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

Just Posted

Councillor Doug Elford. (File photo: Amy Reid)
Elford to join Surrey Homelessness and Housing Society as a director

Fellow Safe Surrey Coalition Councillors Laurie Guerra, Mandeep Nagra and Allison Patton will be re-appointed to the board

(Photo: Tom Zytaruk)
Surrey council moves to reduce parking along rapid transit corridors

This also targets rental housing developments in Rapid Transit Areas

Big Splash water park is located in Tsawwassen. (submitted photo)
Big Splash reopens Canada Day with changes to keep the water park ‘safe for everyone’

Executive Hotels & Resorts has owned and operated the attraction since 2017

A cyclist stops traffic to allow a gaggle of geese cross the road. (Tino Fluckiger photo)
White Rock man asks motorists to be mindful of wildlife after close call

Impatient motorists drives into oncoming traffic

Elgin Park Secondary students rally for climate change outside of their South Surrey in 2019. (Nick Greenizan photo)
City of Surrey set to host online climate-action panel

June 23 Zoom event to include speakers, question-and-answer period

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

Tk’emlups te Secwepemc Chief Rosanne Casimir stands outside the former Kamloops Indian Residential School after speaking to reporters, in Kamloops, B.C., on Friday, June 4, 2021.THE CANADIAN PRESS/Darryl Dyck
Kamloops chief says more unmarked graves will be found across Canada

Chief Rosanne Casimir told a virtual news conference the nation expects to release a report at the end of June

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Green party Leader Annamie Paul speaks during a news conference on Parliament Hill in Ottawa on Tuesday, June 15, 2021. Paul has survived another day of party strife after a planned ouster shifted course, leaving her with a tenuous grip on power ahead of a likely federal election this year. THE CANADIAN PRESS/Justin Tang
Green Leader Annamie Paul blasts ‘racist,’ ‘sexist’ party execs who sought ouster

Fallout has continued, with two of the federal council’s members resigning

Most Read