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

Residents treated for smoke inhalation after fire in Maple Ridge building

Fire took place in the 11800 block of Laity Street

Muse proceeds with cannabis store in Westgate Shopping Centre

Private retail store would be within 1,000m of proposed government store in Maple Ridge

VIDEO: Person falls from roof in Maple Ridge

Air ambulance was called but victim taken by ground instead

Friends do ‘amazing’ home makeover for retired police officer

Pitt Meadows RCMP veteran was away getting treatment for PTSD

Canucks ride momentum into NHL playoff series against defending Stanley Cup champs

PREVIEW: Vancouver opens against St. Louis on Wednesday

Man, 54, charged in connection with fatal attack of Red Deer doctor

Doctor was killed in his walk-in clinic on Monday

One dead as fish boat sinks off southern Vancouver Island

Shawnigan Lake-registered Arctic Fox II went down off Cape Flattery, west of Victoria

Landlord takes front door, windows after single B.C. mom late with rent

Maple Ridge mom gets help from community generosity and government

42 more people test positive for COVID-19 in B.C.

The province has recorded no new deaths in recent days

Joe Biden selects California Sen. Kamala Harris as running mate

Harris and Biden plan to deliver remarks Wednesday in Wilmington

Displaced tenant ‘heartbroken’ to find Langley City condo robbed after fire

Wedding rings of Michelle Buchan’s have since been recovered, but much is still missing

Canucks fan risks life to celebrate at Surrey intersection

‘All fun and games until somebody falls out an open side door of the van’

Most Read