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Hello All, Within the next few days (assuming all goes smoothly) Canadians will decide whether they are happy with the current leadership or whether it is time for a change. The two major parties in Canada - the liberals and the conservatives - unlike the US are mostly centrist in their views. In fact, in this election, it can be hard to distinguish one platform from the other as both sides are promising a smorgasbord of incentives with what appears to be little difference in their core policies. To counter these middle of the road positions, we also have the NDP on the left which is favoured by those who believe in a higher degree of socialism and the PPC which has emerged this year as an option for the more right wing element that has historically been part of the conservative party. Each of the parties has made various promises, if elected, to court voters who they think will help them win. Often groups are specifically identified and targeted based on each party’s analysis of the ridings that are the most strategic. Many of these promises impact our bottom line, directly or indirectly. Below I have outlined some of the promises from the two major parties: The Conservatives seem to have more specific incentives targeted towards workers and small businesses and a specific goal to encourage Canadians affected by the pandemic to get back into the workforce . These include: Paying up to 50% of the cost of new hires once the Covid wage subsidy is phased out. Increasing the amount of the Canada Workers Benefit which is a tax incentive for people who are working but earn less than $25,000. Providing a 25% tax credit on amounts up to $100,000 that Canadians personally invest in a small business over the next two years. Increasing the amount of loans available to businesses affected by the pandemic from $60,000 currently to $200,000, including retail, hospitality and tourism Providing a 5% investment tax credit for any capital investment made in 2022 and 2023 of which $25,000 would be refundable for small businesses. Increasing the apprenticeship tax credit for the next three years. Investing in the Canada Job Training Fund which helps workers to improve their skills. Reforming the Business Development Bank so that small businesses have greater access to their loan programs. Converting the existing child-care expense deduction into a refundable tax credit to cover up to 75 per cent of child-care costs for lower-income families Investing $1 billion into electric vehicle manufacturing One month GST holiday in December.
More details about the Conservative platform. The Liberal plan appears to be more focused on increasing taxes for specific groups and introduction of a federal child care plan. It promises the following: Extension of the Canada Hiring Credit (CRHP) that was introduced in the spring. Increasing taxes on banks and insurance companies. Introduction of a new minimum tax rate of 15% for people in the highest tax bracket (approximately $200k and over) Tax on individuals who buy homes expressly for the purpose of flipping. Luxury tax on new cars and private aircraft worth over $100,000 Roll out of a new childcare program that aims to cut daily childcare expenses to $10 per day within the next five years. 50% cut in corporate tax rates for corporations and small businesses that make zero emissions technology Increasing the maximum loan amount from the Canada Small Business Financing Program to $500,000 from $350,000.
More details about the Liberal platform The decision about which candidate is best can be difficult for many and for most of us, is based on more than how it affects our bottom line. Unfortunately, there is a lot of misinformation as election campaigns become more divisive and focused on denigrating the other candidate rather than concentrating on their own vision for our country and future. Regardless, I believe it is important to participate in the process and go out and vote, even if it is for the least worst candidate.
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