Face of Nation : Conservative Leader Andrew Scheer says that, if his party forms the next federal government, he’ll make Employment Insurance (EI) benefits for new parents tax-free to ease the cost of raising a child in Canada.
Scheer made the announcement during a campaign-style stop at a Toronto-area child care centre, touting the promise as a cornerstone of the Conservative plan to make life more affordable for Canadian families through a series of tax cuts.
The major party leaders have fanned out across the country in recent days, announcing billions of dollars in new spending commitments to woo voters ahead of the fall federal election. Prime Minister Justin Trudeau is expected to formally call an election sometime after Labour Day.
The Liberal Party also has targeted new spending commitments at swing voters in key battleground ridings, including ridings in Atlantic Canada, the Quebec City area, the Toronto suburbs, southwestern Ontario and B.C.’s Lower Mainland.
The Conservative plan would give new parents a non-refundable tax credit of 15 per cent on EI income, which essentially would eliminate the federal portion of the tax collected on this income support. Scheer said a person earning a salary of $50,000, who then goes on EI benefits after a birth, would save about $4,000.
“The government shouldn’t tax parents for the time they take to care for and bond with their new child when they’re already making such a huge sacrifice,” Scheer said. “This will help families across Canada get ahead.”
However, a non-refundable tax credit is not much use for low-income parents, as they already pay very little or no federal income tax.
Scheer first proposed this measure last year in a private member’s bill, a piece of legislation that was defeated by the Liberal majority in the House of Commons.
“At the end of the day, Justin Trudeau thinks he can spend your money better than you,” Scheer said, adding “endless” Liberal deficits will lead inevitably to higher taxes.
“There’s a real cost of living crunch in this country and Justin Trudeau’s running around making things more expensive with carbon taxes, with increased payroll taxes. He hasn’t done anything to address real issues like housing and things like that.”
The parliamentary budget officer (PBO) estimated Scheer’s tax break for parents would cost the federal government some $607 million in lost revenue each year. The Liberal government also has pinned its re-election hopes on a plan to make life more affordable for middle-class Canadians.
