Canada’s Finance Minister Bill Morneau announced the federal government’s fall economic update today. The report is titled, Investing in Middle Class Jobs.
The Liberals will spend billions of dollars trying to give Canada an edge in the world economy, but the plan is mainly focused competitiveness with the U.S. The business tax rate currently sitting at 17 per cent is set to drop to 13.8 per cent, according to Morneau.
Tax credits and tax cuts are key words found in the report. Of particular note for businesses is the more than $14 billion earmarked to write off the full cost of machinery and equipment used for the manufacturing and processing of goods.
The government’s climate strategy remains at the top of the agenda, too. Effective immediately, businesses will be able to write off the full cost of anything that can be classified as “clean energy equipment.”
Competitiveness is the theme of the plan, and the government also proposes roughly $1.1 billion over the next few years to open new markets for Canadian exporters. The plan also aims to add another $800 million over five years to the strategic innovation fund which provides funding for “innovative” investments in all sectors.
Balanced budget? Sit tight.
What’s missing in the update is a plan is to get out of the red. The deficit is projected to rise to $19.6 billion this year. The update estimates next years deficit will be $18.1 billion and by 2023-2024 down to $11.4 billion.
To read the full report, click here.