This tax perk for wealthy CEOs will cost Canada $840M this year + MORE Mar 20th

It’s called the stock option deduction — a tax break for employees that critics claim largely benefits wealthy corporate executives. They say it’s time for Ottawa to claw back the benefit in this week’s budget.

THE CANADIAN PRESS/Fred Chartrand
The federal budget to be released this Wednesday by Finance Minister Bill Morneau is likely to introduce several changes for average Canadian families and investors alike. But Morneau himself is aiming to pull off a terrific feat—keeping Canada competitive in trade with world markets while at the same time telling his G20 colleagues this week that “taxing the rich is good economics.”
Of course, the good news is that Morneau is making middle-class Canadians a priority for 2017 and he seems ready to ensure that increases from economic growth won’t only flow to the rich. And while he says the budget will focus on skills training, innovation and promoting long-term growth, he’s also been reluctant to introduce major hikes on investment income. “I don’t foresee any changes to the personal tax rates themselves,” says Greg Bell, tax partner with KPMG in Toronto. “And I think the Liberals aren’t that opposed to running a deficit for a while…

The offer was originally made privately in February by Washington Co. but only revealed by both companies on Sunday

Federal Finance Minister Bill Morneau, left, with Prime Minister Justin Trudeau (Jake Wright/CP)
When the federal government dropped the budget last year, the Liberals put a big emphasis on helping Canada become more innovative. What that meant wasn’t exactly clear. On Wednesday, however, we might get an answer. The upcoming federal budget will likely include specifics, dollar amounts and details on how various initiatives under the government’s Innovation Agenda will roll out. Here’s what to watch for.

.cbR{box-sizing:border-box;display:block;width:100%;margin:1em 0;border:1px solid #bbb;padding:.5em}@media (min-width:480px){.cbR{width:250px;margin:0 0 1em 1em;float:right}}How the next federal budget might change the game on income inequality
1. Investment in high-growth companies
The 2016 budget earmarked $800 million over the next four years for “cluster funding.” While the government has been elusive in defining the word, “cluster” is taken to mean a group of companies in the same industry and location, such as fintech in Toronto or artificial intelligence in Montreal…

First-time homebuyers are having trouble breaking into Toronto’s housing market as people convert starter homes into forever homes, because they can’t afford to move up. It’s part of a ‘vicious circle’ of stagnation being closely monitored by the Toronto Real Estate Board.