1995 Federal Budget Targeting expenditure

"Finance Minister Paul Martin's second budget might be good for Canada's mining industry in the long run, but the budget raises a number of concerns for the industry in the near term. The budget papers suggest that the 25% resource allowance is not working as intended, and report that the Department of Finance will be reviewing this valuable allowance. The so-called ""large corporations tax"" rate will be increased. This annual tax, which is imposed on a corporation's capital even when the corporation is not in production, is particularly harmful to the mining sector.IntroductionThe Honourable Paul Martin, in his second federal budget, emphasized spending cuts and made only modest tax changes. However, two of these tax changes could have a serious impact on the Canadian mining industry: the proposed review of the 25% resource allowance; and, the increase in the large corporations tax rate.Personal Tax Measures Personal Tax Rates UnchangedThe government has been under political pressure not to increase personal tax rates. Mr. Martin's announcement that rates would not change will be popular."