New Surplus Allocation Act

[Said1]

Gee Martin, talk about impeccable timing. Couldn't have planned better if you had advisors advising you.

I wonder it this applies to Alberta too?

Ottawa to share the wealth


Last Updated Thu, 06 Oct 2005 07:01:57 EDT
CBC News

The federal government plans new legislation called the "Surplus Allocation Act" to share budget surpluses directly with Canadians.

The legislation will be introduced Friday.

The idea is to lighten the tax burden of as many as 15 million Canadians by sharing the wealth when the federal government rolls up budget surpluses.

Ottawa maintains a $3 billion contingency fund for national emergencies, and that fund will remain the priority call on a surplus.

But the new legislation will provide that the remainder of any surplus will be divided evenly three ways, among tax cuts, debt relief and new spending.

Today's National Post newspaper quotes an Ottawa source as saying, "taxpayers will now get a share of any unexpected surpluses.
"People like to pay less tax and this is good news."

The Globe and Mail reports that the tax break portion of the surplus will first be applied as a credit on income tax returns. Then the following year the individual exemption, the amount Canadians can earn tax-free, will be raised by the same amount.

The tax credit for any given fiscal year's surplus will be applied to the following year's tax returns.

"If you are already getting a (tax refund) your cheque will be bigger", the Globe quotes its source as saying. "If you owe the government money, you'll owe less".

The tax relief will depend on the size of the surplus, and in the absence of a surplus would disappear. In recent years Ottawa has tended to underestimate the size of the surplus, which, under current law, is used to pay down the public debt.

The surplus sharing program, along will a proposed new home heating oil rebate program, are seen are precursors to an upcoming federal general election. The election will be held not later than 30 days after the Gomery report on the federal sponsorship scandal is released. The report is expected in February. But it could come earlier if the Liberals were to lose a Commons vote that entails lack of confidence in the government.

Linl