Backgrounder
Net Impact of Measures to Make Life More Affordable for Canadians
Net Impact of Measures to Make Life More Affordable for Canadians
(Typical Family of Four)
| Measure |
Benefit in 2020 |
Benefit in 2023 |
| Increase in Child Benefits |
$2,136 |
$2,362 |
| Middle Class Tax Cut |
$186 |
$186 |
| Increase in Basic Personal Amount |
$279 |
$589 |
| Eliminating Certain Tax Credits |
-$275 |
-$290 |
| Net Benefit |
$2,326 |
$2,846 |
| Notes: The above estimates are based on the methodology used in the 2018 report, Real Progress for Canada’s Middle Class. They assume family total income of $112,000 in 2020 and $118,000 in 2023, that deductions are split 60%/40% between spouses, and that combined total deductions (e.g. Registered Retirement Savings Plan contributions, child care expenses) are equal to about 9% of total income (not including contributions to the enhanced Canada Pension Plan). The “Increase in Child Benefits” line reflects the replacement of the old child benefit system with the Canada Child Benefit and the elimination of income splitting for families with children. The Canada Child Benefit estimate assumes one child aged 6-17 and another under 6, is for the 2020-21 or 2023-24 benefit year, and reflects federal and provincial (Ontario) taxes that would have been paid on the Universal Child Care Benefit. The “Eliminating Certain Tax Credits” line reflects the elimination of the Children’s Fitness and Arts Tax Credits. |
