Finance Minister Chrystia Freeland tabled the 2021 Federal Budget on April 19, 2021. It has been a long time coming with the hiatus last year due to the COVID-19 pandemic.
The budget deficit is pegged at $354 billion. There has been much speculation about what kinds of revenue-raising measures would be implemented to pay for the level of government spending that has taken place to soften the pandemic’s economic toll. Based on what’s in the 2021 budget, we’re going to have to wait to see how we’re going to pay for all of this stimulus.
What’s not in this budget is probably more interesting than what is. No increase in the capital gains inclusion rate, no change to the principal residence exemption, no family wealth tax, no income tax rate increases for individuals or corporations. What follows is a summary of budget measures that may be of interest to investment and insurance advisors, and implications for planning using insurance and investments.
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