Federal Budget 2009 - Who wrote this thing?

A "Socialist", A Lame Duck and a Separatist walk into a bar.. My thoughts toward the budget have been generally supportive, although I see a number of items that still reflect a classist approach to helping Canadians through this time of economic tumult and fear. For the most part, I think the methods of relief were well thought out. Reductions in taxability (bracket shifts) and increases to various Government benefits to low and mid-income Canadians showed a much more egalitarian approach, versus the previous measure of a meager increase to the personal basic amount and reduction of the GST. The Conservatives took the hard road into deficit spending, a marked departure from the tough talk of recent months, albeit with their hands forced a bit. The way money is being thrown around these days, especially by means of corporate welfare, the least the Feds could do is throw a dog a bone right?

The bones keep getting smaller though don't they?

The Home Buyers Program, introduced under the Mulroney Government in 1992, is one item that was selected for enhancement. When the program was implemented, the housing market was in the doldrums, unemployment was sky-high and the real-estate purchasing power of a dollar was much greater than today.

In 1992, according to Royal Lepage Canada's House Pricing Search, in the period January to March 1992, a two-storey house in Kitchener, Ontario would have an average price of $143,250. As of the July to September 2008 period, the same two-storey house would cost $252,000 - A difference of $108,750.

The Conservatives have increased the maximum amount of down-payment obtainable through the HBP to $25,000 in 2009 and future years, from 20,000 in 1992. It is a nice perk, but if the goal of government is to maintain the valuations in the housing market, shouldn't there be other mechanisms to support homeowners? Come on Jim; what is $5,000 going to do in this real-estate market? It's like dropping a popsicle into a bonfire essentially.

Enter the HRTC, or Home Renovation Tax Credit.

In an effort to increase both consumer spending and the construction trades hurt by the decline of new housing starts across the country, the Harper Government has enacted a refundable tax credit of up to $1,350 on work deemed suitable by the government. Exclusions of things like appliances, maintenance and repair of pre-existing items (furnaces etc.). This tax credit is granted subject to provision of receipts.. So for the under-the-table guys out there, it may mean a loss of business to those establishments who are providing remittances to the Gov't coffers. I guess if there is a tax credit for renting, there may as well be one for home-ownership.