EvanL
03-24-2004, 01:02 AM
By JEFF SALLOT
Globe and Mail Update
POSTED AT 4:35 PM EST Tuesday, Mar. 23, 2004
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Ottawa — The federal budget yesterday increased defence spending by relatively modest $300-million to cover the incremental costs of operations in Afghanistan and Haiti. This will bring total defence spending to about $13.6-billion this year.
Commanders say the Canadian Forces are cash-strapped and in need of billions more for new equipment, but the Liberal government is postponing decisions on any major increases in military spending until a foreign and defence policy review next year.
Meanwhile, the foreign aid budget, however, increases by 8 per cent, or $248-million a year starting April 1.
UN Secretary-General Kofi Annan recently called on Canada to do more to help meet the world body's goals for reducing hunger, disease, illiteracy and poverty by 2015.
Although Finance Minister Ralph Goodale said Canada will honour its commitments to the world's poorest people, yesterday's announcement will leave Canada about $100-million short of what's needed to get back on track towards meeting the UN goals, according to the Canadian Council for International Co-operation.
The Throne Speech earlier this year promised to create a Canada Corps, an overseas development assistance body modelled on the U.S. Peace Corps. It will get about $15-million over the next two years.
Mr. Goodale earmarked $605-million over the next five years for new spending on national security projects, such as border protection, emergency response to terrorist threats and stepped up intelligence gathering.
This is in addition to the $420-million Ottawa allocated for new security measures in the aftermath of the Sept.11, 2001 terrorist attacks on New York and Washington.
The government is reducing the air travel security tax imposed in the wake of the 9/11 attacks. The tax to and from the U.S. drops to $10 from $12. The domestic round-trip tax of $14 drops to $12 and the foreign travel round-trip charge of $24 goes down to $20.
And soldiers putting their lives on the line overseas are getting a tax break.
The tax breaks for soldiers will cost the treasury about $30-million a year, putting that money for the most part in the pockets of soldiers in the lower ranks.
“Our nation's heroes deserve our nation's gratitude,” Mr. Goodale said.
The Finance Department says a typical corporal earning about $48,000 a year will get a tax break of $4,600 if the soldier spends six months on a tour of duty in war-ravaged Afghanistan.
All soldiers at the rank of chief warrant officer or lower will be exempt from all federal income tax for the time they spend in danger zones. The annual salary of a chief warrant officer is about $72,000.
Officer ranks from lieutenant to the highest ranking general will pay no income tax on the first $72,000 they earn - pro rated by the number of days in danger zones. But they will be fully taxed for income above the $72,000 level.
The highest-ranking officer currently serving in a danger zone is a lieutenant general, whose salary is about $150,000.
All soldiers serving in hot spots will continue to draw danger pay, about $1,700 a month for all ranks. This bonus remains tax free. With the deployment this month of 425 troops to Haiti, there are about 2,500 soldiers currently serving in danger zones.
The tax break will also go to RCMP and other Canadian police officers on UN duty in danger zones. The government expects to send French-speaking police to Haiti later this year to help rebuild the gendarmerie in that Caribbean nation when the soldiers leave.
Globe and Mail Update
POSTED AT 4:35 PM EST Tuesday, Mar. 23, 2004
Advertisement
Ottawa — The federal budget yesterday increased defence spending by relatively modest $300-million to cover the incremental costs of operations in Afghanistan and Haiti. This will bring total defence spending to about $13.6-billion this year.
Commanders say the Canadian Forces are cash-strapped and in need of billions more for new equipment, but the Liberal government is postponing decisions on any major increases in military spending until a foreign and defence policy review next year.
Meanwhile, the foreign aid budget, however, increases by 8 per cent, or $248-million a year starting April 1.
UN Secretary-General Kofi Annan recently called on Canada to do more to help meet the world body's goals for reducing hunger, disease, illiteracy and poverty by 2015.
Although Finance Minister Ralph Goodale said Canada will honour its commitments to the world's poorest people, yesterday's announcement will leave Canada about $100-million short of what's needed to get back on track towards meeting the UN goals, according to the Canadian Council for International Co-operation.
The Throne Speech earlier this year promised to create a Canada Corps, an overseas development assistance body modelled on the U.S. Peace Corps. It will get about $15-million over the next two years.
Mr. Goodale earmarked $605-million over the next five years for new spending on national security projects, such as border protection, emergency response to terrorist threats and stepped up intelligence gathering.
This is in addition to the $420-million Ottawa allocated for new security measures in the aftermath of the Sept.11, 2001 terrorist attacks on New York and Washington.
The government is reducing the air travel security tax imposed in the wake of the 9/11 attacks. The tax to and from the U.S. drops to $10 from $12. The domestic round-trip tax of $14 drops to $12 and the foreign travel round-trip charge of $24 goes down to $20.
And soldiers putting their lives on the line overseas are getting a tax break.
The tax breaks for soldiers will cost the treasury about $30-million a year, putting that money for the most part in the pockets of soldiers in the lower ranks.
“Our nation's heroes deserve our nation's gratitude,” Mr. Goodale said.
The Finance Department says a typical corporal earning about $48,000 a year will get a tax break of $4,600 if the soldier spends six months on a tour of duty in war-ravaged Afghanistan.
All soldiers at the rank of chief warrant officer or lower will be exempt from all federal income tax for the time they spend in danger zones. The annual salary of a chief warrant officer is about $72,000.
Officer ranks from lieutenant to the highest ranking general will pay no income tax on the first $72,000 they earn - pro rated by the number of days in danger zones. But they will be fully taxed for income above the $72,000 level.
The highest-ranking officer currently serving in a danger zone is a lieutenant general, whose salary is about $150,000.
All soldiers serving in hot spots will continue to draw danger pay, about $1,700 a month for all ranks. This bonus remains tax free. With the deployment this month of 425 troops to Haiti, there are about 2,500 soldiers currently serving in danger zones.
The tax break will also go to RCMP and other Canadian police officers on UN duty in danger zones. The government expects to send French-speaking police to Haiti later this year to help rebuild the gendarmerie in that Caribbean nation when the soldiers leave.