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ARTICLE · 11 APRIL 2022

Federal Budget 2022: Declining Deficits And Measured Tax Changes

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Federal Budget 2022 (Budget 2022) is a budget of optimism after two years of recession, pandemic, and now geopolitical instability.

CanadaTax
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Federal Budget 2022 (Budget 2022) is a budget of optimism after two years of recession, pandemic, and now geopolitical instability. It speaks of the recovery of all jobs lost during the recession, the rebound of real GDP in Canada to a level higher than before the pandemic, and a booming economy.

In Budget 2022, the Minister of Finance hit all the hot topics on social media, from affordable housing to the environment and even the current conflict in Ukraine, weaving them into an unexpectedly prudent fiscal narrative.

By picking the pockets of Canada's banks and life insurers with additional taxes, Budget 2022 gives the government a massive source of new revenue which in turn helps the government to forecast substantially lower deficits over the next several years. Indeed, the government forecasts that Canada will have one of the lowest deficits as a percentage of GDP among the G7 countries through to 2023.

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