liberal party’s fairness for the middle class · and less and less financial security. we need...
TRANSCRIPT
A Liberal government will create the Canada Child Benefit (CCB): one fair, tax-free monthly child benefit that puts more money back in the pockets of the middle class and those working hard to join it.
This is a plan for fairness. Stephen Harper’s unfair system gives money to those who need it least. We will give middle class Canadian families more money to help with the high costs of raising kids. We will also provide more help to lower income Canadians.
THE PLANWe will cancel income splitting and other tax breaks and benefits for the wealthy;
We will build on the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS); and
We will invest more, providing help to the middle class and those working hard to join it.
WHAT IT MEANSAll families, with children, that have annual incomes below $150,000 will receive more in monthly child benefit payments than under Mr. Harper’s system. That is 9 out of every 10 Canadian families. We will cancel tax breaks and benefits for the wealthy to give more Canadi-an families money to raise their kids.
With the Liberal plan, a typical two-parent family, with two kids, earning $90,000 per year will get $490 tax-free every month. With Mr. Harper, the same family only receives around $275 after-tax. Over the course of a year, the Canada Child Benefit will provide $5,875 to this middle class family. That is $2,500 more help, tax-free.
With the Liberal plan, a typical one-parent family, with 1 child, earning $30,000 per year will get $533 tax-free every month. With Mr. Harper, the same family only receives around $440 after-tax. Over the course of a year, the Canada Child Benefit will provide $6,400 to this single parent family. That is $1,128 more help, tax-free. If this single parent had two kids, the benefit would double.
The table below provides additional examples of the targeted help a Liberal government will provide to the middle class and those working hard to join it:
* family with one child under six, family with 2 children who are 4 and 8 years old, family with 3 chidren who are 4, 5 and 12 years old. Harper’s plan figures include the taxable UCCB. Figure is illustrative as varying provincial tax rates would also be applied, and the tax burden of Harper’s plan would vary based on distributions of income between couple parents.
HOW IT WORKSThe Canada Child Benefit starts at $6,400 per year, tax-free, per child under the age of 6. It starts at $5,400 per year, tax-free, per child 6 to 17 years old. The benefit level is tied to family income and slowly phases out, in order to focus help on the middle class and those working hard to join it.
The Canada Child Benefit also provides meaningful support to low-income families. Compared to the current system, the base benefit is of a higher dollar value. Further, the benefit phases out at a higher income level and more slowly than under the current system, meaning more support for the families that need it most.
The Canada Child Benefit requires no new administrative costs to deliver. It replaces and builds on the structure and success of the Canada Child Tax Benefit and National Child Bene-
fit Supplement, which were established in consultation with the provinces and territories. A Liberal government is committed to working with the provinces and territories as we imple-ment the new Canada Child Benefit. The benefit will be indexed to inflation year to year.
The charts below demonstrate how much one-child families – with a child under 6 or a child aged 6 to 17 – will receive annually when compared to the current system of benefits.
FISCAL IMPACTThe Canada Child Benefit builds on the existing, income-tested Canada Child Tax Benefit and the National Child Benefit Supplement. It replaces the Universal Child Care Benefit (UCCB), which provides significant benefits to Canada’s wealthiest families. A Liberal government will instead target those benefits to the middle class and those working hard to join it.
The Canada Child Benefit represents an incremental annual cost of $4 billion to the child benefit system. Half of this cost is offset by the Liberal commitment to cancel Mr. Harper’s $2 billion tax break that disproportionately benefits wealthy families. The remaining $2 billion cost represents a fiscal commitment that is part of the Liberal election platform. Our platform will be fully costed, and our commitment to balanced budgets will once again be demonstrat-ed through the fiscal plan that will be released with our full platform.
TECHNICAL DETAILSAs an income-tested benefit, the Canada Child Benefit gradually phases out to ensure that it is targeted to the middle class and those working hard to join it.
* per $100 of income
Consistent with the current child benefit system, family income will be calculated every July, based on the previous year’s income.
For 10 years, Stephen Harper has been ignoring the people who
do most of the heavy lifting in our economy. Those who work
longer and longer hours for an ever shrinking piece of the pie,
and less and less financial security.
We need middle class Canadians to have money in their pockets
to save, invest, and grow the economy – to bring back fairness
and to strengthen the heart of the Canadian economy.
A Liberal government will create the Canada Child Benefit (CCB): one fair, tax-free monthly child benefit that puts more money back in the pockets of the middle class and those working hard to join it.
This is a plan for fairness. Stephen Harper’s unfair system gives money to those who need it least. We will give middle class Canadian families more money to help with the high costs of raising kids. We will also provide more help to lower income Canadians.
THE PLANWe will cancel income splitting and other tax breaks and benefits for the wealthy;
We will build on the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS); and
We will invest more, providing help to the middle class and those working hard to join it.
WHAT IT MEANSAll families, with children, that have annual incomes below $150,000 will receive more in monthly child benefit payments than under Mr. Harper’s system. That is 9 out of every 10 Canadian families. We will cancel tax breaks and benefits for the wealthy to give more Canadi-an families money to raise their kids.
With the Liberal plan, a typical two-parent family, with two kids, earning $90,000 per year will get $490 tax-free every month. With Mr. Harper, the same family only receives around $275 after-tax. Over the course of a year, the Canada Child Benefit will provide $5,875 to this middle class family. That is $2,500 more help, tax-free.
With the Liberal plan, a typical one-parent family, with 1 child, earning $30,000 per year will get $533 tax-free every month. With Mr. Harper, the same family only receives around $440 after-tax. Over the course of a year, the Canada Child Benefit will provide $6,400 to this single parent family. That is $1,128 more help, tax-free. If this single parent had two kids, the benefit would double.
The table below provides additional examples of the targeted help a Liberal government will provide to the middle class and those working hard to join it:
* family with one child under six, family with 2 children who are 4 and 8 years old, family with 3 chidren who are 4, 5 and 12 years old. Harper’s plan figures include the taxable UCCB. Figure is illustrative as varying provincial tax rates would also be applied, and the tax burden of Harper’s plan would vary based on distributions of income between couple parents.
HOW IT WORKSThe Canada Child Benefit starts at $6,400 per year, tax-free, per child under the age of 6. It starts at $5,400 per year, tax-free, per child 6 to 17 years old. The benefit level is tied to family income and slowly phases out, in order to focus help on the middle class and those working hard to join it.
The Canada Child Benefit also provides meaningful support to low-income families. Compared to the current system, the base benefit is of a higher dollar value. Further, the benefit phases out at a higher income level and more slowly than under the current system, meaning more support for the families that need it most.
The Canada Child Benefit requires no new administrative costs to deliver. It replaces and builds on the structure and success of the Canada Child Tax Benefit and National Child Bene-
fit Supplement, which were established in consultation with the provinces and territories. A Liberal government is committed to working with the provinces and territories as we imple-ment the new Canada Child Benefit. The benefit will be indexed to inflation year to year.
The charts below demonstrate how much one-child families – with a child under 6 or a child aged 6 to 17 – will receive annually when compared to the current system of benefits.
FISCAL IMPACTThe Canada Child Benefit builds on the existing, income-tested Canada Child Tax Benefit and the National Child Benefit Supplement. It replaces the Universal Child Care Benefit (UCCB), which provides significant benefits to Canada’s wealthiest families. A Liberal government will instead target those benefits to the middle class and those working hard to join it.
The Canada Child Benefit represents an incremental annual cost of $4 billion to the child benefit system. Half of this cost is offset by the Liberal commitment to cancel Mr. Harper’s $2 billion tax break that disproportionately benefits wealthy families. The remaining $2 billion cost represents a fiscal commitment that is part of the Liberal election platform. Our platform will be fully costed, and our commitment to balanced budgets will once again be demonstrat-ed through the fiscal plan that will be released with our full platform.
TECHNICAL DETAILSAs an income-tested benefit, the Canada Child Benefit gradually phases out to ensure that it is targeted to the middle class and those working hard to join it.
* per $100 of income
Consistent with the current child benefit system, family income will be calculated every July, based on the previous year’s income.
CHILD BENEFITCANADATHE
A Liberal government will create the Canada Child Benefit (CCB): one fair, tax-free monthly child benefit that puts more money back in the pockets of the middle class and those working hard to join it.
This is a plan for fairness. Stephen Harper’s unfair system gives money to those who need it least. We will give middle class Canadian families more money to help with the high costs of raising kids. We will also provide more help to lower income Canadians.
THE PLANWe will cancel income splitting and other tax breaks and benefits for the wealthy;
We will build on the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS); and
We will invest more, providing help to the middle class and those working hard to join it.
WHAT IT MEANSAll families, with children, that have annual incomes below $150,000 will receive more in monthly child benefit payments than under Mr. Harper’s system. That is 9 out of every 10 Canadian families. We will cancel tax breaks and benefits for the wealthy to give more Canadi-an families money to raise their kids.
With the Liberal plan, a typical two-parent family, with two kids, earning $90,000 per year will get $490 tax-free every month. With Mr. Harper, the same family only receives around $275 after-tax. Over the course of a year, the Canada Child Benefit will provide $5,875 to this middle class family. That is $2,500 more help, tax-free.
12
3
With the Liberal plan, a typical one-parent family, with 1 child, earning $30,000 per year will get $533 tax-free every month. With Mr. Harper, the same family only receives around $440 after-tax. Over the course of a year, the Canada Child Benefit will provide $6,400 to this single parent family. That is $1,128 more help, tax-free. If this single parent had two kids, the benefit would double.
The table below provides additional examples of the targeted help a Liberal government will provide to the middle class and those working hard to join it:
* family with one child under six, family with 2 children who are 4 and 8 years old, family with 3 chidren who are 4, 5 and 12 years old. Harper’s plan figures include the taxable UCCB. Figure is illustrative as varying provincial tax rates would also be applied, and the tax burden of Harper’s plan would vary based on distributions of income between couple parents.
HOW IT WORKSThe Canada Child Benefit starts at $6,400 per year, tax-free, per child under the age of 6. It starts at $5,400 per year, tax-free, per child 6 to 17 years old. The benefit level is tied to family income and slowly phases out, in order to focus help on the middle class and those working hard to join it.
The Canada Child Benefit also provides meaningful support to low-income families. Compared to the current system, the base benefit is of a higher dollar value. Further, the benefit phases out at a higher income level and more slowly than under the current system, meaning more support for the families that need it most.
The Canada Child Benefit requires no new administrative costs to deliver. It replaces and builds on the structure and success of the Canada Child Tax Benefit and National Child Bene-
fit Supplement, which were established in consultation with the provinces and territories. A Liberal government is committed to working with the provinces and territories as we imple-ment the new Canada Child Benefit. The benefit will be indexed to inflation year to year.
The charts below demonstrate how much one-child families – with a child under 6 or a child aged 6 to 17 – will receive annually when compared to the current system of benefits.
FISCAL IMPACTThe Canada Child Benefit builds on the existing, income-tested Canada Child Tax Benefit and the National Child Benefit Supplement. It replaces the Universal Child Care Benefit (UCCB), which provides significant benefits to Canada’s wealthiest families. A Liberal government will instead target those benefits to the middle class and those working hard to join it.
The Canada Child Benefit represents an incremental annual cost of $4 billion to the child benefit system. Half of this cost is offset by the Liberal commitment to cancel Mr. Harper’s $2 billion tax break that disproportionately benefits wealthy families. The remaining $2 billion cost represents a fiscal commitment that is part of the Liberal election platform. Our platform will be fully costed, and our commitment to balanced budgets will once again be demonstrat-ed through the fiscal plan that will be released with our full platform.
TECHNICAL DETAILSAs an income-tested benefit, the Canada Child Benefit gradually phases out to ensure that it is targeted to the middle class and those working hard to join it.
* per $100 of income
Consistent with the current child benefit system, family income will be calculated every July, based on the previous year’s income.
3
Typicaltwo-parent
family
earning$90,000
with2 children
Benefit of$5,875
A Liberal government will create the Canada Child Benefit (CCB): one fair, tax-free monthly child benefit that puts more money back in the pockets of the middle class and those working hard to join it.
This is a plan for fairness. Stephen Harper’s unfair system gives money to those who need it least. We will give middle class Canadian families more money to help with the high costs of raising kids. We will also provide more help to lower income Canadians.
THE PLANWe will cancel income splitting and other tax breaks and benefits for the wealthy;
We will build on the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS); and
We will invest more, providing help to the middle class and those working hard to join it.
WHAT IT MEANSAll families, with children, that have annual incomes below $150,000 will receive more in monthly child benefit payments than under Mr. Harper’s system. That is 9 out of every 10 Canadian families. We will cancel tax breaks and benefits for the wealthy to give more Canadi-an families money to raise their kids.
With the Liberal plan, a typical two-parent family, with two kids, earning $90,000 per year will get $490 tax-free every month. With Mr. Harper, the same family only receives around $275 after-tax. Over the course of a year, the Canada Child Benefit will provide $5,875 to this middle class family. That is $2,500 more help, tax-free.
With the Liberal plan, a typical one-parent family, with 1 child, earning $30,000 per year will get $533 tax-free every month. With Mr. Harper, the same family only receives around $440 after-tax. Over the course of a year, the Canada Child Benefit will provide $6,400 to this single parent family. That is $1,128 more help, tax-free. If this single parent had two kids, the benefit would double.
The table below provides additional examples of the targeted help a Liberal government will provide to the middle class and those working hard to join it:
* family with one child under six, family with 2 children who are 4 and 8 years old, family with 3 chidren who are 4, 5 and 12 years old. Harper’s plan figures include the taxable UCCB. Figure is illustrative as varying provincial tax rates would also be applied, and the tax burden of Harper’s plan would vary based on distributions of income between couple parents.
HOW IT WORKSThe Canada Child Benefit starts at $6,400 per year, tax-free, per child under the age of 6. It starts at $5,400 per year, tax-free, per child 6 to 17 years old. The benefit level is tied to family income and slowly phases out, in order to focus help on the middle class and those working hard to join it.
The Canada Child Benefit also provides meaningful support to low-income families. Compared to the current system, the base benefit is of a higher dollar value. Further, the benefit phases out at a higher income level and more slowly than under the current system, meaning more support for the families that need it most.
The Canada Child Benefit requires no new administrative costs to deliver. It replaces and builds on the structure and success of the Canada Child Tax Benefit and National Child Bene-
FAMILY WITH
1 Child
HouseholdIncome
$15,000
$45,000
$90,000
$140,000
$200,000
$6,400
$5,380
$3,245
$1,695
$0
$5,825
$3,350
$2,125
$1,500
$1,425
OurPlan
Harper’sPlan
$11,800
$9,850
$5,875
$3,125
$0
$10,175
$5,900
$3,300
$2,050
$1,950
OurPlan
Harper’sPlan
$18,200
$15,800
$10,600
$6,600
$1,800
$15,725
$10,050
$6,560
$4,500
$3,400
OurPlan
Harper’sPlan
FAMILY WITH
2 ChildrenFAMILY WITH
3 Children
fit Supplement, which were established in consultation with the provinces and territories. A Liberal government is committed to working with the provinces and territories as we imple-ment the new Canada Child Benefit. The benefit will be indexed to inflation year to year.
The charts below demonstrate how much one-child families – with a child under 6 or a child aged 6 to 17 – will receive annually when compared to the current system of benefits.
FISCAL IMPACTThe Canada Child Benefit builds on the existing, income-tested Canada Child Tax Benefit and the National Child Benefit Supplement. It replaces the Universal Child Care Benefit (UCCB), which provides significant benefits to Canada’s wealthiest families. A Liberal government will instead target those benefits to the middle class and those working hard to join it.
The Canada Child Benefit represents an incremental annual cost of $4 billion to the child benefit system. Half of this cost is offset by the Liberal commitment to cancel Mr. Harper’s $2 billion tax break that disproportionately benefits wealthy families. The remaining $2 billion cost represents a fiscal commitment that is part of the Liberal election platform. Our platform will be fully costed, and our commitment to balanced budgets will once again be demonstrat-ed through the fiscal plan that will be released with our full platform.
TECHNICAL DETAILSAs an income-tested benefit, the Canada Child Benefit gradually phases out to ensure that it is targeted to the middle class and those working hard to join it.
* per $100 of income
Consistent with the current child benefit system, family income will be calculated every July, based on the previous year’s income.
4
Typicalone-parent
family
earning$30,000
with1 child
Benefit of$6,400
A Liberal government will create the Canada Child Benefit (CCB): one fair, tax-free monthly child benefit that puts more money back in the pockets of the middle class and those working hard to join it.
This is a plan for fairness. Stephen Harper’s unfair system gives money to those who need it least. We will give middle class Canadian families more money to help with the high costs of raising kids. We will also provide more help to lower income Canadians.
THE PLANWe will cancel income splitting and other tax breaks and benefits for the wealthy;
We will build on the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS); and
We will invest more, providing help to the middle class and those working hard to join it.
WHAT IT MEANSAll families, with children, that have annual incomes below $150,000 will receive more in monthly child benefit payments than under Mr. Harper’s system. That is 9 out of every 10 Canadian families. We will cancel tax breaks and benefits for the wealthy to give more Canadi-an families money to raise their kids.
With the Liberal plan, a typical two-parent family, with two kids, earning $90,000 per year will get $490 tax-free every month. With Mr. Harper, the same family only receives around $275 after-tax. Over the course of a year, the Canada Child Benefit will provide $5,875 to this middle class family. That is $2,500 more help, tax-free.
With the Liberal plan, a typical one-parent family, with 1 child, earning $30,000 per year will get $533 tax-free every month. With Mr. Harper, the same family only receives around $440 after-tax. Over the course of a year, the Canada Child Benefit will provide $6,400 to this single parent family. That is $1,128 more help, tax-free. If this single parent had two kids, the benefit would double.
The table below provides additional examples of the targeted help a Liberal government will provide to the middle class and those working hard to join it:
* family with one child under six, family with 2 children who are 4 and 8 years old, family with 3 chidren who are 4, 5 and 12 years old. Harper’s plan figures include the taxable UCCB. Figure is illustrative as varying provincial tax rates would also be applied, and the tax burden of Harper’s plan would vary based on distributions of income between couple parents.
HOW IT WORKSThe Canada Child Benefit starts at $6,400 per year, tax-free, per child under the age of 6. It starts at $5,400 per year, tax-free, per child 6 to 17 years old. The benefit level is tied to family income and slowly phases out, in order to focus help on the middle class and those working hard to join it.
The Canada Child Benefit also provides meaningful support to low-income families. Compared to the current system, the base benefit is of a higher dollar value. Further, the benefit phases out at a higher income level and more slowly than under the current system, meaning more support for the families that need it most.
The Canada Child Benefit requires no new administrative costs to deliver. It replaces and builds on the structure and success of the Canada Child Tax Benefit and National Child Bene-
fit Supplement, which were established in consultation with the provinces and territories. A Liberal government is committed to working with the provinces and territories as we imple-ment the new Canada Child Benefit. The benefit will be indexed to inflation year to year.
The charts below demonstrate how much one-child families – with a child under 6 or a child aged 6 to 17 – will receive annually when compared to the current system of benefits.
5
Annual Child Benefits ONE CHILD UNDER SIX
Ann
ual C
hild
Ben
efits
Household Income
Annual Child BenefitsONE CHILD SIX OR OLDER
Ann
ual C
hild
Ben
efits
Household Income
FISCAL IMPACTThe Canada Child Benefit builds on the existing, income-tested Canada Child Tax Benefit and the National Child Benefit Supplement. It replaces the Universal Child Care Benefit (UCCB), which provides significant benefits to Canada’s wealthiest families. A Liberal government will instead target those benefits to the middle class and those working hard to join it.
The Canada Child Benefit represents an incremental annual cost of $4 billion to the child benefit system. Half of this cost is offset by the Liberal commitment to cancel Mr. Harper’s $2 billion tax break that disproportionately benefits wealthy families. The remaining $2 billion cost represents a fiscal commitment that is part of the Liberal election platform. Our platform will be fully costed, and our commitment to balanced budgets will once again be demonstrat-ed through the fiscal plan that will be released with our full platform.
TECHNICAL DETAILSAs an income-tested benefit, the Canada Child Benefit gradually phases out to ensure that it is targeted to the middle class and those working hard to join it.
* per $100 of income
Consistent with the current child benefit system, family income will be calculated every July, based on the previous year’s income.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$0
$1
0,0
00
$2
0,0
00
$3
0,0
00
$4
0,0
00
$5
0,0
00
$6
0,0
00
$7
0,0
00
$8
0,0
00
$9
0,0
00
$1
00
,00
0
$1
10
,00
0
$1
20
,00
0
$1
30
,00
0
$1
40
,00
0
$1
50
,00
0
$1
60
,00
0
$1
70
,00
0
$1
80
,00
0
$1
90
,00
0
$2
00
,00
0
$2
10
,00
0
$2
20
,00
0
$2
30
,00
0
$2
40
,00
0
$2
50
,00
0
$1
,00
0,0
00
...
Canada Child Benefit
Harper’s Plan
Harper’s Plan
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$0
$1
0,0
00
$2
0,0
00
$3
0,0
00
$4
0,0
00
$5
0,0
00
$6
0,0
00
$7
0,0
00
$8
0,0
00
$9
0,0
00
$1
00
,00
0
$1
10
,00
0
$1
20
,00
0
$1
30
,00
0
$1
40
,00
0
$1
50
,00
0
$1
60
,00
0
$1
70
,00
0
$1
80
,00
0
$1
90
,00
0
$2
00
,00
0
$2
10
,00
0
$2
20
,00
0
$2
30
,00
0
$2
40
,00
0
$2
50
,00
0
$1
,00
0,0
00
...
Canada Child Benefit
A Liberal government will create the Canada Child Benefit (CCB): one fair, tax-free monthly child benefit that puts more money back in the pockets of the middle class and those working hard to join it.
This is a plan for fairness. Stephen Harper’s unfair system gives money to those who need it least. We will give middle class Canadian families more money to help with the high costs of raising kids. We will also provide more help to lower income Canadians.
THE PLANWe will cancel income splitting and other tax breaks and benefits for the wealthy;
We will build on the Canada Child Tax Benefit (CCTB) and the National Child Benefit Supplement (NCBS); and
We will invest more, providing help to the middle class and those working hard to join it.
WHAT IT MEANSAll families, with children, that have annual incomes below $150,000 will receive more in monthly child benefit payments than under Mr. Harper’s system. That is 9 out of every 10 Canadian families. We will cancel tax breaks and benefits for the wealthy to give more Canadi-an families money to raise their kids.
With the Liberal plan, a typical two-parent family, with two kids, earning $90,000 per year will get $490 tax-free every month. With Mr. Harper, the same family only receives around $275 after-tax. Over the course of a year, the Canada Child Benefit will provide $5,875 to this middle class family. That is $2,500 more help, tax-free.
With the Liberal plan, a typical one-parent family, with 1 child, earning $30,000 per year will get $533 tax-free every month. With Mr. Harper, the same family only receives around $440 after-tax. Over the course of a year, the Canada Child Benefit will provide $6,400 to this single parent family. That is $1,128 more help, tax-free. If this single parent had two kids, the benefit would double.
The table below provides additional examples of the targeted help a Liberal government will provide to the middle class and those working hard to join it:
* family with one child under six, family with 2 children who are 4 and 8 years old, family with 3 chidren who are 4, 5 and 12 years old. Harper’s plan figures include the taxable UCCB. Figure is illustrative as varying provincial tax rates would also be applied, and the tax burden of Harper’s plan would vary based on distributions of income between couple parents.
HOW IT WORKSThe Canada Child Benefit starts at $6,400 per year, tax-free, per child under the age of 6. It starts at $5,400 per year, tax-free, per child 6 to 17 years old. The benefit level is tied to family income and slowly phases out, in order to focus help on the middle class and those working hard to join it.
The Canada Child Benefit also provides meaningful support to low-income families. Compared to the current system, the base benefit is of a higher dollar value. Further, the benefit phases out at a higher income level and more slowly than under the current system, meaning more support for the families that need it most.
The Canada Child Benefit requires no new administrative costs to deliver. It replaces and builds on the structure and success of the Canada Child Tax Benefit and National Child Bene-
fit Supplement, which were established in consultation with the provinces and territories. A Liberal government is committed to working with the provinces and territories as we imple-ment the new Canada Child Benefit. The benefit will be indexed to inflation year to year.
The charts below demonstrate how much one-child families – with a child under 6 or a child aged 6 to 17 – will receive annually when compared to the current system of benefits.
FISCAL IMPACTThe Canada Child Benefit builds on the existing, income-tested Canada Child Tax Benefit and the National Child Benefit Supplement. It replaces the Universal Child Care Benefit (UCCB), which provides significant benefits to Canada’s wealthiest families. A Liberal government will instead target those benefits to the middle class and those working hard to join it.
The Canada Child Benefit represents an incremental annual cost of $4 billion to the child benefit system. Half of this cost is offset by the Liberal commitment to cancel Mr. Harper’s $2 billion tax break that disproportionately benefits wealthy families. The remaining $2 billion cost represents a fiscal commitment that is part of the Liberal election platform. Our platform will be fully costed, and our commitment to balanced budgets will once again be demonstrat-ed through the fiscal plan that will be released with our full platform.
TECHNICAL DETAILSAs an income-tested benefit, the Canada Child Benefit gradually phases out to ensure that it is targeted to the middle class and those working hard to join it.
* per $100 of income
Consistent with the current child benefit system, family income will be calculated every July, based on the previous year’s income.
Household Income
$0 - $30,000
$30,001 – $65,000
Family with one child
Family with two children
Family with three (or more) children
$65,001 +
Family with one child
Family with two children
Family with three (or more) children
0%
6.8%
13.0%
16.0%
3.1%
5.5%
8.0%
Phase-out rate*
6
7
* no impact on pension income splitting.
Cos
t (B
illio
ns o
f Dol
lars
)
$18B
– E
xist
ing
Chi
ld B
enefi
t Sys
tem
$2BNew Investment
Sing
le, s
impl
e C
anad
a C
hild
Ben
efit
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
$2BCancel Income Splitting*
• favours the wealthy
Cur
rent
, com
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ated
sys
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of b
enefi
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$22BCanada Child
Benefit• tax free
• income tested• targeted at middle class
and lower-income Canadians
Canada Child TaxBenefit and
National ChildBenefit Supplement
• not taxable• income tested
Universal ChildCare Benefit
• taxable• favours the wealthy
CLASS TAX CUTMIDDLETHE
A Liberal government will give a tax cut to middle class Canadians by asking the wealthiest Canadians to give a little more.
THE PLANWe will cut the middle class income tax bracket from 22 percent to 20.5 percent – a 7 percent reduction; and
We will introduce a new tax bracket of 33 percent for annual incomes over $200,000.
WHAT IT MEANSCanadians with taxable income between $44,700 and $89,401 per year will see their income tax rate fall. This tax relief is worth up to $670 per year, per person – or $1,340 per year for a two-income household. This middle class tax cut will make our system fairer by asking wealthi-er Canadians to pay a little more.
HOW IT WORKSUnlike Mr. Harper’s complicated tax schemes, the middle class tax cut is a broad-based cut to the personal income tax rate. All taxable income between $44,701 and $89,401 will be taxed at a lower rate.
The current bracket of 29 percent will be maintained for income in between $138,586 and $200,000. However, annual income greater than $200,000 will be taxed at a new rate of 33 percent. This will create a new, high-income bracket that will impact the wealthiest tax-filers, less than one percent of Canadians.
1
2
FISCAL IMPACTThe two tax changes will be revenue neutral to the federal government.
Reducing the middle income tax bracket will provide Canadians with $3.0 billion in annual tax relief. Creating a fifth tax bracket for annual incomes greater than $200,000 will generate increased revenues of $3.0 billion for the federal government.
8
This tax reliefis worth up to
$670/yearper person
9
A Liberal government will give a tax cut to middle class Canadians by asking the wealthiest Canadians to give a little more.
THE PLANWe will cut the middle class income tax bracket from 22 percent to 20.5 percent – a 7 percent reduction; and
We will introduce a new tax bracket of 33 percent for annual incomes over $200,000.
WHAT IT MEANSCanadians with taxable income between $44,700 and $89,401 per year will see their income tax rate fall. This tax relief is worth up to $670 per year, per person – or $1,340 per year for a two-income household. This middle class tax cut will make our system fairer by asking wealthi-er Canadians to pay a little more.
HOW IT WORKSUnlike Mr. Harper’s complicated tax schemes, the middle class tax cut is a broad-based cut to the personal income tax rate. All taxable income between $44,701 and $89,401 will be taxed at a lower rate.
The current bracket of 29 percent will be maintained for income in between $138,586 and $200,000. However, annual income greater than $200,000 will be taxed at a new rate of 33 percent. This will create a new, high-income bracket that will impact the wealthiest tax-filers, less than one percent of Canadians.
FISCAL IMPACTThe two tax changes will be revenue neutral to the federal government.
Reducing the middle income tax bracket will provide Canadians with $3.0 billion in annual tax relief. Creating a fifth tax bracket for annual incomes greater than $200,000 will generate increased revenues of $3.0 billion for the federal government.
Personal Income Tax Structure
29%26% 33%20.5%15%
26%22%15%
$0 $44,701 $89,401 $138,586 $200,000
29%
Cur
rent
Sys
tem
New
Sys
tem
Lower tax rateon middle class
incomes
New,high-incometax bracket
($0–$44,701)
($0–$44,701)
($44,701–$89,401)
($44,701–$89,401)
($89,401–$138,586)
($89,401–$138,586)
(Over $138,586)
($138,586–$200,000) (Over $200,000)