Federal Budget Features Infrastructure Spending and Tax Cuts

Tuesday, January 27, 2009 01:30 PM

Prince George, B.C. - Federal Finance Minister Jim Flaherty introduced a budget Tuesday that's expected to result in an $85 billion deficit over the next five years.

Budget 2009 promises billions of dollars worth of new spending, including $12 billion for new and greener infrastructure:

• $1 billion over five years for a green infrastructure fund.

• Up to $500 million over the next two years to accelerate infrastructure projects in small communities.

• $1 billion over two years to expedite new “ready-to-go” provincial, territorial and municipal projects.

• $4 billion over two years to restore aging infrastructure.

• $500 million over two years to Recreational Infrastructure Canada (RInC) to build and renew community recreational facilities.

• $2 billion for repair, maintenance and construction of post-secondary institutions.

Flaherty's budget also aims to help out Canadians hurt by the economic downturn, including:

• A 14-week extension of work-sharing agreements to a one-year maximum.

• $50 million over two years to cover severance pay owed to eligible employees of bankrupt companies.

• A five-week extension to all regular Employment Insurance (EI) benefits for two years.

• Continued low EI premium rates of $1.73 for 2009 and 2010, providing relief of $4.5 billion over two years.

• $500 million to extend EI benefits for workers in longer-term training.

• $1.5 billion over two years for EI and non-EI training programs.

• $55 million over two years for youth employment.

• $60 million over three years for the Targeted Initiative for Older Workers.

• $40 million a year to launch the $2,000 Apprenticeship Completion Grant.

The budget also provides tax cuts which include:

• Increasing the basic personal amount that all Canadians can earn without paying federal income tax

• Raising the upper limit of the two lowest personal income tax brackets by 7.5 per cent so that Canadians can earn more at lower tax rates.

• Increasing the amount that low- and middle-income families can earn before their federal child benefits are phased out.

The federal government says the aim of the budget is to provide a long-term plan to stimulate the economy, help out Canadian families during the global slowdown, and restore confidence. What remains to be seen is whether the opposition parties will support the budget.

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Posted on Tuesday, January 27, 2009 01:30 PM in News by 250 News

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Comments

Posted by: RUEZ on January 27 2009 4:52 PM

Jack Layton wants to vote this down. Why does Jack Layton hate poor people?

Posted by: sportsman on January 27 2009 5:43 PM

Because he wants to have a coalition government, it's the only way he can get into power in Canada!

Posted by: RUEZ on January 27 2009 6:21 PM

You hit the nail on the head sportsman. The whore Jack Layton said he would vote it down before even one minute part of it was revealed.

Posted by: polar7018 on January 27 2009 6:55 PM

i wonder if layton heard about iceland going belly up, thanks to a coalition government they tried there?
all he wants is jack layton being the prime minister of canada.
GIVE IT UP JACK.

Posted by: my2bits on January 27 2009 10:23 PM

There's nothing in here for the working poor, or for poor seniors. Raising the threshold for tax brackets, or personal exemptions does nothing for those who don't make enough to pay taxes to start with.
These are the ones who spend every cent they get, don't have debt to pay down because they don't qualify, and can't afford to save anything.

Posted by: gar on January 28 2009 5:29 AM

It's just a bunch of numbers anyway. They never pay it off.

Posted by: anniemartin on January 28 2009 6:29 AM

Conservatives first plan in government was to keep power at all costs. We had a surplus year after year and instead of savinging it for a time like this they gave tax breaks to corporations and lowered a consumption tax i.e. the GST.
This budget does nothing but spend us into a hole we will not recover from for a very long time. They did not increase the amount of EI so that people could actually live on it. They put in place cost sharing measures with the provinces and municipalities so that the money will flow when their "partners" can raise enough to match the funds. So in the end, the city and the province will raise taxes and we'll see the effects of the transfers 2 years from now, if at all - pretty sure Gordon will keep that money in the area with the most votes. Jack can dream-on but will not be Prime Minister, that job will go to Iggy in a coalition. Canada needs to move beyond the ideologies and politics and really listen to those in charge - oh I forgot Steven Harper's MP's don't talk to the media, they talk at them. I have little confidence in someone who is not answerable to the people. Just have to wait and see if any of this is going to make a difference to people who are losing their homes, using food banks at an alarming rate and trying to find a job that just isn't there anymore.

Posted by: Shellshadow on January 28 2009 10:14 AM

All these changes should have been fast tracked like the provincial government did. UIC needed the rules to change so that people do not have to wait longer than the two week waiting period before they get money. Most do not get a red cent for 2 months. I bet if UIC employees had to wait for their pay checques that long they would get off of their arses and get the paper work done!! What bank or landlord will wait that long for their moeney?? There are many people who can not wait a year for all these changes to take place....the need is NOW!!!!

I am really disapointed that more was not changed for those who have lost their jobs already. I hope that most of them take the training at least. God Bless you all!!