Tax credits or cash? Federal parties spar over what’s best for parental benefits

Liberals promise to expand existing benefit, while Conservatives are promising a tax credit

Liberal Leader Justin Trudeau makes a campaign stop at a daycare in St. John’s, N.L., on Tuesday, Sept. 17, 2019. THE CANADIAN PRESS/Sean Kilpatrick

Is it better to be paid in credit or with cash?

That’s a question Liberals and Conservatives tusseled over Tuesday in the ongoing federal election competition for the votes of middle-class families.

The Liberals promised an expansion to existing child and parent benefit programs, including a pledge to make maternity and parental benefits tax-free, effectively one-upping their Conservative rivals who’d made a similar pitch last week.

For the Liberals, the promise came in the form of a commitment to removing the taxes from the benefits.

“You’ll get every dollar right when you need it, since no taxes will be taken off the EI cheque when new parents receive it,” Trudeau said at an event in St. John’s, N.L.

The Conservatives, who have also claimed to be making the benefits tax-free, are promising a tax credit. So parents would still see their benefits taxed by the government, but they’d get a tax credit in return.

The duelling pitches underscore the differing ideological approaches taken by the parties on how best to woo voters.

Since the campaign began last Wednesday, the Conservatives have focused nearly exclusively on promising a wide array of tax cuts.

By contrast, the Liberals have focused on increased program spending and, in the case of benefits for families, straight cash — both in taking the taxes off the benefits, and via the promise Tuesday to expand the existing Canada Child Benefit to give more money to parents with children under the age of one.

READ MORE: Rick Mercer calls out Conservative candidate in B.C. for misleading meme

Conservative Leader Andrew Scheer argued the Liberals were in fact adopting a Tory tone by expanding the CCB.

The CCB sends parents a monthly cheque if their income is below a certain threshold. Under the previous Conservative government, there had been a similar program that saw all families — regardless of income — also receive a monthly payment.

“That is a Conservative principle, knowing that moms and dads make choices for their kids better than bureaucrats in Ottawa,” Scheer said at an event in Winnipeg.

He was there to promote his latest policy idea, a commitment to increase the amount of money the federal government puts into Registered Education Savings Plans. Like several others so far this campaign, it’s an updated version of something the Conservatives promised in 2015.

But behind the scenes, Scheer’s team was working furiously to explain why their parental benefit package was better then Trudeau’s. They’d already come under criticism for calling it “tax free,” as the benefits actually remain taxed.

In a background document circulated to reporters, they argued that with a 15 per cent tax credit applied across the board, people would benefit from the program equally, and in some cases see their tax savings be higher than the amount of money that’s currently deducted for taxes on the benefit cheques.

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Cops make fentanyl bust in Castlegar

Over 280 pills among drugs seized

Christina Lake artist finds fans in Hollywood

Cindy Alblas spent a day mingling with celebrities and offering them stained glass art last month

Federal candidates debate environmental issues in Castlegar

Few sparks and much agreement between candidates that action is needed

South Okanagan-West Kootenay election a ‘toss-up’: 338Canada

The Conservatives are currently leading the NDP by a slim margin

Check your mail for your Voter Information Card

Your Voter Information Card identifies where you can vote in advance and on election day

B.C.’s rural paramedic program expands, with home support

Advanced care ambulance staff added for six communities

BC Ferries sees steady traffic of post-Thanksgiving weekend travellers

Ferries filling up fast, sailing waits at some terminals

‘Save the kids!’ Dorian survivor tells the harrowing story of his Canadian wife’s death

Family held a funeral and placed Alishia Liolli’s remains in a niche at a cemetery in Windsor, Ont.

Okanagan woman, 91, votes at advance polls despite broken hip, shoulder and wrist

Angela Maynard has voted in almost every election during her lifetime

Heiltsuk Nation open first Big House in 120 years in northern B.C.

Opening means the community now has an appropriate space for spiritual and ceremonial events

Singh says NDP would form coalition with the Liberals to stop Tories

Singh was in a Liberal-held riding Sunday afternoon in Surrey where he was pressed about his post-election intentions

‘My heart goes out to the mother’: B.C. dad reacts to stabbing death of Ontario boy

Carson Crimeni, who was also 14, was bullied relentlessly, his dad says

BC Ferries filling up fast with post-Thanksgiving weekend travellers

Monday anticipated to be busiest day of the weekend

‘Wham-bam out the door’: Surrey man’s front yard left ruined by scamming landscaper

Resident warns neighbours to be careful of door-to-door salesmen

Most Read