The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

Taxes and source deductions will continue to rise despite last week’s grim economic forecasts from the Finance Department. Here is what’s in store based on forecasting in the Fall Economic Report, released November 3.

New taxes are on the horizon for high net worth individuals. While several new tax measures were introduced in the November 3 Mini Budget, many have been created to propel forward defined economic incentives for businesses.  Of special note: residential property flipping is getting more expensive. A synopsis follows.

The Finance Minister introduced Bill C-32, Fall Economic Statement Implementation Act on Friday November 4.  Noteworthy is the complex pathway to law:  this document encompasses previously announced measures from the April 2022 budget and finally the date of implementation of the First Home Savings Account.  A synopsis follows; be sure to request a copy of the Knowledge Bureau’s Special Report on the Fall Economic Statement for greater detail.

Investing time and money into new Specialized Credentials or continuing professional develop is an important undertaking and you want to make the most of both.  That’s why you’ll want to learn more about the tuition fee amount and the Canada Training Credit (CTC) as potential tax assistance when you take a Knowledge Bureau course. 

Are you looking to increase your multi-generation client base?  Here’s an obvious need and a huge void: 70% of private company owners in Canada plan to either transfer or sell their businesses when they retire—but many don’t have a plan in place. In fact, almost half plan to pass ownership to the next generation, but of those, 47% of them don’t have a succession plan[i]. You can fill this big void by advising family business and we have a targeted CE course to help you do that. 

Fall Economic Statement 2022 November 3, 2022.  Knowledge Bureau will be deciphering and interpreting the economic, tax and financial news the Finance Minister will announce. Mark Your Calendar for a Special Knowledge Bureau Report on November 9 and don’t forget to register for the comprehensive CE Summit workshop on November 16. Enrol now to train on the critical issues that Canadian taxpayers will face in Canada’s most current year end tax planning update.