Whether or not you invest in a Registered Retirement Savings Plan (RRSP), with the March 1 RRSP deadline around the corner, February tends to be the month Canadians talk about investments.
Investments don’t only help your money grow, they are also a good way to keep your money from losing value. Whether we realize it or not, money kept in a chequing account loses value over time due to inflation. Since prices slowly yet steadily go up, every dollar you save buys you a little less with each passing year.
In the 2011 federal election, the Conservative Party ran with the promise to drastically lower corporate tax to 14 per cent by 2013. Since coming to power in 2006, the Harper government has already brought the corporate rate from 22.5 per cent to 16.5 per cent, with a further reduction to 15 per cent scheduled for 2012.
The Tories say that a corporate tax cut will stimulate the economy by boosting spending. Those who oppose them say that tax cuts only help the rich because they can lead to a reduction in government revenues that often translates in reduced government spending on important social services relied on by those earning lower incomes.