the fiscal year 2001-2002. e) the budget proposals and the government's explanation for why they have been adopted The government has promised a five year relief plan to restore full indexation of personal income tax system to both shield the tax payers from inflation and cut rates for the first time in 12 years. - the basic personal credit increases from $7, 131 to $7, 731 this year. Which results in a savings of $17 for everyone who earns more than the previously stated amount. - by 2004, the credit will have increased to at least $8000 - middle tax bracket has been increased from $29, 590 to $30, 004. The impact of this is estimated at $108 for anyone earning more than the previously stated amount. - there will be cuts to the middle tax rate from 26% to 24% in July of 2000 - the top tax bracket rises from $59, 180 to $60, 009. Which is a total of $240 in savings this year. Eventually, it will rise to $70, 000. - there will be a 1.4% increase of : spousal credit, the age amount for seniors, the disability credit, the medical expenses credit, the Old Age Security replacement threshold and the goods and services tax credit. - there will be increases to the Child Tax Benefit by fiscal 2004-2005. Also, as inflation increases this credit will too. - capital gains tax has decreased. If you were to transfer your investment from one stock to another, there would be no tax on your capital gains at that point. - the government has also committed to promoting research and development in universities, research hospitals and the private sector. He has also promised to help newer environmental technologies and improve practices and strengthen provincial and municipal foundations. - Canadian Health and Social Transfer increased support for the post-secondary education and healthcare by $2.5 billion. - provides $900 million over five years to establish and sustain $2, 000 Canadian Research Chains by 2004-2005. f) assessment of the budget from critics and proponents The budget for fiscal 2000-2001 has stirred up a lot of controversy. Alexa McDonough, who leads the New Democratic Party, has openly disapproved of Liberal government for not funding health care as much. "The system is hemorrhaging and they're offering two cents on health care for every dollar of tax cuts. That is a prescription for longer waiting lists, more people in emergency rooms and more pain and suffering," she said. Reform MP Keith (Esquimalt-Juan de Fuca) accused the Liberals of "hiding behind rhetoric" and "philosophical myths" about maintaining medicare and refusing to deliberate private services. Preston Manning, the leader for the Reform Party, referred to the Liberal tax-cut budget as a "shell game" and he stated to House of Commons that all spending initiatives stipulated in the budget should be distrusted because of the mismanagement of taxpayers' money at the human resources department. The Reform party is pursuing a 17% flat tax, which will result in everyone paying the same rate, thus offering unbalanced tax breaks to the wealthiest. Manning reasons that it will also stand to remove 2 million low-income Canadians from the tax rolls. He believes that the Liberals trumpeted tax breaks in this years budget while remaining silent on 60 other tax increases. A writer for The Toronto Star that while the taxes benefitted most, it did little for the growing homeless problem and the Liberal's long overdue assurance of a children's agenda. He contends that the tax cuts will profit the poor the most. According, to him the biggest disappointment in the budget was Ottawa's failure to ease the insoluble shortage of affordable housing in Canada's cities. He concludes by saying that the values in Martin's budget will promote growth, put more money in people's pockets and encourage innovation. However, it won't shelter Canada's neediest citizens. Obviously, the Liberals are standing behind this budget because they have the most to gain from it. They are basically 100% in support of Finance Minister, Paul Martins, relief tax system. I have to admit that the government made a lot of heavy duty changes in our tax system. All these billions of dollars that he has promised to cut in taxes is a good thing. However, I think tax payers could have benefitted more from him putting money back into the economy. What I mean is these tax cuts don't really have as much value to the middle and lower bracket income families. [So, they save $200 here, but over there they'll be paying $300 for high medical fees or thousands even for their children's tuition.] And on a personal level, I find it insulting that he just assumes that these families (mine included), won't see through this charade. One thing that I did like about the tax cuts was the money that he plan to put back in research and development. This will most likely contribute to the economic growth of Canada by it creating more jobs and by people investing in these companies. Comparably, the tax cut to capital gains will encourage people to invest in these corporation, thus having the same affect. I think these cuts won't necessarily affect me directly until I graduate university. At which point, when I enter into the labor force, I will be receiving more take home pay than I would have had I entered fifteen or even five years earlier. These tax cut will ultimately determine whether or not I contribute to Canada's ‘brain drain'. I think with this relief tax plan my decision will be based more on where I feel most comfortable rather than where I can get the ‘most for the least'. Bibliography:

Word Count: 1186