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Canada Child Tax Benefit (CCTB)

Canada Child Tax Benefit (CCTB). What is CCTB?. “CCTB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.”. What are the objectives of CCTB?. To reduce child poverty To promote attachment to the workforce

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Canada Child Tax Benefit (CCTB)

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  1. Canada Child Tax Benefit(CCTB)

  2. What is CCTB? • “CCTB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under age 18.”

  3. What are the objectives of CCTB? • To reduce child poverty • To promote attachment to the workforce • To provide harmonization of programs and avoid duplication

  4. Who is eligible for CCTB? • You must be the person who is primarily responsible for the care and upbringing of a child under the age of 18

  5. How much does a family receive? • Basic benefit: $1283 per child under 18 • Plus $90 for a third and each additional child • Benefit Reduction: if family net income > $37,178: • One-child: reduction is 2% of the amount of family net income that is > $37,178 • Two or more children: reduction is 4% • Payment amounts

  6. Is CCTB achieving its objectives? • Changes in key trends indicate some success: • More low-income families are earning money from employment • Decline in number of children in families living on low income

  7. Is CCTB achieving its objectives?Continued …. • One-earner families vs. single-parent and two-earner families • One-earner families, who deserve more CCTB than single-parent and two-earner families are indeed the ones who receive the most CCTB

  8. Is CCTB achieving its objectives?Continued …. • Benefits have increased over time • The 2004 CCTB had highest average benefits

  9. How does CCTB affect family decision making? • Depends on family type: single parent vs. two parent, traditional views or not • Cost Benefit Analysis to decide if second potential wage earner in a one earner family should work outside the home

  10. What are the criticisms of the CCTB? CCTB violates horizontal equity...

  11. What are the criticisms of the CCTB?Continued…. Negative impacts on women...

  12. THE END By: Anam Kidwai, Sumita Kanga, Ridhi Kukreja and Safia Ahmed

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