Budget 2019: Positioning For A Fall Election

With Canada's top marginal tax rates described by some analysts as "punitively high," and with the Canadian economy sliding to an annualized rate of growth of only 0.4 per cent in the fourth quarter, many were hoping for tax reductions in Budget 2019 that would help make Canada more competitive. Minister of Finance Bill Morneau seemed to acknowledge the economic issues facing Canada, saying in his budget speech: "There's a growing sense of uncertainty taking root around the world, Mr. Speaker, and Canada is not immune to those worries."

Unfortunately, Budget 2019 proposes no changes in the tax rates, either for individuals or corporations. Instead, Budget 2019 proposes a disconnected flurry of tweaks and changes to a variety of personal and business tax rules having a relatively small financial effect. The Department of Finance itself estimates the cumulative net fiscal impact for the 2019/2020 fiscal year of all tax measures proposed in Budget 2019 to be a paltry