Provincial GDP has now increased 5.8 per cent over the past nine quarters, putting it one per cent above its pre-recession level. Growth in the third quarter was driven by increases in exports and Ontario’s manufacturing output. Modest gains in total investment and consumer spending also contributed.

As of December 2011, employment was 42,300 jobs above the pre-recession peak in September 2008. Ontario’s employment has increased by 299,100 net jobs from the recessionary low in May 2009, with full-time employment up by 268,000 net jobs.

The McGuinty government’s plan to make Ontario more competitive and create the right climate for job creation is working. The plan — including Ontario’s Tax Plan for Jobs and Growth — helped stabilize the province’s economy by lowering income taxes for families and businesses and introducing tax changes — including the HST — to help ensure Ontario’s future prosperity.

The publication reflects tax relief measures from the Next Phase of Canada’s Economic Action Plan, the Harper Government’s low-tax plan for jobs and growth.

“In an uncertain global economy, our Government will stay the course with our low-tax plan for jobs and growth—a plan that has worked and served Canadians well,” said the Honourable Jim Flaherty, Minister of Finance.

“Our economic leadership will continue as we stick to our plan to return to fiscal balance in the medium term, implement our deficit reduction action plan to find savings within government spending, and take targeted actions when necessary to support the recovery.”

For more information visit the Department of Finance website.

“We are really going to enjoy this new location,” said Karen Jerome, CMA, “it will facilitate our continued growth and I think clients and prospective clients will find it more convenient.  We’re all looking forward to the new office; the office is situated close to other businesses, fitness facilities, and restaurants.”

Our new address effective February 6 will be:

For more information please contact via  email

• You should have a will that includes your desires and tax considerations.
• You should consider steps to minimize probate fees (or Estate Administration Tax) on your death, if applicable.
• You should have enough insurance to meet the needs of your family on your death.
• If you have any assets in other countries or you are a U.S. citizen, you must consider the effects of foreign estate taxes.
• If you plan to leave assets to your children who may be or are married, you can plan around the provincial family laws that apply on marriage breakdown.

To discuss any of these tax aspects of estate planning, talk to your Padgett Business Services representative.

Western Europe, Japan, United States and Canada are in imminent danger of having to pay higher interest rates on their debt.  This will start a downward spiral of their economies, which will lead to a recession.  Some people think parts of these economies have been in a recession since 2008.  A recession is falling Gross Domestic Product (GDP) and higher unemployment.  Governments usually try to counteract this by increasing spending and lowering short term interest rates.  Unfortunately (or fortunately), the governments will not be able to increase spending because of the debt, and interest rates can’t really go much lower.  Canada and the rest of the developed countries are going down the same road as Greece, Ireland, and Portugal.  See our article on Debt in Selected Countries.

Recessions are a normal part of the business cycle, but if we go into a recession now because of sovereign debt, it may be long and nasty.  You can’t really tell when a recession begins or ends until probably five years after it’s over.  We entered a recession in 2008, but at this point we can’t really tell if the recession ended in 2010, or if it is a double-dip recession that we are still in.

What can you do?

The most important thing you can do is reduce your debt, especially debt on which the interest is not tax-deductible.  You can also lobby your governments (federal, provincial and local) to eliminate the deficit, reduce debt, and become better managers of your money.  You can do this by contacting your Member of Parliament (MP), provincial and local government representatives.  For a limited time, you can provide input to the Federal government through the online pre-budget consultations.  You could also sign petitions that are on the Canadian Taxpayers Federation website.

The Sustaining Canada’s Economic Recovery Act, Bill C-47, was introduced in the House of Commons on September 30, 2010, including the legislation for the rollover to RDSPs, and received Royal Assent (became law) on December 15, 2010.

Who is eligible?

An eligible individual:

What proceeds are eligible?

Eligible proceeds means any of

that is received by an eligible individual as a result of the death, after March 3, 2010, of a parent or grandparent of the eligible individual.

Specified RDSP payment

A specified RDSP payment:

Transitional eligible proceeds

Where the death of the RRSP or RRIF annuitant or RPP member occurred after 2007 and before 2011, transitional rules apply that recognize that individual estate plans may not have been amended to reflect the new rules.

• The Healthy Homes Renovation Tax Credit that will, if passed, help seniors stay in their homes longer and help create jobs.
• The  Accepting Schools Act that will, if passed, help make Ontario schools safer and more accepting places to learn by requiring all school boards to create policies for bullying prevention and intervention, progressive discipline, and equity and inclusive education.
• The Attracting Investment and Creating Jobs Act that will, if passed, create new opportunities with a proposed development fund for southwestern Ontario and make the Eastern Ontario Development Fund permanent.
• The Family Caregiver Leave Act that will, if passed, build on the existing Family Medical Leave to expand protected leave from work for caregivers so they can spend more time with family members who cannot care for themselves because of serious injury or illness.
• An amendment to the Residential Tenancies Act that will, if passed, set Ontario’s annual Rent Increase Guideline between one and 2.5 per cent beginning in 2013 to ensure affordable rent increases for tenants and fair return for landlords.

The Speech from the Throne was passed earlier this week providing a road map to creating a stronger, more competitive economy that protects and creates jobs for families. Working together, Ontarians are moving the province forward in a number of areas including:

Education — Our students are ranked among the best in the world. Results from the 2010 Pan-Canadian Assessment Program Report show our Grade 8 students are among the highest achievers in the country. Ontario students scored significantly higher than the Canadian average in all three subjects — math, science and reading — and were number one in reading.

Tax Reform — Ontario’s Tax Plan for Jobs and Growth is lowering income taxes for families and businesses. Tax changes are making the province an attractive place for businesses to invest. Since the Tax Plan for Jobs and Growth was introduced in July 2010, investment in machinery and equipment has increased by 22 per cent or $9 billion.

Infrastructure — The province’s long-term infrastructure plan, Building Together, will create and preserve 300,000 jobs, strengthen the economy and help meet the needs of local families.

According to The Globe and Mail, the IRS may  waive potentially massive penalties for Americans who agree to come clean and don’t owe any taxes.

To read more about this article visit the Globe and Mail.