Federal Budget Summary: Housing and Capital Gains Tax
TD Economics
Budget 2024 re-upped the Liberal government’s efforts to improve affordability for low-and-moderate income Canadians, with new spending totaling $53 billion earmarked over the five-year horizon ($57 billion including spending since the Fall Economic Statement). Programs to fast-track the building of new homes and improve affordability were a key focus, with the cost amounting to $8.5 billion. Most of the spending is occurring in the middle years of the forecast horizon. Details on the national pharmacare program lay the groundwork for a more fulsome program down the road, but spending in this budget is on the low end at $1.5 billion over five years. While the government talked up productivity enhancing policies ($2.4 billion), largely in A.I. and computer infrastructure, only time will tell if these efforts improve the trajectory of the Canadian economy.
Some may question this notion given the “surprise” increase in the capital gains inclusion rate to two-thirds on capital gains over $250,000 and for all capital gains earned by corporations. As an offset on the business side, the government increased the lifetime capital gains exemption from $1 million to $1.25 million and introduced a new Entrepreneur’s Incentive.
The deficit is expected to ease from $40 billion in FY 2023-24 (1.4% of GDP) to $20 billion in 2028-29 (0.6% of GDP, slightly higher than in the FES). The debt-to-GDP ratio is expected to peak at 42.1% in the current fiscal year, before moving lower over the remainder of the budget forecast.
Read more from TD Economics. https://economics.td.com/canadian-federal-budget
How to prepare your home for extreme heat
(NC) While longer days and warmer weather are sure signs of spring, they also mean that heat waves are coming, bringing high temperatures and, often, high humidity. These weather conditions pose health risks, especially indoors where many heat illnesses and deaths occur. This year, stay cool by preparing your home before the heat arrives.
Here are some things you can do.
Check your air conditioning
If you have an air conditioner, make sure that it’s ready and working while the weather is still somewhat cool. If you don’t have air conditioning, identify places where you can escape the heat for a few hours on hot days, such as a mall, library or community centre.
Learn about heat warnings
Make sure you know when a heat warning is in the forecast so that you can take steps to keep cool before you feel the worst of the heat. Local forecasts will typically include these warnings, and municipalities will often share them widely. You can also get official government weather forecasts and alerts on your phone through the WeatherCan app.
Plan for the sun
Planning to spend most of the summer hanging out or barbecuing outdoors? Make sure that you have a covering in place to block out the heat of direct sunlight, whether it’s a tree, awning or umbrella.
When heading inside during hot weather you will also want to keep your home cool – make sure your blinds or curtains function properly to block out the sun.
Why go to the trouble?
Extreme heat and humidity pose serious health risks for everyone, especially in early summer when your body isn’t used to them. They can cause heat illnesses like heat exhaustion or heat stroke, which can be deadly. Older adults, infants and young children, people who work outside and anyone with a chronic illness, mental illness, or heart and breathing problems are at greater risk. But early preparation can help you stay safe.
Find more information on heat waves, heat illnesses and how to prepare at canada.ca/health.www.newscanada.com
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