Coherent Identifier About this item: 20.500.12592/n3brwd

A bigger and better child benefit

2008

Premium

Summary

However, like the children’s tax exemption, the non-refundable child tax credit excluded poor families below the taxpaying threshold, and was worth less than the maximum in the case of families whose income tax liability was less than the value of the non-refundable credit. [...] For a family with one child under 6 and earned income of $15,000, federal child benefits increased from 15.0 percent of earnings when the Child Tax Benefit was launched in 1993 to 15.8 percent when the Canada Child Tax Benefit began in 1998, 22.1 percent in 2005 and reached 29.8 percent in 2007 with the addition of the Universal Child Care Benefit to federal child benefits.6. [...] The Universal Child Care Benefit is taxable in the hands of the lower-income parent in the case of couples, and the sole parent in the case of single-parent families. [...] The federal government’s spending on child benefits, which had been rising steadily in recent years with the series of increases to the Canada Child Tax Benefit, grew again with the addition of the Universal Child Care Benefit and the non-refundable child tax credit. [...] The erratic ups and downs in the line representing the increase in child benefits under the new system result largely from the conflicting designs of the Canada Child Tax Benefit (which is based on family income and excludes families with high incomes) and the Universal Child Tax Benefit and non- refundable child tax credit (which are based on individual income and are payable all the way up the i

Authors

Tags

government economics child care economy poverty income tax canada economists employment ethics social assistance tax working poor low income marginal tax rates poor tax credit government finances income maintenance programs child benefit progressive child tax credit child tax credits

Topics