The biggest ticket item in the FES is the extension of the Accelerated Investment Incentive. This is a huge deal.
This allows companies to save taxes when they invest, and only when they invest. It will cost $17.9B in foregone revenue over the next 6 fiscal years.
This allows companies to save taxes when they invest, and only when they invest. It will cost $17.9B in foregone revenue over the next 6 fiscal years.
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Because in 2025 the US Congress will almost surely extend the equivalent measure for the US.
We need investment in Canada and this FES action maintains our strength.
We have a low marginal effective tax rate on new investment. That's great.
But there are a lot of good supporting measures too.
Here's one:
I like the attention on removing red tape, pushing harder on internal trade, and improving slow slow slow project reviews.
Many people have ideas to improve or replace SR&ED. Well, the budget envelope for your new ideas is now bigger, so have it and let's hear better ideas.
But for now SRED is bigger.
For federally regulated industries, more regulations against "wage theft".
For all Canada (I think?) movement to restrict non-compete agreements to give workers more freedom of movement.
Don't worry, Laurier fans, Sir Wilfrid will be on the $50.
(No word on Mackenzie King...)
These are not recurring expenses. Still, money is money and that gets added to the debt.