2009 Federal Budget Tax Measures - Commentary

In the midst of what Finance Minister Jim Flaherty described as an extraordinary time in our history — a global financial crisis and a global recession — the fourth Federal Budget of the Conservative Government was tabled today in the House of Commons. The Budget is replete with spending initiatives, but is somewhat light in new tax measures for businesses. The focus is principally on the individual taxpayer, which is perhaps not surprising given the election risk facing the Government.

Arguably, the Budget is somewhat timid in its tax measures in these unusual times. Additional measures could have been incorporated in the Budget to deal with the liquidity problems confronting many Canadian businesses. These could have included accelerating the planned reductions of corporate income tax rates to 2009, extending the loss carryback period from three to five years (matching President Obama's proposed business tax reforms), allowing losses to be sold by a taxpayer