Tax credits or cash? Federal parties spar over what’s best for parental benefits

Liberals promise to expand existing benefit, while Conservatives are promising a tax credit

Liberal Leader Justin Trudeau makes a campaign stop at a daycare in St. John’s, N.L., on Tuesday, Sept. 17, 2019. THE CANADIAN PRESS/Sean Kilpatrick

Is it better to be paid in credit or with cash?

That’s a question Liberals and Conservatives tusseled over Tuesday in the ongoing federal election competition for the votes of middle-class families.

The Liberals promised an expansion to existing child and parent benefit programs, including a pledge to make maternity and parental benefits tax-free, effectively one-upping their Conservative rivals who’d made a similar pitch last week.

For the Liberals, the promise came in the form of a commitment to removing the taxes from the benefits.

“You’ll get every dollar right when you need it, since no taxes will be taken off the EI cheque when new parents receive it,” Trudeau said at an event in St. John’s, N.L.

The Conservatives, who have also claimed to be making the benefits tax-free, are promising a tax credit. So parents would still see their benefits taxed by the government, but they’d get a tax credit in return.

The duelling pitches underscore the differing ideological approaches taken by the parties on how best to woo voters.

Since the campaign began last Wednesday, the Conservatives have focused nearly exclusively on promising a wide array of tax cuts.

By contrast, the Liberals have focused on increased program spending and, in the case of benefits for families, straight cash — both in taking the taxes off the benefits, and via the promise Tuesday to expand the existing Canada Child Benefit to give more money to parents with children under the age of one.

READ MORE: Rick Mercer calls out Conservative candidate in B.C. for misleading meme

Conservative Leader Andrew Scheer argued the Liberals were in fact adopting a Tory tone by expanding the CCB.

The CCB sends parents a monthly cheque if their income is below a certain threshold. Under the previous Conservative government, there had been a similar program that saw all families — regardless of income — also receive a monthly payment.

“That is a Conservative principle, knowing that moms and dads make choices for their kids better than bureaucrats in Ottawa,” Scheer said at an event in Winnipeg.

He was there to promote his latest policy idea, a commitment to increase the amount of money the federal government puts into Registered Education Savings Plans. Like several others so far this campaign, it’s an updated version of something the Conservatives promised in 2015.

But behind the scenes, Scheer’s team was working furiously to explain why their parental benefit package was better then Trudeau’s. They’d already come under criticism for calling it “tax free,” as the benefits actually remain taxed.

In a background document circulated to reporters, they argued that with a 15 per cent tax credit applied across the board, people would benefit from the program equally, and in some cases see their tax savings be higher than the amount of money that’s currently deducted for taxes on the benefit cheques.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Group desperate to find solution to wrecks lining shores of Cadboro Bay

Caddy Bay ‘a wild west’ without authority, say locals

Greater Victoria tourism industry ‘can’t wait any longer’ for financial aid

Saanich mayor, business owners call on provincial, federal governments for tourism-specific aid

COVID-19 demolishes new construction in Greater Victoria

Value of new building permits in Greater Victoria drop more than 37 per cent

Pool deck turns patio as Saanich restaurant cooks up creative outdoor seating options

District supports local businesses such as The Lakes Restaurant in creating seating

No architect for Langford building ruled ‘unreasonable’ by B.C. Supreme Court

Legal action brought against City in 2019 for permit issued on Hoffman Avenue building

If Trudeau won’t stand up to Trump, how will regular people: Singh

Trudeau did not directly answer a question about Trump’s actions amid protests

POLL: Are you sending your children back to school this month?

Classrooms looked decidedly different when students headed back to school for the… Continue reading

VIDEO: Internal investigation into aggressive arrest by Kelowna Mountie

A video allegedly shows a Kelowna Mountie striking a man several times

Gold River ready to welcome visitors and restart local businesses

In contrast to single-industry remote communities, Gold River’s diversified economy might help it better survive after reopening

22 new COVID-19 test-positives, one death following days of low case counts in B.C.

Health officials urged British Columbians to ‘stand together while staying apart’

John Horgan says COVID-19 restrictions won’t be eased regionally

B.C. Liberals urge ‘tailored’ response based on infections

Feds get failing grade for lack of action plan on anniversary of MMIWG report

‘Instead of a National Action Plan, we have been left with a Lack-of-Action Plan’

Search and rescue crews help locate 62-year-old Nanoose Bay mountain biker

RCMP: Man got lost on trail and did right thing by calling for assistance

B.C. ranchers, lodge operators say Indigenous land title shuts them out

Tsilhqot’in jurisdiction affects grazing, access to private property

Most Read