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Home My WebLink AboutThe Huron Expositor, 1989-05-10, Page 2ArmHuron .„ u4'1CPOSitOr SINCE 1860, SERVING THE COMMUNiTY'FIRST Incorporating The;Brussels •Post Published In Seaforth, Ontario Every Wednesday The Expositor Is brought to roe each week by the efforts of: Pat Armes, Neil Corbett, Terri -Lynn Dale, Dianne McGrath and Bob McMillan. EB .BYRSIS 1, General iManager HEATHER `Mc11:WRA11TH,'Edltor Member Canadian Community Newspaper Assoc. Ontario Community Newspaper Association Ontario Press Council Commonwealth Press Union International Press institute Subscription Rates: Canada .20.00 a year, in advance Senior Citizens • '17.00 a year in advance Outside Canada '60.00 a year, In advance Single Copies • .50 cents each Second class mall registration Number 0696 Wednesday, Mel TI®, 1985 Editorial.and-Business Offices - 10 Main Street, Seaforth Telephone (519) 527-0240 Mailing Address - P.O. Box 69, Seaforth, Ontario, NOK 1WO Budget for the bbudge Whether it was a carefully contrived event, or whether it was an attempt to undermine the credibility of Finance Minister Michael Wilson, the leakage of the federal budget to the media prior to its scheduled announcement, has served at least one useful purpose - to take public focus awayfrom the implica- tions of the federal budget. For weeks the Canadian public was warned that the 1989 budget would be draconian. But surprisingly its final release seems to have brought about little public outcry. Whether that is because the budget itself has been usurped by enquiries about its 'leak', or because that budget was nothing in comparison to what Canadians were expecting, is unknown. But in retrospect, it is surprising to note the budget was mild - at least in terms of personal taxation. As usual there were tax increases on such products "as gasoline, tobacco and alcohol. The business community will pay higher taxes, and employers and employees Will have to shoulder the full cost of the Unemployment In- surance program, saving Ottawa in the process, close to $2 billion a,year. And down the road, Ottawa will introduce a general tax on most goods and services. • But despite some pessimistic predictions, the government didn't tamper with the $100,000 lifetime capital gains tax exemption., In fact, it appears the only tax increase which will affect many Canadians is the hike in the federal surtax rate. Presently at three per cent, that surtax wit rise to four per cent on July 1 for the balance of 1989. After that the rate will rise to five per cent. But in dollar terms, the surtax doesn't start to amount to much until you are in the middle to upper middle-income bracket. The budget provides for a special surtax which will apply to high income earners. This surtax will be an additional 1.5 per cent of basic Federal Tax in excess of $15,000. This rate will rise to three per cent in 1990. The budget also strikes at high-income Canadians in the area of `social transfer' payments. To paraphrase one financial planner, the new budget advocates a system of sorts, which ensures that payments of Family Allowance and Old Age Security monies are not paid out to people who don't need them. It proposes that begin- ning in 1989, high-income Canadians who r. give the Baby Bonus and old age pension, be required to repay a part or all of such payments, through the tax system. The repayment formula will be phased in over a three-year period. For 1.889, the repayment rate will be five per cent of net income in excess of $50,000. The rate will rise to 10 per cent of net income in excess of $50,000 in 1990, with a further increase to 15 per cent in 1991. Beginning in 1990, -the .$50,000 threshold will be indexed for inflation in excess of three per cent each year. Another interesting feature of the new budget is that the federal Sales Tax Credit will be increased from $70 to $100 per adult in 1989 and $140 in 1990. The credit for each dependent child under age 19 will be increased from $35 to $50 in 1989 and to $70 in 1990. But in 1990 the income threshold at which the credit starts to be'reduced will be increased from $16,000 to $18,000. The credit will continue to be reduced by five per cent of net family income above the threshold. Yes, in terms of personal taxation Canadians appear to have gotten off light- ly. But, what does the future hold in terms of backlashes from those entities that appear to have been harder- hit by this budget Old Metersimake good book As almost everyone does during this time of year, 1: have, 'whenever time allows it, been doing •a bit of spring cleaning. Although Ihaven't really progressed all that far tmthis Endeavor, T havemanaged to sort 'through a'fewodds and ends --and yes, even throw a few •of -them into the garbage. And: believe me, I found That a more die fieulttaskto complete, than doingthe actual cleaning itself. I mean, some of those odds and ends had been with me fora long time. Some I had collected from my childhood, others from my elementary, secondaryend then post secondary -education years. Some had travelled with me from Ontario to Alberta in 1981, then made the return trip lo Ontario three years later. Others I had gathered during extended stays in the United States, Europe and tropical isles. And of them, I thought, held some key to my p t life - a key I 'wasn't, and to some degre still am not, willing to totally give 'Farmer feels opportunity missed To the editor: Last Friday I felt like I bad missed out on a very important opportunity. I'll tell you why! The night before, Thursday, April 27, I went to a meeting nt Walton Hall. The hall was filled withlandowners from Grey, Mor- ris, East Wawanosh, :