Economy 53,160 Posted October 25, 2017 Share Posted October 25, 2017 http://www.ctvnews.ca/mobile/politics/federal-economic-outlook-improves-deficit-projected-at-19-9b-in-2017-18-1.3646888 Canada Recently lowered middle bracket income taxes to 20.5% and child care benefits were increased to $160/month Now thanks to strong economic growth and stronger revenue than expected this coming year Trudeau plans to increase child payment benefits yet again and small business taxes will be cut to 9% With these new adjustmenta the deficit is forecast at $19.9 Billion or 1% of GDP Link to post Share on other sites More sharing options...
Petie Estie 5,743 Posted October 25, 2017 Share Posted October 25, 2017 lol you got me clicking with "targets" thinking this was bad Call your therapist...it's Petie Estie Link to post Share on other sites More sharing options...
Economy 53,160 Posted October 25, 2017 Author Share Posted October 25, 2017 @Luc maybe higher child payments and lower taxes will offset higher interest rates on debt and falling home prices So far real estate is correcting very gracefully. Lets see what happens after January 1st when the new Stress Test regulations kick in 👀 But yeah tax cuts and benefits have been targeted at people in which it will make a differencenin their disposable income! Link to post Share on other sites More sharing options...
Economy 53,160 Posted October 25, 2017 Author Share Posted October 25, 2017 Just now, SEANGT said: lol you got me clicking with "targets" thinking this was bad No lmao Trudeau has been targeting spending and tax cuts where he believes will have most economic ripple effect - small business tax cuts - middle class tax cuts - higher child payment benefits - higher infrastructure spending Link to post Share on other sites More sharing options...
Luc 4,776 Posted October 25, 2017 Share Posted October 25, 2017 I just don't see why Canada would need stimulus right now... they're doing better than ever, save the stimulus for the next crisis. Now is the time for a big budget surplus. Link to post Share on other sites More sharing options...
Economy 53,160 Posted October 25, 2017 Author Share Posted October 25, 2017 1 hour ago, Luc said: I just don't see why Canada would need stimulus right now... they're doing better than ever, save the stimulus for the next crisis. Now is the time for a big budget surplus. Errrm yes labor market and growth has been very robust but at the same time its also very fragile too! Housing Prices have started falling, Construction is falling... And the new Stress Test requirements for mortgages that come into effect January 1st 2018 are expected to reduce average mortgage maximums by 21% for average Canadians Also consumer debt is very high and weve started raising interest rates which will take some bite off of peoples income despite rising incomes Theres a lot of bubbles deflating and correcting in Canada right now and theres always a risk it could burst rather than deflate if conditions are not just right With a deficit of only 1% of GDP thats suppostu fall every year after this year, Its not a big price to pay if it helps keep things stable during this uncertain phase. If these imbalances that are trying to correct themselves fall too hard and economy crashes deficit will grow to more than 1% of GDP! Link to post Share on other sites More sharing options...
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