Pre- Budget Consultations: Speak Up For Tax Changes

By Evelyn Jacks

Finance Minister Jim Flaherty is asking Canadians for their views on how the upcoming federal budget should be structured to meet social and economic objectives. If you have an opinion on how to position Canada for economic and employment growth while reducing government spending ó all heady stuff ó go to the federal Department of Finance's new website at: online pre-budget consultations.

The website's online polls asks four questions that all require a high level of financial literacy; a couple of them even require some knowledge of existing provisions. But don't let that stop you: what counts is what's left at the end of the day and your interests matter.

The first consultation question, for example, focuses on Canadian businesses and asks whether there are any measures in the next phase of Canada's Economic Action Plan that should be revised, extended or shifted to promote job creation and economic growth?

In my view, a few need extension, others should be added. For example, the federal budget should:

• Increase the restriction on claiming capital cost allowance (currently $30,000 plus taxes for "luxury vehiclesî). This could stimulate car sales while making the limit more reflective of market pricing.
• Increase write-offs of costs associated with setting up home workspaces and acquiring technology for those who have been downsized.
• Increase the tax-free withdrawal amount under the RRSP Lifelong Learning Plan to encourage entrepreneurs and their families to go back to school to get skills required to grow their businesses.
• Increase the tuition/education/textbook transferrable amount to supporting individuals from $5,000 to the full amount of unused credits.
• Extend the temporary Hiring Credit for Small Business.
• Extend the Targeted Initiative forOlder Workers to stay in the workforce.
• Extend the temporary accelerated capital cost allowance treatment for investment in manufacturing or processing machinery and equipment.

It's your money, your life. Do you have any good ideas for stimulating the Canadian economy in a fragile world through our tax system? Have your say in the pre-budget consultation process. It could positively affect after-tax dollars in the future.