Three years ago, the Government of Canada launched the Canada Child Benefit (CCB) to aid low and middle-income families with the high costs of raising children. The CCB is tax-free and renders more money to 9 out of 10 families in Canada, as opposed to previous child benefit programs. These benefits are allocated to each family based on the number of children living in the household, the age of each child and yearly household income.
The federal government has announced an increase to the Canada Child Benefit (CCB), which came into effect on July 20, 2019. According to Brampton North MP Ruby Sahota, “The Canada Child Benefit has helped millions of middle-class Canadian families since its creation in 2016. Today’s announcement means more money in the pockets of Canadians.”
Jamie Golombek, Managing Director of Tax and Estate Planning at CIBC Private Wealth Management shared that, “the majority of people we speak to about it are quite positive because they’ll get more money.” Nevertheless, Golombek acknowledges two concerns about the CCB. One is in regards to high-income families who may not receive these benefits. The other is for single-person households who do not believe in their tax dollars being contributed to subsidizing families who have children.
Most critics believe that an increase in the Canada Child Benefit may encourage residents to primarily rely on these benefits. They are concerned that families will no longer work for a higher income due to the requirements of the Canada Child Benefit, preventing economic prosperity. One CCB beneficiary expressed their thoughts saying, “My monthly benefit decreases to almost nothing. Makes more sense for me to quit working. Less income means more benefit cash and I wouldn’t have to pay for daycare! Thanks Trudeau.”
To learn more about the increases to the Canada Child Benefit and new requirements, please visit https://www.canada.ca/en/employment-social-development/campaigns/canada-child-benefit.html.
Image Credits: https://www.macleans.ca/economy/economicanalysis/what-you-need-to-know-about-the-universal-child-care-benefit/
Editors: Shantel Watson and Risheena Banerji
