St. Stephen – The 2017 Fall Economic Statement will deliver more Canada Child Benefit Support, cut the federal Small Business Tax Rate, enhance the Working Income Tax Benefit, and introduce other measures to help to grow the economy. The economic update also highlighted the Canadian economy`s stronger than anticipated performance this year, a result of the government`s plan they have been pursuing since 2015.
“People and businesses in New Brunswick Southwest will benefit from the new measures we are taking,” said Karen Ludwig, Member of Parliament for New Brunswick Southwest. “The Canada Child Benefit will let parents invest in their families, and the small business tax cut will help entrepreneurs invest in their businesses.”
New measures announced in the Fall Economic Statement include:
- Strengthening the Canada Child Benefit (CCB) by making annual cost of living increases starting in July 2018—two years ahead of schedule. For a single parent of two children making $35,000, a strengthened CCB will contribute $560 more in the 2019–20 benefit year towards the cost of raising his or her children. That means more money, tax-free, for books, skating lessons or warm clothes for winter. The added confidence the CCB brings to families has been shown to have an immediate impact on economic growth.
- Enhancing the Working Income Tax Benefit (WITB), which is a refundable tax credit that cuts taxes for eligible people already in the workforce and encourages others to get a job, by an additional $500 million per year starting in 2019. Our enhancement will allow-income workers—including families without children and the growing number of single Canadians—to keep more hard-earned money from every paycheque by further enhancing the Working Income Tax Benefit. This enhancement is in addition to the $250 million annual increase that will come into effect as part of the enhancement of the Canada Pension Plan. Taken together, these two enhancements will boost the total amount the Government spends on the WITB by about 65 per cent in 2019, increasing benefits and expanding the number of Canadians who qualify.
- Helping small businesses invest, grow and create jobs by lowering the small business tax rate to 10 per cent, effective January 1, 2018, and to 9 per cent, effective January 1, 2019. This will provide a small business with up to $7,500 in federal corporate tax savings per year to reinvest in and grow their business.
- Make important changes to the tax system that will ensure Canada’s low corporate tax rates go towards supporting businesses.
The economy has created over 450,000 jobs in the last two years, and the unemployment rate has dropped to its lowest level since 2008.
- Canada now has the fastest growth in the G7, giving the Government more flexibility to re-invest the benefits in individuals and families.
- The Canadian economy is growing faster than it has in a decade, with average growth of over 3.7 per cent over the last four quarters. This makes Canada the fastest growing economy in the G7 – growing 40% faster than the United States or Germany, and more than twice as fast as France, Japan or the UK.
- Growth is forecast to be 3.1 per cent in 2017—significantly above expectations at the beginning of the year.
- 90% of families receive more through the CCB than they did under the previous government`s programs.
- There were over 3.3 million families receiving CCB payments in 2016-17, which provides $6,800 on average per family.
- Our new CCB measures will provide an additional $5.6 billion in support to Canadian families over the 2018-19 to 2022-23 period.
- 4 million Canadians benefited from the Working Income Tax Benefit in 2015.
- The maximum amount of WITB for 2017 is $1,043 for a single person without children or $1,894 for a family.
LINK: Fall Economic Statement
Director of Communications
Office of Karen Ludwig, MP for New Brunswick Southwest