Tax Memo: 2009 Federal Budget

Big Spending, Little Tax Relief

Federal Minister of Finance Jim Flaherty presented the minority government's budget on January 27, 2009, against the backdrop of a deepening global economic crisis. The stated goals of Budget 2009 — Canada's Economic Action Plan are to stimulate economic growth, support Canadians and invest in Canada's long-term growth. To this end, the budget provides an economic stimulus of almost $40 billion over two years, contributing to projected deficits of $33.7 billion in 2009–10 and $29.8 billion in 2010–11. Although the budget is big on spending, it provides little in the way of new corporate and personal tax relief.

The budget does not revise corporate or personal tax rates. It does, however, offer tax assistance to manufacturers and Canadian-controlled private corporations, and proposes the repeal or review of previously announced international tax measures. It also provides modest tax savings to all personal taxpayers, while introducing targeted tax credits to encourage home ownership by first-time home buyers and renovations by all homeowners.

2009 Federal Budget: Full commentary (174 KB) Download the full PDF Tax Memo.

Tax Memo: 2009 Federal Budget: Highlights (104 KB) Download the full PDF Tax Memo.