ANALYSIS: 3 things to know about the UCCB payments' impact

Jul 22, 2015

By Evan Dyer, CBC News

On Monday as the Conservative MPs promoted the $3 billion lump sum for universal child care benefit, which the government says will help families and stimulate the economy without negatively affecting the projected budget surplus.

The government announced last fall it would increase the monthly UCCB payment for children under six to $160 from $100, and added a $60 payment for children aged six to 17 effective Jan. 1.

The government additionally delivered the firs 7 months of payments this week in lump sum payments amounting to $420 or $520 per child 

The UCCB goes to parents of minor children whether they pay tax or not — but it is also taxable, both federally and provincially. An Ontario parent earning $50,000, for example, pays income tax at a combined marginal rate of 31.15 per cent. So, with $720 of added income from the UCCB, an additional $224.28 would be clawed back as taxes next year.

Those two factors leave $158.22 a year per child for that Ontario parent, or an additional $13.18 a month net.

Realistically, after the taxes Canadian parents will keep less than one third amount of the UCCB and some even less...

 

Read the full article here

Do you like this post?

Be the first to comment