2015 Canadian Federal Budget Includes Families, Savers & Seniors

As a Blogger that loves to follow and decipher Canadian financial news, I received the following press release today from the newest addition to the Dominion Lending Centres Team, Dr. Sherry Cooper.  

It is safe to say that am I excited Dr. Cooper has joined us as she is one well educated, accurate and highly respected lady!  

Being that I could not have written this better myself, I decided to share.  Enjoy!

Vancouver, BC - Responding to today’s federal budget announcement, Dr. Sherry Cooper applauds the deficit reducing components of the 2015 Budget, stating that Ottawa’s plan offers a balance between fiscal restraint and targeted spending in key areas.

The budget forecasts a surplus of $1.4 billion this fiscal year, the first surplus in seven years. At the height of the global economic and financial crisis, the deficit was as high as $55.6 billion.

“This is a play-it-safe budget- no big new ideas, but great success in deficit reduction, tax cuts and smaller government,” says Dr. Cooper, Chief Economist for Dominion Lending Centres. “The measures to help families, savers and seniors are worthwhile and affordable.” Budget 2015 continues to shrink the role of government in the Canadian economy, continuing to cut taxes, a trend since the Conservatives took power in 2006. The Harper government is enshrining into law this government shrinkage with balanced budget legislation, allowing no more deficits unless the economy moves into recession, or in the case of extraordinary circumstances. Dr. Cooper stated that the government must be careful around balanced budget legislation. “Balanced budget legislation reduces the flexibility of government to conduct proactive counter-cyclical fiscal policy in a timely manner.” This is particularly relevant in a world where central banks have little room to counteract tight fiscal austerity. Hamstringing government policy in this environment seems untimely, at best. In addition, boomers will benefit from the doubling of the maximum contribution to Tax Free Savings Accounts (TFSAs) to $10,000. According to Dr. Cooper, this is a very good idea given that most boomers haven’t saved enough for retirement and younger people would benefit from the huge compounding effects of tax-free returns. Dr. Cooper added: The measures introduced to enhance personal savings through the TFSAs and RRIFs will help, but the current low interest rates force savers to take more risk to enhance returns.

About Dr. Sherry Cooper: Dr. Sherry Cooper took the position of Chief Economist, for Dominion Lending Centres in early 2015. Prior to joining DLC, Dr. Cooper was the Chief Economist with one of Canada’s largest financial institutions and is well versed in the mortgage sector. Dr. Cooper has an M.A. and Ph.D. in Economics from the University of Pittsburgh. She began her career at the United States Federal Reserve Board in Washington, D.C. where she worked very closely with then-Chairman, Paul Volcker, a relationship she maintains today. After five years at the Federal Reserve, she joined the Federal National Mortgage Association as Director of Financial Economics.