An independent think tank dedicated to economic progress in Atlantic Canada.

Federal Budget 2006: Focused on Tax Cuts but Will This Address Uneven Regional Growth in Canada

May 5, 2006

The Conservative government’s first budget, tabled by Finance Minister Jim Flaherty, gives high preference to implementing priorities through reducing taxes rather than new spending by a ratio of 2:1, according to the government’s estimates. The budget provides an estimated $26 billion in tax relief during 2005/06 to 2007/09, of which over 90% goes to individuals through cuts to the GST and personal income taxes. While measures will lower taxes paid by all Canadians, the biggest beneficiaries are those with the highest incomes. For Atlantic Canada, however, the question is whether this shift towards tax stimulus will do much to address regional growth disparities.  Other budget measures relevant to Atlantic Canada are highlighted in this Commentary, such as eligible pension income, corporate taxes, the child care initiative, and others.  

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May 5, 2006

Federal Budget 2006: Focused on Tax Cuts but Will This Address Uneven Regional Growth in Canada

 

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