During a campaign event in Russell, Ont., Conservative Leader Erin O’Toole highlighted his plan to replace the tax deduction that parents can claim for childcare expenses with a refundable tax credit as the election deadline near.
Lower-income Canadians would profit the most from the party’s proposal, according to the party, because they would be able to get up to $6,000 of their yearly child-care expenses repaid.
Parents could claim up to $8,000 in acceptable annual costs per child under the age of seven and $5,000 for children aged seven to fifteen.
Canada’s lowest-income families would have up to 75 per cent of those costs covered, and as incomes rise, the percentage would drop to a minimum of 26 per cent.
The Tories say because the tax credit is refundable, lower-income families would get the full amount reimbursed even if it pushes their tax bill below zero.
The party says the current child-care expense deduction benefits the rich because parents who earn the most get the highest deductions.
Source_ the canadian press