Children play at a Vancouver daycare centre, Sept. 5, 2019. (B.C. government)

Children play at a Vancouver daycare centre, Sept. 5, 2019. (B.C. government)

LETTER: Middle class better off with Trudeau’s child benefit boost

It’s a transfer, not a tax cut, but it helps families get ahead

Re: Did Trudeau really cut middle-class taxes? (Black Press Election 2019 series, Oct. 17)

While the overall message of the article provides a broad-strokes description of the major parties’ tax policies, Tom Fletcher cites a Fraser Institute report that found the Liberals’ tax changes caused 80 per cent of middle-class families to pay more taxes.

To generate this estimate, the authors of the report considered the net impact of a portfolio of Liberal tax changes. They looked at the middle-income rate reduction, the introduction of a new high income tax bracket, the elimination of income splitting, and the elimination of four different tax credits targeting families with children.

They chose to exclude from their analysis the replacement of the Canada Child Tax Benefit with the Canada Child Benefit, their reasoning being that this program is a transfer and not part of the income tax system and is therefore outside the scope of the study. Their report is on tax changes and tax changes alone. As such they found that the average middle-class family with a household income between $77,089 and $107,624 paid $644 more tax per year as a result of the Liberal tax changes.

RELATED: Canada Child Benefit misses some families on reserves

RELATED: B.C. expanded child care tax credit takes effect in 2020

The exclusion of the CCB means that the authors potentially did not account for as much as $3,796 in benefits for the class of family that is the subject of their study. Considering the full range of incomes identified in the study as “middle-class,” for a family with one child the analysis excluded benefits ranging from $1,782 to $3,796 per year.

Given these numbers, I find it unlikely that any middle-class parents found themselves poorer because of the Liberals’ tax policies, no matter how accurate the Fraser Institute’s estimation of an average annual net tax increase of $644 is. Further to that, the Department of Finance estimates that the CCB has lifted 300,000 children out of poverty in 2018, which might be the most positive news I have heard about our country for a long time.

Focusing exclusively on taxation the way the authors of the Fraser Institute’s report have done might provide us with accurate figures within the context of their narrow methodology, but ultimately misses the bigger, and in my opinion, more relevant picture.

Ian Benoit, Port Alberni

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

Just Posted

The proposed Skaha Lake Road housing project will be modelled after the Burdock House on Winnipeg St., said BC Housing.
BC Housing panel peppered with questions about Skaha housing project

Virtual meeting involved questions about crime, level of supports, timelines

(Stock photo)
EDITORIAL: COVID-19 restrictions continue to affect us all

Canada has recorded more than 700,000 confirmed cases of pandemic

Amanda Parsons, a registered nurse on staff at the Northwood Care facility, administers a dose of the Moderna vaccine to Ann Hicks, 77, in Halifax on Monday, Jan. 11, 2021. THE CANADIAN PRESS/Andrew Vaughan-Pool
61 new COVID-19 cases, two more deaths in Interior Health

Twenty-nine people are in hospital, seven of whom are in intensive care

Landmark Cinemas Penticton was forced to close down when the provincial government ordered all theatres to close when new COVID-19 restrictions were brought in Nov. 19, 2020. (Monique Tamminga Western News)
Despite ‘devastating’ losses the show will eventually go on at Penticton theatre

Landmark Cinemas has been offering movie popcorn since having to close in November

Ace Academy: Flight Experience is a digital interactive exhibition from the Canadian Aviation and Space Museum. The exhibition is currently at the Penticton Museum and Archives. (Canada and Aviation Space Museum)
Penticton museum hosts innovative way to simulate authentic flight experience

Ace Academy: Flight Experience is a digital interactive exhibition currently touring across Canada

Syringe is prepared with one of B.C.’s first vials of Pfizer vaccine to prevent COVID-19, Victoria, Dec. 22, 2020. (B.C. government)
B.C.’s COVID-19 caseload stays steady with 465 more Tuesday

No new outbreaks in health care facilities, 12 more deaths

A couple living at the Summerland Waterfront Resort is trying to sell their unit because of strata changes which will require them to pay significantly higher strata fees or have their unit included in the resort’s rental pool (John Arendt - Summerland Review)
Couple living at Summerland resort facing increases

Permanent residents of Summerland Waterfront Resort told fees will more than double

(Big White Ski Resort)
28 more cases of COVID-19 linked to Big White cluster

More than 200 cases have been identified since the cluster was announced

Police are seeking further witnesses after an elderly woman who was struck by a vehicle in Salmon Arm succumbed to her injuries. (File Photo)
Salmon Arm pedestrian dies after being hit by truck along Highway 1

Collision took place on Jan. 15 in downtown Salmon Arm, police looking for witnesses

A cow moose wanders around the Silver Star Elementary School neighbourhood Tuesday, Jan. 19. (Contributed)
Moose chases two people near North Okanagan school

Conservation and dog control attending to the situation

The sale of the Kirschner Mountain Development for $22M marks the largest in Realtor history, in the Okanagan. (Contributed)
Kelowna mountain development sold for $22M

The sale of the 640-acre Kirschner Mountain development has made the history books

New Westminster TV production designer, Rick Whitfield, has designed an office in a box for British Columbians in need of a private workspace. (BC Box Office photo)
PHOTOS: B.C. man designs ‘box office’ solution for those working from home

‘A professionally designed workspace on your property, away from the distractions of home’

Chilliwack ER doctor Marc Greidanus is featured in a video, published Jan. 18, 2021, where he demonstrates and describes effectiveness of various styles of masks. (Youtube)
VIDEO: Emergency room doctor runs through pros and cons of various masks

‘We’ve been asked to wear a mask and it’s not that hard,’ Greidanus says.

(Pixabay photo)
VIDEO: Tip to Metro Vancouver transit police helps woman 4,000 km away in Ohio

Sgt. Clint Hampton says transit police were alerted to a YouTube video of the woman in mental distress

Most Read