Federal Budget 2017 Tax Highlights

On March 22, 2017, Finance Minister Bill Morneau tabled the second federal budget ("Budget 2017") of the Justin Trudeau-lead Liberals. Budget 2017 focuses again on the empowerment of the middle class by providing additional skills training and life-long learning initiatives, supporting a new National Housing Strategy, and creating additional affordable child care spaces. It further aims to close tax loopholes, eliminate perceived abuses of the income tax system, and allocate resources to combat income tax evasion and avoidance.

Canada's deficit for 2016-2017 is expected to be $23.0 billion, growing to $28.5 billion in 2017-2018, and gradually decreasing thereafter. These estimates decrease the possibility of Canada returning to a balanced budget in the near future.