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Canajun Finances Home » Budget Spring 2006: What’s in it for me

Budget Spring 2006: What’s in it for me

A blast from the past from 2006 (before the 2008 Financial Crisis).

This is the first budget that I can remember where there is more things in this for me (Big Cajun Man) than for most other Canadians, and I’d like to say, “It’s about bloody time!”. I have railed and ranted about how single income families which were the backbone of Canada (not sure if we are any more), don’t get any tax breaks, well, I can’t say we don’t get ANY, but I can say we still don’t get ENOUGH (gotta love analysts who talk out of both sides of their mouths).

What are the highlights for me? (single income family with 4 kids one under the age of 6, remember):

  • GST drops by 1% on July 1. Who cares? I think this is going to be a BIG mistake very soon, because it is just not enough. Yes, I will see it every day, but does it really put money back in my pocket? A little, but my gut says this is “window dressing”.
  • So the lowest tax rate is cut to 15.5% (but it’s already been taxed at 15% so this isn’t really a cut at all, it’s a tax grab). This raises/lowers my taxes because that is how much the first $36,400 I make is taxed.
  • Basic personal tax exemption rises by ??? I can’t find where this is written down as an exact value. The Canada Revenue (Finance) site I can find is here, but it doesn’t say either? So my tax exempt level is dropped a little (with a promise of more later).
  • There is a $1200 Universal child-care benefit paid, but it is taxable, however, it is taxed at the lower spousal income. So people like me who has a wife staying at home, won’t pay much if any tax on it. Sweet!
  • I will get 15.5% of Bus pass charges kicked back to me, which is great because as of September I will be buying 3 bus passes a month. Now whether I can claim all three passes, is another story.
  • Children under 16 who are in a sports program {sic} can get their parents a tax credit of up to $500.00, this could be good too (my kids are active kids).

As an interesting aside, the government pays $34.1 BILLION dollars a year on INTEREST charges for the National Debt. You thought your credit card interest payments were high? Amazing!

Another interesting point is that Scholarship and Fellowship funds will be tax exempt for students. Doesn’t touch me right now, but a good thing to know.

Interesting stuff folks, read those links I have put up as well and see where you fit in.

Of course if this budget fails, we are off to another election (Oh Boy!!!)

Feel Free to Comment

  1. Hmmm… “Children under 16 who’s kids are in a sports program”…. So you need to be under 16 and have children to claim this one? Not too many 15 year old parents with kids in sports I think 😉

  2. Canadian Capitalist

    Big Cajun: You would get more tax cuts due to the budget than you think, because you are not taking the Canada Employment Credit into account. That is $1000 tax credit starting next year which will be worth $155 in tax savings.

    Overall, you get the slightly less in income tax savings than now but you also get the GST tax cut. Me, I am smiling this morning 🙂 Cheers!

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