You can provide input into Federal Budget 2020 – Act now
Finance Minister Morneau has announced a limited pre-budget consultation. Here is the link. To have your say, you are best to act this week, or at least by Friday, January 24.
Main Concerns and Priorities
For Budget 2020, CFAA’s main concern is that the government might increase taxes on rental housing. The government plans to review the capital gains inclusion rate. The government is also considering limiting the interest that can be deducted against business income. That could be a serious problem for rental housing because rental owners often carry high debt in order to obtain leverage.
For more details, about the Proposal to limit corporate interest deductibility, click here.
A way to address both issues in the Budget survey is to say “the government should avoid tax increases on businesses or rental housing”. Or if you prefer, to say “the government should reduce taxes on businesses and rental housing, or at least avoid tax increases on businesses or rental housing.”
The quickest way to provide input is to complete the survey at https://budget.gc.ca/2020/prebudget-prebudgetaire/index-en.html.
The survey asks for input on current government priorities (as laid out in the Throne Speech and the various mandate letters), but it leaves some room for other suggestions. As well, a written submission can be sent via email by scrolling to the bottom of the webpage at the link.
The key issues for rental housing providers are found in the survey section on “Strengthening the Middle Class”.
Within that section, there are several opportunities to provide an answer in “Other”. In view of the risk of tax increases, the key message to convey is that the government should reduce taxes on businesses and rental housing, or at least avoid tax increases on businesses or rental housing.
AFTER YOU COPY OR TYPE THE TEXT INTO “OTHER”, YOU NEED TO SELECT OTHER AS YOUR ANSWER.
Here are the key questions in the survey:
- b) “What is the most effective action the Government could take to make life more affordable?” You must choose one answer, but in “Other” you can type in (or copy in) – reduce taxes on businesses and rental housing, or at least avoid tax increases on businesses or rental housing.
- c) “How can the Government of Canada best ensure that Canadians can find and keep safe and affordable housing for themselves and their families?” You can choose as many of the three answers as you like. You can add “Other” – Expand the Canada Housing Benefit, and avoid tax increases on rental housing
- d) “What investment would best help Canadians get a good job?” Besides any answers you choose from the list, you could add “Other” – Avoid tax increases on businesses and rental housing to encourage investors to create jobs and housing.
Whatever sections you choose to fill out, toward the end of your survey, you will be asked, “What is your top priority for Budget 2020?” You may choose only one answer. CFAA expects readers would like “Deliver a responsible fiscal plan while continuing to move our economy forward” OR OTHER – Avoid tax increases on businesses and rental housing to encourage investors to create jobs and housing.
Feel free to encourage others to complete the survey. Using your own words is also an excellent idea.