{"id":1781,"date":"2021-04-20T19:57:11","date_gmt":"2021-04-20T19:57:11","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/thewonggroup\/?p=1781"},"modified":"2023-07-10T15:33:47","modified_gmt":"2023-07-10T15:33:47","slug":"economic-and-tax-highlights-from-the-2021-federal-budget","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/thewonggroup\/economic-and-tax-highlights-from-the-2021-federal-budget\/","title":{"rendered":"Economic and Tax Highlights from the 2021 Federal Budget"},"content":{"rendered":"

Economic and Tax Highlights from the 2021 Federal Budget<\/h1>\n

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“The truth is that the tradegy of COVID-19 has created a window of opportunity.”<\/em><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n

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On April 19, 2021, Canada\u2019s Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland delivered the Liberal government\u2019s first budget in over two years. The 739-page budget entitled, \u201cA Recovery Plan For Jobs, Growth, And Resilience<\/a>\u201d focused primarily on finishing the fight against COVID-19, creating jobs and growth, fostering a resilient and inclusive recovery, while continuing this government\u2019s objectives in building the middle class, creating a responsible government and a fair tax system.<\/p>\n

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“When COVID-19 first hit, it pushed our country into its deepest recession since the Great Depression.”<\/em><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n

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As for the country\u2019s projected financial position, the COVID-19 support and relief measures over the last fourteen months by the government is unprecedented. Deficits of $354.2B in 2020-21, $154.7B in 2021-22, and $59.7B in 2022-23 are projected, and the Federal debt-to-GDP ratio is anticipated to hover between 49-51% over the next three years.<\/p>\n

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Budget 2021 Predictions<\/h2>\n

To the relief of Canadians and contrary to widespread speculation, the government did not increase the capital gains inclusion rate, nor were changes announced with respect to the principal residence exemption.<\/p>\n

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Key Initiatives: Women in the Economy; Early Learning and Child Care Plan<\/h3>\n

COVID-19 has affected all Canadians, but women have been disproportionately affected. In the labour market, women were hit earlier and harder, and their jobs continue to recover more slowly due in large part to the closure of schools and childcare facilities and inability to return to the workforce due to their caregiving roles. Women\u2019s participation in the workforce, their susceptibility to job insecurity and predominant involvement in health, education and senior sectors were noted throughout Budget 2021.<\/p>\n

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\u201cInvesting in early learning and child care offers a jobs-and-growth hat trick: it provides jobs for workers, the majority of whom are women; it enables parents, particularly mothers, to reach their full economic potential; and it creates a generation of engaged and well prepared young learners.\u201d<\/em><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The key announcement in Budget 2021 is the introduction of a Canada-wide Early Learning and Child Care Plan.<\/p>\n

Key points of the Early Learning and Child Care Plan:<\/p>\n