More Spending, Less Taxes: Sask. a business analyst provides an overview of the federal budget
Martin said the invasion of Ukraine showed how “sadly behind” Canada is on its defense commitments, and noted that could be in the budget.
The business community is also anticipating a possible expansion of capital gains.
“If you’re selling property other than your house, you basically have to take half of what you’ve earned in income,” Martin explained.
He said some think it could go from half to two-thirds or three-quarters.
“(It was) like this years ago, then they went back to half,” Martin said. “I think there will be a lot of grunts and moans about it.”
Against this, rising commodity prices. Prices that have risen as high as they have over the past year offer a potential “windfall” for the government, Martin said.
Another factor that could prevent a tax hike for Canadians in this budget is preloaded stimulus, a term many are unfamiliar with, according to Martin.
“During the pandemic, we couldn’t go and spend money,” Martin explained. “We were locked down…so people hoarded a lot of money.”
He said the argument is that it would mean the government doesn’t have to intervene, instead allowing consumers to stimulate the economy by spending.
Moe steps in with a budget wishlist
Saskatchewan Premier Scott Moe said he had two main hopes ahead of the release of the budget.
These include more money for health care transfers and the transfer of the carbon tax regime to be administered by the provinces.
Moe said about $600 million is spent on surgeries in Saskatchewan each year, and the province has grown in recent years. He said the $61 million in financial assistance already promised to Saskatchewan by the federal government will help, but it has limits.
“We appreciate these dollars, but they are one-time dollars and they do nothing for the continued stability of our surgical capacity,” Moe told reporters earlier this week.
Repositioning the carbon tax to become a provincial responsibility, Moe said, would allow provinces to move forward with the provincial offset program and the provincial carbon credit program.
“And (it would) really encourage companies to continue investing in the sustainable production of our products, which we are already the most sustainable in the world,” Moe said.
The Prime Minister said that there was great importance to be placed on the sustainable production of food, fuel and fertilizer.
He said this has been a problem in the UK, where reliance on such resources from Russia has tested energy and food security.
– With files from Lisa Schick of 980 CJME