2006 Budget: Something for Everyone
May 15, 2021

Week of May 15 – May 19, 2021

Two weeks ago, Finance Minister, Jim Flaherty, and the new Conservative Government delivered the 2006 Budget to Canadians. I would like to take this opportunity to share some of the highlights of the budget with you and demonstrate how each individual and family in Dufferin-Caledon, will benefit from it.

The new budget will deliver $20 billion in tax relief over two years – that is more tax relief than the last four federal budgets combined. For every dollar in new spending, Canada’s new Government delivers two dollars in tax relief. In particular, the budget reduces the G.S.T. from seven per cent to six per cent effective July 01, 2006. A reduction in the G.S.T. will benefit all Canadians, including those who are low income. A reduced G.S.T. will also make Canadian products more attractive to Canadian consumers and as a result, will strengthen the economy. This initiative of the Federal Government is part of a package of tax measures designed to ease the tax burden on hardworking Canadian families and businesses.

Families will also benefit from this budget with the introduction of the Universal Childcare Benefit, which will provide all families with $100 per month for each child under the age of six, effective July 01, 2006. The budget has also set aside $250 million per year for a new program to support the creation of child care spaces beginning in 2007-2008. In addition, the budget will also introduce a tax credit to promote physical fitness among children, effective January 01, 2007. The credit will be provided on up to $500 in fees for programs of physical activity for each eligible child under the age of sixteen.

Seniors will also benefit from the new budget. The budget will increase the maximum amount of eligible pension income that can be claimed under the pension credit to $2,000, effective for the 2006 and subsequent taxation years. This is the first increase since 1975 and will benefit nearly 2.7 million taxpayers receiving qualifying pension income. This will also remove 85,000 pensioners from the tax rolls.

The needs of farmers were also addressed in the recent budget. The Government has committed to an additional $2 billion in funding over two years, $1.5 billion of which will be allocated in Budget 2006. The budget will also provide an additional $500 million per year for farm support, as well as a one-time investment of $1 billion, to assist farmers in the transition to more effective programming for farm income stabilization and disaster relief.

Students will benefit from the recent budget. A new $500 tax credit was included, which will help approximately 1.9 million post-secondary students with their textbook costs. The budget will also make all scholarship, fellowship, and bursary income received by post –secondary students, exempt from income tax by eliminating the current $3,000 exemption limit. Furthermore, the budget has expanded eligibility for student loans and has provided a tax credit for monthly transit passes that will assist students who use public transit.

These are just a few highlights of the 2006 Budget. The Budget delivered on many of the Federal Government’s campaign promises and priorities that Canadians wanted and supported. I am very pleased to see how individuals and families alike, here in Dufferin-Caledon, will benefit from the budget and look forward to ensuring that it will be passed as quickly as possible, so we may all begin to enjoy the various aspects of it.
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