“When Everybody Skates Everything Becomes Easier” -Henri (Pocket Rocket) Richard

BC Government Brings Down Budget

On February 21 the BC Government brought down its 2012-2013 budget.
Here are the highlights:

Projected economic growth – 1.8 per cent in 2012-2013; 2.2 per cent in 2013-2014; 2.5 per cent in 2014-2015

Projected deficit – $968-million for 2012-2013; deficit this year, $2.5-billion.
Balanced budget – Budget balanced next year. B.C. projects a $154-million surplus for 2013-2014 and a $250-million surplus for 2014-2015.
MSP – A four per cent increase to medical service premiums in 2013
First-time home buyer tax credit – There will be an income tax credit worth $10,000 for first-time home buyers purchasing newly built homes. The bonus begins phasing out for individuals and families earning a net income of $150,000 and is eliminated completely for individuals earning $200,000 in net income and families earning $250,000 net.
Seniors renovation tax credit – Seniors will qualify for a tax credit worth up to $1,000 a year to renovate their homes to help them to stay living there. It is available to seniors or family members sharing their home. The credit is available regardless of income.
Children’s Fitness Credit and Arts Credit – The Children’s Fitness Credit is a non-refundable tax credit of 5.06% of eligible expenditures up to $500 for each child providing a net benefit of up to $25 per child. The Children’s Art Credit is a non-refundable tax credit of 5.06% of eligible expenditures up to $500 for each child providing a benefit of up to $25 per child.
Rebate Boosted for Newly Built Homes – Effective April 1, 2012, the current HST rebate threshold for home purchases increases to $850,000. More than 90 per cent of newly built homes are below that price. Purchasers will now be eligible for a provincial HST rebate of up to $42,500. And, for the first time, purchasers of new secondary vacation or recreational properties built outside the GVRD and Capital Regional District priced up to $850,000 will be eligible to claim a provincial grant of up to $42,500, effective April 1, 2012.
Full Details at the BC Government Website here –

http://www.bcbudget.gov.bc.ca/2012/default.htm
Market Wrap Up
The TSX closed at 12726, up 268 points or 2.15% over the past week. YTD the TSX is up 6.45%.

The DOW closed at 12983, up 33 points or 0.25% over the past week.YTD the DOW is up 6.26%.

The S&P closed at 1366, up 5 points or 0.37% over the past week.YTD the S&P is up 8.59%.

The Nasdaq closed at 2964, up 12 points or 0.41% over the past week.YTD the Nasdaq is up 13.78%.

Gold closed at 1775, up 51.00 points or 2.96% over the past week.YTD gold is up 13.42%.

Oil closed at 109.68, up 6.11 points or 5.90% over the past week.YTD oil is up 10.90%.

The CAD/USD closed at 1.0002, down -0.0036 points or -0.36% over the past week.YTD the CAD/USD is up 2.08%.

BLOG LINKS

Housing Market: Correction or Soft Landing

2009 Was the Worst Ever RRSP Season  

 

Sources: BC Government; Bloomberg