On October 24, 2017, the Minister of Finance released the 2017 Fall Economic Statement, and I am pleased to be able to share the good news with you. The investments the Government of Canada has made in people, in our communities and in our economy are working. Canada now has the fastest-growing economy in the G7 and among the strongest job growth in a decade, giving us the ability to reinvest the benefits of that growth back into the people who contributed most to that success.
With the Fall Economic Statement, the Government will:
• Strengthen the Canada Child Benefit (CCB) by making annual cost of living increases starting in July 2018—two years ahead of schedule. For a single parent of two children making $35,000, a strengthened CCB will contribute $560 in the 2019–20 benefit year towards the cost of raising his or her children. That means more money, tax-free, for books, skating lessons or warm clothes for winter. The added confidence the CCB brings to families has been shown to have an immediate impact on economic growth.
• Put more money in the pockets of low-income workers—including families without children and the growing number of single Canadians—by further enhancing the Working Income Tax Benefit (WITB) by an additional $500 million per year, starting in 2019. This enhancement will be in addition to the increase of about $250 million annually that will come into effect in that year as part of the enhancement of the Canada Pension Plan. These two actions will boost the total amount the Government spends on the WITB by about 65 per cent in 2019, increasing benefits to current recipients and expanding the number of Canadians receiving support.
• Help small businesses invest, grow and create jobs by lowering the small business tax rate to 10 per cent, effective January 1, 2018, and to 9 per cent, effective January 1, 2019. This will provide a small business with up to $7,500 in federal corporate tax savings per year to reinvest in and grow their business.
• Make important changes to the tax system that will ensure Canada’s low corporate tax rates go towards supporting businesses, not to providing unfair tax advantages to the top 1 per cent wealthiest Canadians.
The Fall Economic Statement also provides an update on how investing in the economy and the middle class is delivering real results for Canadians:
• Canada is the fastest-growing economy in the G7—by a wide margin—growing at an average rate of 3.7 per cent over the last year, which is the fastest pace of growth since early 2006.
• Job creation is strong, with over 450,000 new jobs created in the last two years, and the unemployment rate at its lowest level since 2008. Youth unemployment is at an historic low.
• Growth is forecast to be 3.1 per cent in 2017—significantly above expectations at the beginning of the year. The fiscal outlook has improved by more than $6.5 billion annually on average from what was projected in Budget 2017 last March.
The Government’s plan works to strengthen the middle class and to ensure Canadians have the support, resources and confidence they need to succeed, create jobs and grow our economy. Our growing economy means a better bottom line. Canada’s fiscal position remains strong, and the Government will keep Canada’s debt-to-GDP (gross domestic product) ratio on a downward track—preserving Canada’s sound fiscal position so that we can continue to invest in the people who contribute to our success.
If you or your family require more information on how to apply to either the CCB or the WITB, please contact my team in the Constituency Office at (705) 745 – 2108 or by email at Maryam.Monsef@parl.gc.ca.