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Housing, corporation taxation: What the latest federal budget means for Calgary

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Ottawa has unveiled its latest federal budget, which includes just over $39 billion of net new spending over the next six years.

Among the new spending:

  • $1.5 billion to launch pharmacare;
  • $6.1 billion for a new disability benefit; and
  • $2.5 billion for a new carbon rebate that would benefit about 600,000 small businesses.

While there were rumours of a potential wealth tax to compensate for new spending, the government instead is increasing the tax rate on capital gains.

Feeling the impact will be 12.6 per cent of corporations.

"We're concerned about the level of taxation on corporations because it limits our ability to invest in innovation," said Ruhee Ismail-Teja, Calgary Chamber of Commerce vice-president of policy and external affairs.

"It limits our ability to invest in decarbonization, and it limits our ability to invest in the labour force and continue to hire."

Also new on Tuesday, a plan to unlock federal lands for homes.

Ottawa will lease property in Currie in Calgary to housing providers to build about 100 homes.

Going to Calgary through Ottawa's housing accelerator fund will be $228 million.

That money was previously pledged and is contingent on council passing rezoning rules, which will be discussed next week.

The mayor is happy with the housing money.

"This budget seems to be very focused on housing. And together with that, they seem to be interested in investing in the infrastructure that's needed for communities to grow," said Mayor Jyoti Gondek.

"Once again, there's no mention of having some sort of a better, more permanent solution to how the federal government funds municipalities."

The premier says it's a high-spending budget that doesn't help Albertans with affordability.

"It means higher debt, it means higher finance charges. They talk in the budget about generational fairness -- that's not fair, overspending today and saddling future generations with the burden of paying it back," Premier Danielle Smith said.

The province accuses Ottawa of pouring gasoline on the inflation crisis by overspending and over-regulating.

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