Statements

Justin Trudeau votes against tax cut for middle-class families

Conservative Party of Canada | June 6, 2018

Ottawa, ON - The Leader of Canada’s Conservatives, the Honourable Andrew Scheer, today released the following statement after Justin Trudeau and his Liberal MPs defeated Conservative legislation that would have lowered taxes for new parents:

"Life has gotten more expensive for young families under Justin Trudeau, and it’s disappointing that the Prime Minister would oppose measures that would lower taxes for the middle class families who pay higher taxes as a result of Liberal policies.

“This important bill would give Canadian parents – who make so many sacrifices for their new children, including a leave from work -- a break by eliminating the federal tax on parental leave benefits.

“Welcoming a child into a young family is an incredibly special moment for so many parents. Canada’s Conservatives understand that the government shouldn’t be taxing the time parents take to be with their children during those important early years. For any young family, this important tax relief could make a huge difference for young parents in the costs of raising an infant. This is so important at a time when the cost of living continues to rise for parents under this Liberal government.”

“Despite the Prime Minister’s opposition to this tax cut, a Conservative government will reintroduce the Supporting New Parents Act and put more money back in the pockets of hardworking families.”

Backgrounder: The Supporting New Parents Act

Introduction

On February 1, 2018, the Hon. Andrew Scheer announced the Supporting New Parents Act.

The purpose of the legislation is to remove federal income tax from benefits received under the EI maternity and EI parental programs.

The Critical Early Years

The arrival of a new child is one of the most important moments in a parent’s life. Yet, because of the financial pressures that come with additional costs of caring for a newborn and the decision to take leave from one’s employment, it can also be a stressful time for a parent. For this reason, the proposed legislation would take steps to provide parents with additional tax relief.

Canada’s Conservatives understand that the government should not be taxing the time parents take to bond with their new child.

Policy Details

  • The Supporting New Parents Act would remove federal income tax from EI maternity and EI parental benefits by providing a non-refundable tax credit for any income earned under these two programs. A non-refundable tax credit amounts to a 15% tax rebate on these benefits.

    • It also provides a tax credit of an equivalent amount for residents of Quebec who receive benefits under the Quebec Parental Insurance Plan (QPIP).
  • The benefit to an average Canadian whose regular salary is $50,000 would be about $4,000.

  • The tax credit is for EI maternity benefits and EI parental benefits.

    • Under EI maternity, the birth mother can receive benefits for up to 15 weeks.

    • Under EI parental, new parents – either parent or a combination of both – can receive additional benefits for up to 35 weeks.

Under the recent expansion to EI, parental benefits, parents can take benefits up to 61 weeks at a reduced wage replacement of 33%.

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For more information, please contact:

Daniel Schow - Daniel.Schow@parl.gc.ca - (613) 286-1050

Virginie Bonneau - Virginie.Bonneau@parl.gc.ca - (613) 294-8150