The 2024 federal budget will provide 害羞草研究所済enerational fairness害羞草研究所� to younger Canadians by raising taxes on those who have already capitalized on Canada害羞草研究所檚 economic strengths, Finance Minister Chrystia Freeland said Tuesday as she tabled the document in the House of Commons.

The budget comes as the Liberals have watched their once-healthy voting base among young people evaporate in favour of the Conservatives, largely as younger Canadians feel like the economic deck is stacked against them.

Freeland denied Tuesday that her latest budget is mainly a political exercise 害羞草研究所� but nonetheless acknowledged that for anyone under 40 in Canada, it害羞草研究所檚 害羞草研究所渏ust harder to establish yourself害羞草研究所� than it was for the generations that came before.

A middle-class income and a good job is no longer enough to feel economically secure, she said.

害羞草研究所淚t really isn害羞草研究所檛 fair what they are struggling with right now,害羞草研究所� Freeland told a news conference earlier in the day prior to her budget speech in the House.

Freeland said the 2024 budget is designed to fix that problem, to 害羞草研究所渦nlock the door to the middle class害羞草研究所� for more Canadians. The budget document itself uses the word fairness 50 separate times.

There is $8.5 billion in new spending over the next five years to build millions of new homes and nearly $2.6 billion to enhance student aid and grant programs and open up new job opportunities.

害羞草研究所淲e are acting today to ensure fairness for every generation,害羞草研究所� Freeland said.

Overall, the budget害羞草研究所檚 projected spending will rise to $535 billion in 2024-25, compared with $497.5 billion in 2023-24. The deficit is projected at $39.8 billion, compared with $40 billion last year.

There is $11.5 billion in new spending this year and $53 billion over the next five years.

Freeland said she is maintaining the fiscal anchors she set for the government, keeping the deficit below $40 billion and to less than one per cent of GDP starting in 2026-27.

Ottawa is paying for some of that with better-than-expected economic growth, but also with targeted changes to the capital gains tax that are expected to raise more than $19 billion over the next five years.

Currently Canadians only pay taxes on 50 per cent of the money they make from capital gains, which refers mainly to profits made from selling an asset like a stock.

Freeland is adjusting that to 66 per cent for all capital gains made by corporations and trusts, and for those that exceed $250,000 for individuals.

She said the change should affect 0.13 per cent of Canadians who have an average annual income of $1.4 million. She said she knows the tax increase will generate blowback.

害羞草研究所淏ut before they complain too bitterly, I would like Canada害羞草研究所檚 one per cent 害羞草研究所� Canada害羞草研究所檚 0.1 per cent 害羞草研究所� to consider this: what kind of Canada do you want to live in,害羞草研究所� she asked in her speech.

The budget includes money for new national dental care and pharmacare programs, and also includes previously announced spending for a new national school lunch program.

害羞草研究所淒o you want to live in a country where you can tell the size of someone害羞草研究所檚 paycheque by their smile?害羞草研究所� Freeland asked.

害羞草研究所淒o you want to live in a country where kids go to school hungry? Do you want to live in a country where a teenage girl gets pregnant because she doesn害羞草研究所檛 have the money to buy birth control?害羞草研究所�

James Orlando, director of economics at TD, said while it害羞草研究所檚 true the budget keeps the government within its fiscal anchors on paper, the new tax hike is not helpful for productivity and said the new spending is 害羞草研究所済reater than we ever thought.害羞草研究所�

The budget, he said, is more about thinking ahead to the economy the government believes Canadians want in the future.

害羞草研究所淭his isn害羞草研究所檛 spending just to boost the economy today, but rather improve the trajectory of the Canadian economy going forward,害羞草研究所� he said.

害羞草研究所淭hey would say that they害羞草研究所檙e focused on the long-term benefit of their spending right now, not just necessarily having an immediate impact on the Canadian economy.害羞草研究所�

NDP Leader Jagmeet Singh, who has a supply-and-confidence deal with the Liberals to support them on key votes like the budget, nevertheless would not immediately promise to back the government害羞草研究所檚 latest spending plan.

The budget embraces multiple NDP ideas, including a protection fund for renters and pharmacare, but fails to go after 害羞草研究所渃orporate greed,害羞草研究所� Singh said.

Conservative Leader Pierre Poilievre was less equivocal.

害羞草研究所淐onservatives will vote against this wasteful, inflationary budget that is like a pyromaniac spraying gas on the inflationary fire that he lit,害羞草研究所� Poilievre said in the House.

害羞草研究所淚t is getting too hot and too expensive for Canadians, and that害羞草研究所檚 why we need a carbon tax election to replace him with a common-sense Conservative government.害羞草研究所�

READ ALSO:

READ ALSO:

READ ALSO:

Some key budget highlights:

Housing

In hopes of building nearly 3.9 million new homes across Canada by 2031, the government plans to:

害羞草研究所� increase the capital cost allowance rate for apartments from four to 10 per cent, allowing builders larger tax writeoffs;

害羞草研究所� extend the mortgage amortization period to 30 years for first-time homebuyers purchasing new builds;

害羞草研究所� make more public lands available for home construction, including Canada Post and National Defence properties, and lease land to developers;

害羞草研究所� spend $250 million over two years to address the 害羞草研究所渦rgent issue害羞草研究所� of encampments and a shortage of shelter space for homeless people.

Taxes

High-worth individuals, corporations and trusts will pay more in capital gains taxes. The inclusion rate increases to 66 per cent, up from 50 per cent, on capital gains above $250,000 for individuals and on all capital gains for corporations and trusts. The change is expected to yield an additional $19.4 billion over four years.

Excise taxes on tobacco and vaping products are going up: $4 on a carton of cigarettes and by 12 per cent on vape supplies 害羞草研究所� for a total of nearly $1.7 billion in revenue over five years.

Students

The government will spend $48 million over four years and $15.8 million thereafter to forgive the loans of early childhood educators.

Another $253.8 million over four years, plus $84.3 million a year thereafter, will go towards loan forgiveness for a host of health and education workers, including hygienists, pharmacists, teachers and social workers.

Public safety and justice

The government plans to amend the Criminal Code to create new criminal offences for auto theft involving violence or with links to organized crime.

They also plan to take steps to criminalize the possession or distribution of electronic devices used to steal cars and regulate such devices.

It will cost $52 million over five years to enact and enforce the new Online Harms Act, which requires large online platforms to act responsibly, and creates a new commission and ombudsperson for digital safety.

There害羞草研究所檚 new money to combat hate, including:

害羞草研究所� $273.6 million over six years for community outreach, law enforcement, counter-radicalization and victim support;

害羞草研究所� $32 million over six years and $11 million a year thereafter for the Security Infrastructure Program, which funds physical security for community and religious hubs;

害羞草研究所� $7.3 million over six years for each of the Special Envoy on Preserving Holocaust Remembrance and Combatting Antisemitism and the Special Representative on Combatting Islamophobia.

Environmental policies

More than $900 million over six years for greener homes and energy efficiency programs.

Ottawa also plans a national flood insurance program by 2025, providing $15 million to the Canada Mortgage and Housing Corp.

And it is creating several new parks and wildlife preserves, including in British Columbia, Prince Edward Island and Windsor, Ont.

For businesses:

害羞草研究所� A 10 per cent tax credit for the cost of buildings used for key parts of the electric-vehicle supply chain over the next 10 years;

害羞草研究所� A 15 per cent tax credit over the same period for eligible investments in new equipment or refurbishments for clean electricity;

害羞草研究所� A new tax credit for about 600,000 small and medium-sized businesses worth $2.5 billion that disburses fuel charge proceeds dating back to 2019.

Health care

The first programs to cover contraceptives and diabetes medication and supplies, part of the government害羞草研究所檚 new pharmacare plan, are expected to cost $1.5 billion over five years.

The budget also includes $150 million over three years for an Emergency Treatment Fund to help municipalities and Indigenous communities deal with the opioid crisis.

It also provides $6.1 billion over six years and $1.4 billion a year thereafter for the Canada Disability Benefit and related costs.

On mental health, the government will:

害羞草研究所� set up a $500-million fund to help community health organizations give more mental-health care to young people;

害羞草研究所� legislate a 害羞草研究所渞ight to disconnect害羞草研究所� for federally regulated workplaces;

害羞草研究所� put $630 million towards access to mental-health services for Indigenous Peoples.

Indigenous Peoples

The budget includes up to $5 billion in 害羞草研究所渟ector-agnostic害羞草研究所� loan guarantees for resource projects undertaken by Indigenous communities.

It害羞草研究所檚 spending close to $1.2 billion on primary and secondary education and infrastructure in First Nations reserves, and $918 million for housing and infrastructure.

The government is also developing an alert system for missing Indigenous women, girls and gender-diverse people.

Foreign policy and defence

The Liberal government plans to boost military spending to 1.76 per cent of GDP by 2030, including $8.1 billion over the next five years and $73 billion by 2044.

The budget earmarks $1.6 billion over five years for lethal and non-lethal military aid for Ukraine.

It includes $350 million over two years to respond to large-scale humanitarian crises and $159 million over five years to support the 害羞草研究所渢ransformation害羞草研究所� of Global Affairs Canada.

Foreign credentials

An additional $50 million over two years will bolster the foreign credential recognition program to help workers in construction and health care.

Ottawa also plan to spend $77.1 million on integrating internationally educated health-care professionals with new training positions.

Asylum claimants

The budget includes $1.1 billion over three years to extend a housing assistance program for asylum claimants, plus $274 million over five years for immigration and refugee legal aid.

It also includes $743.5 million over five years to strengthen the asylum system and streamline the claims and removal processes .

Artificial intelligence

Ottawa is setting aside $2.4 billion in the upcoming budget to build capacity in artificial intelligence.

The bulk of the money 害羞草研究所� $2 billion 害羞草研究所� is going towards improving access to computing capabilities and technical infrastructure.

Another $50 million over five years will support workers who could be affected by artificial intelligence, including in the creative industries.

The government also plans to fund a new AI Safety Institute of Canada and Transport Canada technology to use AI to screen Canada-bound air cargo.

School food program

Ottawa is spending $1 billion over five years on a national school food program that aims to provide meals for 400,000 additional children.

Loans for child-care centres

The Liberal government plans to provide more than $1 billion in low-cost loans, grants and student loan forgiveness to expand child care across Canada.

Public service

The federal workforce will shrink by about 5,000 full-time employees because of 害羞草研究所渘atural attrition害羞草研究所� over the next four years, part of an effort to cut costs.

READ ALSO:

READ ALSO:

READ ALSO: