The Canadian Federal Budget goes to a vote in the House of Commons next Tuesday and it may contain some interesting ways of making ends meet.
In an earlier post I questioned the Conservative plan for child-care. I didn’t know whether the numbers would work out in favour of parents or not. From everything I’ve read, it sounds like there aren’t too many who will benefit from the child-care allowance.
This morning when I checked my email I read Jonathan Monpetit’s article in the Maisonneuve Mediscout newsletter I came across an article talking about both the child-care allowance and the reduction of the GST.
From the sound of Monpetit’s article there’s talk of funding the GST cut by increasing the tax rate for the lowest income earners by 1%. I sincerely hope this is just speculation and this isn’t, in fact, going to happen.
Harper’s Poor Friends
…the Conservatives plan to axe something called the Canada Child Tax Benefit in order to pay for their $1,200 per year payment to parents. According to the Caledon Institute, a think-tank focusing on child-care issues, rolling back the child tax benefit means taking $249 out of the pockets of low-income families, whereas higher-income families never qualified for the benefit in the first place. After crunching some numbers, the Caledon report concludes that, under the proposed new child-care scheme, families making $200,000 annually will be able to keep more than $1,000 of their $1,200 allotment after taxes. In contrast, families making $30,000 will be able to keep less than $200 of their $1,200 stipend. To add insult to injury, Conservatives have said the GST could be partly financed by a 1 percent increase to the country’s lowest income tax rate.
I hope this isn’t a case of taking from the least wealthy to finance campaign promises – a case of robbin’ hoods.