As promised, we are breaking down the 2017 Canadian federal budget a bit more to understand how one of the key measures will affect people in our community. As the government tabled their budget it became clear they were branding it as an “innovative” approach to preparing Canada for the foreseeable future. So with this theme of innovation, we are going to discuss some of the innovative measures targeting job training and growth.
Related: Breaking Down The Budget: Part 1
No one likes debt. It sits in the back of our mind and we are constantly worried about how and when we can pay it off. Most of us have experienced this at some point in our lives. And as the ever-changing job market reacts to trends in the world economy, some of us are left wondering, “what am I going to do now?”
Well, the government has pledged over $5 billion for skills development “for everyday folks” who are looking to modernize their skills or go back to school. Some of these measures include allowing out of work Canadians to go back to school without forfeiting their employment insurance benefits. This is part of a new project designed to allow adults to access loans or grants they previously were excluded from.
This measure addresses a key trade-off many out-of-work Canadians identify: losing EI but gaining new and employable skills. The fear of growing debt prohibited many from seeking out training and getting back in the workforce. With this concern addressed, many Canadians can seize the opportunity to receive training without worrying about their immediate financial well-being.
Another key measure within the budget is the rollout of a specific innovation and skills plan targeting 6 sectors of growth. These sectors are: advanced manufacturing, clean technology, digital industries, the agri-food sector, clean resources, and health and bio-sciences. These industries are poised to grow in the foreseeable future and are safe bets to offer well-paying jobs to qualified candidates. Canadians can expect $3 billion to support innovation and job training in these sectors.
No one likes debt. It always sits in the back of our mind and we are constantly worried about how and when we can pay it off. You’ve heard this before. Yes, we mentioned this a few paragraphs ago but you most likely heard about the large debt our government is holding – $28.6 billion to be exact. Well, Canadians can expect to shoulder this debt in some new and unwelcome ways.
Part One of this series highlighted the rising EI premiums. We now know Canadians can expect a five-cent increase up to $1.68 for every $100 of insurable income. For Canadians living pay cheque to pay cheque – some of which no doubt belong to the ‘middle class’– this isn’t an ideal development.
Another area where Canadians will notice their pocketbooks being hit will be the elimination of the public transit tax credit. We know this isn’t a significant hit for rural communities, but for students off at post-secondary school using public transit this is certainly an unwelcome development.
And finally, Canadians have most likely already been affected by the increased tax on alcohol sales. Admittedly, it is a two per cent increase, but the government has still been subjected to some fierce criticism surrounding these increases. Interim Conservative leader, Rona Ambrose, said the government is “nickel and diming Canadians to death” and “if you’re a guy who takes the bus to work and back, or to university and back and when you get home you like to a have a beer, well both of those are going to cost you more.”
Everything must be taken with a grain of salt. Yes, job training and innovative measures are coming to help Canadians prepare for the changing job market. If you are looking to advance your current skill set or are in need of an entirely new skill set then help is on the way. Unfortunately, this help comes at a cost: Canadians can expect taxes to rise and their burden of the federal debt to rise as well.
We hope this has been some help to you. If you’d like to know more about how the budget will affect your taxes or financial future please contact us. If you have concerns or questions regarding your portfolio, feel free to reach out to one of our knowledgeable team members and we’d be happy to speak with you.
Enjoyed this article? Did you find a useful tip? Then share on Social Media! Let someone else get the same benefit by clicking on the button below. And leave a comment to let us know that you enjoyed it.
Until the next time,