New Canadian Budget

March 2, 2008

Well, this week I’ve decided to look at more of the business side of things instead of the technology side of things. I’ve also decided to take a source outside of our weekly RSS reading (one from my personal list), and use The Globe and Mail’s financial/business area section.

This particular topic is on the newest budget from Steven Harpers government. I’m not overly interest in politics, as I’ve stated before, but I love personal finance and it seems the centerpiece of their budget is a new savings fund. Believe it or not, I know more about USA finance then Canadian, but what I do know is that I haven’t heard of this kind of fund in anything I’ve read of before.

Most savings fund cause you to be taxes at some point, whether it is prior to investing your money (through investing after income tax dollars) or when you withdraw your money from the investment. I haven’t yet read of any savings funds that taxation is avoided, that is, until now. The new budget states that this savings fund will be of untaxed dollars, and their will be no tax when the money is withdrawn. This is absolutely incredible. The only problem is that there will be an annual cap of $5000, which I’m sorry to say, is quite pathetic.

Regardless, I’ve very excited to see this new savings fund, even if the cap isn’t very high. I’m not going to have to worry about that anyway, considering I’m in school for the next couple of years and won’t come near that cap.

Anyway, even though I state that I love personal finance, I have only truly started to read up on it within this past school year. I’m by no means a pro, actually I still consider myself a rookie. If anyone knows more about this topic then me, I’d love to hear it. I’ll probably read up on it some more in the next couple of days.

If anyone wants to read the article I read, it is A savings fund but no capital gains tax break.


David McKenna


One Response to “New Canadian Budget”

  1. imrankha Says:

    Every new program has its supporters as well as its critics. However, I beleive this “might” lead to more savings which is a main driver of economic growth. As we know savings lead to investments which lead to growth in production which leads to growth in real GDP.

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