1977 Federal Budget Taxable Dividends

CIM Bulletin, Vol. 70, No. 785, 1977

R. D. Brown, F.C.A., Price Waterhouse & Co., Toronto, Ontario

In his Budget Speech on March 31, 1977, the Honourable Donald S. Macdonald expressed concern about the financing of investments through new equity issues. He mentioned the need to render more attractive participation in the equity market by investors in all income brackets. One of the measures introduced in the budget to accomplish this goal is the proposal to increase the dividend gross-up and tax credit in respect of most dividends received by an individual from Canadian companies. The following comments and tables serve to illustrate the impact of this particular proposal.