Federal Budget Summary: Housing and Capital Gains Tax
In Budget 2024, the Liberal government renewed its commitment to enhancing affordability for low- and moderate-income Canadians. New spending totaling $53 billion over five years ($57 billion including expenditures from the Fall Economic Statement) was allocated for this purpose. A significant portion of this budget, $8.5 billion, was dedicated to accelerating the construction of new homes and addressing affordability challenges. Most of the spending is concentrated in the middle years of the forecast period.
Additionally, the budget outlined details for a national pharmacare program, setting the stage for a more comprehensive program in the future, albeit with a modest allocation of $1.5 billion over five years. Productivity-enhancing initiatives, particularly in artificial intelligence (A.I.) and computer infrastructure, received attention with an allocation of $2.4 billion. The impact of these efforts on the Canadian economy will be assessed over time.
However, the decision to increase the capital gains inclusion rate to two-thirds on gains exceeding $250,000, including those earned by corporations, raised questions among some stakeholders. To balance this, the government raised the lifetime capital gains exemption and introduced the Entrepreneur’s Incentive.
The budget projects a reduction in the deficit from $40 billion in FY 2023-24 (1.4% of GDP) to $20 billion by 2028-29 (0.6% of GDP, slightly higher than in the Fall Economic Statement). The debt-to-GDP ratio is expected to peak at 42.1% in the current fiscal year before declining in subsequent years.
Read more from TD Economics. https://economics.td.com/canadian-federal-budget
How to Prepare Your Home for Extreme Heat
As spring brings longer days and warmer weather, it also signals the onset of heat waves characterized by high temperatures and often oppressive humidity. These weather conditions can pose significant health risks, particularly indoors where many heat-related illnesses and fatalities occur. To ensure a safe and comfortable summer, it’s important to prepare your home before the heat sets in.
Here are some steps you can take:
Check Your Air Conditioning: If you have an air conditioner, ensure it’s in good working condition before the weather gets too hot. If you don’t have air conditioning, identify alternative places where you can seek relief from the heat, such as shopping malls, libraries, or community centers.
Stay Informed about Heat Warnings: Stay updated on heat warnings in your area so you can take preventive measures before the heat becomes unbearable. Local weather forecasts usually include heat warnings, and municipalities often share this information widely. You can also receive official government weather forecasts and alerts on your smartphone through apps like WeatherCan.
Plan for Sun Protection: If you plan to spend a lot of time outdoors during the summer, ensure you have adequate sun protection. This could include natural shade from trees, awnings, or umbrellas to shield you from direct sunlight. Indoors, ensure your blinds or curtains are effective at blocking out excessive sunlight to keep your home cool.
Why is this important? Extreme heat and humidity can lead to serious health issues, especially early in the summer when the body is not acclimated to such conditions. Heat-related illnesses like heat exhaustion or heat stroke can be life-threatening. Vulnerable groups such as older adults, infants, people who work outdoors, and those with certain medical conditions are at higher risk. However, early preparation and taking appropriate precautions can help mitigate these risks and keep you safe during hot weather.
Find more information on heat waves, heat illnesses and how to prepare at canada.ca/health.
