How Federal Budget 2016 Aims to Help Middle-Class Wallets, and Target Wealthy Canadians: ‘A Classic Soak the Rich Scheme’
The promise is that nine out of 10 Canadian families will receive more in child benefits after Tuesday’s budget.
Out of luck, depending on your perspective, are the wealthy, who will be deprived of some key tax-deferral vehicles.
$2,300: Average increase in child benefits for families in 2016-2017
$25,000: New income threshold for repayment of student loans
$947: New top-level Guaranteed Income Supplement for single, low-income seniors
“It’s a classic soak the rich scheme,” said Aaron Wudrick, federal director of the Canadian Taxpayers Federation. “When you talk about the one per cent, a lot of these people are living in Toronto and Vancouver. Making $100,000 or $150,000, you’re not starving but you’re not one of these people with a yacht or Rolls Royce and that’s disconcerting: These people are essentially middle class and they are not benefitting from these measures.”
One of those measures is the new Canada Child Benefit, which will provide families with a single, tax-exempt payment every month, replacing the current system of combined National Child Benefit Supplement, Canada Child Tax Benefit and Universal Child Care Benefit. Higher income Canadians, generally families with incomes of $150,000 or more, will receive lower benefits under the new system.
Dubbed Growing The Middle Class, the Liberal budget will see an average increase in child benefits of almost $2,300 in 2016-2017.
Under the new system, the maximum annual benefits will be $6,400 per child under age 6 and up to $5,400 for children ages 6 to 17. Families with less than $30,000 in net income are eligible to receive the maximum benefit.