The government's priorities

Since my report from last week, the new Liberal Government has presented its throne speech, and has revealed its priorities for the upcoming legislative session of Parliament. As you may have heard, this throne speech was a short one, and focussed on five general topics. 

The first topic related to proposed taxation changes and spending priorities, a subject to which I will further refer later in my report, as it is also the subject of new legislation.

The second topic related to government openness, including a promise to end our first-past-the-post voting system, and also to reduce partisanship in the Senate. 

The third topic related to promises such as putting a price on carbon, and introducing changes to the environmental assessment process.  

The fourth topic related to new efforts to focus on the relations between government and First Nations, to continue efforts with the resettling of 25,000 Syrian refugees, and increased support for the CBC and Radio Canada.  

The fifth topic was varied, and included promises to downsize our military, legalize marijuana, continue pursuit of trade opportunities, and provide greater support for victims of domestic violence and sexual assault. 

The above is a brief summary of the key points within the throne speech. The speech was also heavily criticized for being silent on agriculture, efforts to increase jobs and support the economy, and also - a real concern for British Columbia and our region - no mention of the expired Softwood Lumber Agreement. 

This is a point I have been active on, raising in the House several times already, given the importance of forestry to communities such as Princeton, Merritt and West Kelowna, which are home to lumber mills that are significant employers. Having no new arrangement to replace the Softwood Lumber Agreement creates uncertainty, chasing away much desired investment from our economy. Fortunately, the BC MPs on both sides of the House with whom I have discussed this have positively responded, and are calling on the government to make this a priority.

Also occurring in the House of Commons this week is the debate on a government bill to change the Income Tax Act, a subject that is generating a fair bit of discussion in Ottawa at the moment. During the election, many will recall that the Liberals promised a revenue neutral middle class tax cut as part of a fully-costed Liberal platform. Now it has been revealed that, in fact, the Liberal math was in error and this tax cut actually creates another deficit of $1-2 billion annually, possibly more. 

The NDP has also raised opposition on the fairness of the Liberal tax cut. For those low income families most in need, earning up to $44,700 per year, there is, as the NDP points out, no tax cut at all from these proposed Liberal tax changes. 

In fact, the proposed Liberal tax cut will only apply to income earners in the next tax bracket who earn between $45,000 up to $ 90,000 per year. However, the way Canadian taxes are structured, the lower income tax rate on this amount of money earned also applies to those who earn between $90,000 up to $199,000, as the Liberals plan to increase taxes on those who earn over $200,000 per year. 

In other words a family earning $44,000 per year will receive no income tax cut, whereas a family earning $199,000 per year will see a tax cut. As the Liberals have a majority, it is expected these tax changes will be passed in time for the next taxation year.

One other change is that the Liberal government will also decrease the maximum contribution limit for a TFSA account, after it was just increased to $10,000 annually in the 2015 budget. It is expected that the Liberals will reduce the TFSA deposit maximum back to $5,500, so 2015 may be the only year it is possible to contribute the current limit of $10,000. 

Also expected this week is an announcement from the Prime Minister on when the first chartered, or possibly military, aircraft will arrive to Canada with Syrian refugees. 

If you have comments, questions, or concerns I can be reached at [email protected] or toll free at 1.800.665.8711. 

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.