SSP influences decision on new low-income tax benefit - SRDC

SSP influences decision on new low-income tax benefit

November 14, 2005


On November 14, in his economic and fiscal update, the Minister of Finance announced his intention to work with provinces to implement a new Working Income Tax Benefit (WITB), and he initially set aside $2.2 billion for this purpose. Although details remain to be worked out, the example provided by the Finance Minster would see low-income families receiving a benefit of 30 cents for each dollar they earned in excess of $3,000 up to a maximum benefit of $1,000 a year. The benefit would be reduced for families with incomes in excess of $18,000, and no benefit would be paid to families with annual incomes of $28,000 or more. The WITB was described by the Minister as a strategy to help “make work pay.” At the Making Work Pay symposium organized by SRDC and held later that same week (see above), a Finance Canada official stated that the lessons from SRDC’s Self-Sufficiency Project (SSP) were integrated into the policy briefings that informed the decision-making on the WITB.

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