What has been done

Reducing the Tax Burden for Canadians

• Tax relief provided by the Working Income Tax Benefit (WITB), first introduced in Budget 2007, will be effectively doubled to further reduce the welfare wall and help ensure that more low income Canadians are financially better off as a result of getting a job. The enhanced WITB will provide up to $925 per year to single individuals and up to $1,680 per year to couples and single parents. Legislation implementing the enhanced WITB was adopted by the House of Commons on November 17, 2009 and is proceeding through the Senate.
• Tax assistance of up to $1,350 per family in support of home renovations and improvements is helping stimulate the economy and encouraging investment by Canadians in their homes. The Canada Revenue Agency has received about 3.5 million enquiries about the Home Renovation Tax Credit through its website and by telephone.
• Canadians have been seeing the benefits of income tax reductions announced in Canada’s Economic Action Plan on their pay stubs since April 2009.
• Tax relief for low- and middle-income seniors has been put in place, providing up to an additional $150 in annual tax savings, to help our seniors thrive in retirement.
• Increased child benefits started to flow in July, providing up to $436 per year for a family with two children, making raising children more affordable. 
• To help small businesses retain more of their earnings for reinvestment, expansion and job creation, Canada’s Economic Action Plan increased the amount of small business income eligible for the reduced federal income tax rate of 11 per cent from $400,000 to $500,000. This enhanced support took effect on January 1, 2009 and can save small businesses up to $8,000 each in 2009 taxes.
• Canada’s manufacturers and processors are benefiting from an extension of the temporary 50-per-cent straight-line accelerated capital cost allowance (CCA) rate on machinery and equipment purchases, and the permanent elimination of tariffs on a wide range of machinery and equipment effective January 28, 2009.
• These measures are helping businesses in the manufacturing and processing industries make the necessary equipment purchases and position themselves for long-term success.
• To help businesses adopt new technology at a faster pace, a two-year 100-per-cent CCA rate for investments in computers has been in effect since January 28, 2009.
• Mineral exploration activity across Canada is being supported by the one-year extension of the temporary 15-per-cent Mineral Exploration Tax Credit, which took effect April 1, 2009. 
• Tax reductions are an essential part of Canada’s Economic Action Plan. They support Canadians and Canadian businesses in the short term by providing stimulus, putting money in the hands of Canadians to spend as they see fit, thus encouraging job creation and helping create a long-term advantage for sustained economic growth.
• Canada’s Economic Action Plan includes measures that will reduce the tax burden for Canadian families and businesses by more than $20 billion over 2008–09 and the following five fiscal years. This builds on early action taken by the Government in the October 2007 Economic Statement to offset the economic downturn with substantial and permanent tax reductions.
• In total, actions taken by this Government since 2006 will reduce taxes by $220 billion over 2008–09 and the following five fiscal years, allowing Canadian individuals, families and businesses to keep more of their money.

Helping the Unemployed

The Government has taken extraordinary and unprecedented action to help Canadian workers facing layoffs or job losses weather the economic conditions. Through Canada’s Economic Action Plan, the Government has provided more Employment Insurance (EI) benefits, greater training opportunities and better supports for employees and employers. This year, an additional $5.8 billion will be paid out in EI benefits, while the provinces and territories will receive $750 million to implement additional training programs.

The Government is also leaving more money in the hands of Canadians by freezing EI premium rates for 2010 at $1.73, the same rate as 2009 and the lowest rate since 1982.

The Economic Action Plan is providing additional benefits now when Canadians need them the most. Since September, close to 100,000 more individuals are receiving up to an extra five weeks of EI benefits. This means that so far this year, more than 395,000 people are receiving up to an additional $2,235 in benefits, at a cost of $574 million. In addition:

• Enhanced EI work-sharing agreements have supported more than 225,000 individuals since the initiative was launched in February, of which approximately 167,000 are currently participating in work-sharing agreements.
• Long-tenured workers are receiving extended EI benefits to enable access to longer-term training through the Career Transition Assistance initiative. The Government is implementing recent legislation to temporarily extend EI benefits for long-tenured workers by up to 20 weeks.
• Under the Wage Earner Protection Program, Canadians have received more than $24 million in payments including severance payments and termination pay.

Enhanced training and work experience measures in 2009–10 are in place to support Canadian workers and help them transition into new jobs and opportunities:

• More than 90,000 Canadians are benefiting from funds currently flowing to provinces and territories to support training. 
• An additional $10 million in 2009–10 for the Canada Summer Jobs Program allowed employers to hire approximately 3,500 students this summer.
• Investments are flowing for 58 projects through the Targeted Initiative for Older Workers, supporting over 2,000 older workers.
• Since July, over 10,000 Apprenticeship Completion Grants, worth $2,000 per individual, have been awarded. 
• To support skills development and create employment opportunities, Aboriginal Canadians will participate in approximately 90 projects across the country, of which over 55 have begun since September.
• In addition to actions taken under the Economic Action Plan, the Government has introduced the Fairness for the Self-Employed Act, which would extend EI special benefits, including maternity, parental, sickness and compassionate care benefits, to the self-employed.

Building Infrastructure to Create Jobs

• Since the release of Canada’s Economic Action Plan, the Government has committed more than $9 billion in federal funding towards over 6,700 provincial, territorial and municipal infrastructure projects worth over $25.8 billion.
  
  This includes commitments of:  
  
  • Over $3.6 billion through the $4-billion Infrastructure Stimulus Fund. To date, approximately 3,200 projects across Canada have been announced under the Fund.
  • More than $2.8 billion from the Major Infrastructure Component of the Building Canada Fund to 96 priority projects, worth approximately $9.6 billion.
  • $170 million in 2009–10, under the Recreational Infrastructure Canada program, to over 1,500 projects.


• 46 projects have begun to improve schools, water and wastewater systems, health facilities and policing infrastructure for First Nations.
• VIA Rail has signed contracts for over $330 million of stimulus work. Construction, including work on track, signalling and bridges, started in early fall 2009.
• The main contract for the repairs planned for 2009–10 for the 10-year repair program to the Champlain Bridge in Montréal was awarded in March and work started in April. Three additional contracts have been awarded since then. Work is underway on the Blue Water Bridge in Sarnia and the Peace Bridge in Fort Erie.
• The Government is investing $200 million over two years for over 260 projects to improve small craft harbours throughout Canada.
• 1,150 repairs and renovation projects for federal buildings have been identified and 119 of these have been completed. 
• Work to twin eight kilometres of the Trans-Canada Highway in Banff National Park between Lake Louise and the British Columbia border began last April, creating an estimated 1,600 jobs.

Stimulating Housing Construction

• The tax relief available through the temporary Home Renovation Tax Credit of up to $1,350 is providing an immediate incentive for homeowners to invest in their homes and is supporting jobs in the housing industry.
• Tax relief of up to $750 through the First-Time Home Buyers’ Tax Credit and higher Home Buyers’ Plan withdrawal limits will encourage home ownership and further support the housing industry.
• More than 945 projects have begun as a result of agreements with all provinces and territories to deliver $650 million in federal investment in 2009–10 for the construction, renovation and retrofits of social housing across Canada.
• $1 billion in low-cost loans is available for municipalities in 209–10 to undertake housing-related infrastructure projects. 64 loans have already been approved.
• The federally administered renovation and retrofit initiative is also investing $75 million in 2009–10 to improve existing social housing units. 420 projects have already begun.
• Projects have begun to build and renovate on-reserve social housing in almost 300 First Nations communities. In addition, federal investments are creating jobs and supporting communities in the North, with 106 projects already started.
• Due to unprecedented demand under the ecoENERGY Retrofit – Homes program, the Government is proposing to allocate $205 million under the Clean Energy Fund to finance up to 120,000 additional retrofits for Canadian homeowners.

Creating the Economy of Tomorrow

• 100 per cent of the $2-billion Knowledge Infrastructure Program, which supports research and advanced education by funding deferred maintenance, repair and construction projects at colleges and universities across Canada, has been committed. Nine projects have been completed and work has begun on 372.
• All 18 Arctic Research Infrastructure Fund projects for 2009–10 have begun (10 are at the planning stage and 8 have initiated construction). The feasibility study for the High Arctic Research Station has also begun.
• Over 90 per cent of the 2009–10 funding set aside to address deferred maintenance for about 70 projects at federal laboratories and scientific facilities across Canada has been committed. Initiatives that are well advanced include projects at Agriculture and Agri-Food Canada, Health Canada, the Public Health Agency of Canada, the Royal Canadian Mounted Police and Environment Canada.

Supporting Industries and Communities

• Solid progress continues to be made on Community Adjustment Fund projects across the country. About $460 million in funding has been committed in 2009–10. To date, 728 individual projects have begun.
• The Federal Economic Development Agency for Southern Ontario has already committed over 60 per cent of the $206 million in funding allocated for 2009–10.
• A $1-billion Pulp and Paper Green Transformation Program was created to improve energy efficiency and environmental performance in the forestry sector. This is in addition to the $170 million over two years provided for market diversification and innovation in the forestry sector as part of the Economic Action Plan.
• To date, the Government has provided about $44 million to 56 major Canadian events and festivals across Canada. 
• The shipbuilding initiative is progressing well. Three vessel life extensions are underway at Canadian shipyards and contracts for repair and refit work on 25 vessels have been issued. Five small boats have been built and delivered to the Canadian Coast Guard base in Victoria, British Columbia.
• Progress has been achieved on the agricultural Economic Action Plan measures as the Government makes funding available to the sector. In addition, the federal-provincial cost-shared Business Risk Management programs continue to provide significant financial support to the agricultural sector during the economic downturn, with $2 billion flowing to the benefit of producers to date for the 2008 and 2009 program years.

Improving Access to Financing and Strengthening Canada’s Financial System

• The Government’s unprecedented actions to improve access to financing have significantly improved liquidity and credit conditions in Canada, assisting households and businesses across the country with their financing needs. 
• Financial institutions now have ample funding to lend to creditworthy borrowers, and the Government’s financial Crown corporations are continuing to play a strong role in providing support.
• To ensure access to financing as Canada’s economy strengthens, the Government is continuing to provide broad-based financing support to lenders, as well as more direct support for particularly hard-hit areas of the financing market.
• Financing support of $135 billion has been provided, all of it on a commercial basis to protect the taxpayer.
• Average effective interest rates paid by households and businesses are significantly below their level last year.

Source: "A Fourth Report to Canadians"