Achi news desk-
Ottawa has unveiled its latest federal budget, which includes just over $39 billion in net new spending over the next six years.
Among the new spending:
- $1.5 billion to launch pharmacare;
- $6.1 billion for a new disability benefit; a
- $2.5 billion for a new carbon rebate that would benefit about 600,000 small businesses.
Although there are rumors of a possible wealth tax to offset new spending, the government is instead increasing the tax rate on capital gains.
12.6 per cent of corporations will feel the impact.
“We are concerned about the level of taxation on corporations because it limits our ability to invest in innovation,” said Ruhee Ismail-Teja, vice-president of policy and external affairs for the Calgary Chamber of Commerce.
“It limits our ability to invest in decarbonisation, and it limits our ability to invest in the workforce and continue hiring.”
Also new on Tuesday, a plan to unlock federal lands for homes.
Ottawa will lease a property at Currie in Calgary to housing providers in order to build about 100 homes.
$228 million will go to Calgary through the Ottawa housing accelerator fund.
That money was previously promised and is contingent on the council passing rezoning rules, which will be discussed next week.
The mayor is happy with the housing money.
“This budget seems to be very focused on housing. And along with that, they seem to be interested in investing in the infrastructure that communities need to grow,” said Mayor Jyoti Gondek.
“Again, there’s no talk of having some sort of better, more permanent solution to how the federal government funds municipalities.”
The premier says it’s a high-spending budget that doesn’t help Albertans with affordability.
“It means higher debt, it means higher finance costs. They talk in the budget about generational fairness — that’s not fair, overspending today and saddling future generations with the burden of to pay back,” said Premier Danielle Smith.
The province accuses Ottawa of pouring gasoline on the inflation crisis by overspending and over-regulation.
