The Harper Government giveth, and it taketh away.
Christmas arrived early for Canadian families according to a Twitter comment made this week by Conservative MP and Employment Minister Pierre Poilievre. He was referring to the Universal Child Care Benefit (UCCB) payments that have rolled out for families with kids up to age 17. The big deal here, or at least what the government expects us to believe is a big deal, is that they’ve increased and expanded UCCB payments. As of January, parents now receive UCCB payments of $60 a month for kids ages six to 17. At the same time, UCCB payments for kids up to age six has been increased to $160 a month.
The other big deal is that Canadians are receiving this increase now, in a lump-sum, retroactive payment dating back to the beginning of the year.
There is no coincidence this is being done a matter of months before the federal election.
As it is with life, and many government announcements, with all good things there is a catch. For starters, along with increasing the UCCB, the government eliminated the child tax credit that allowed Canadians to claim $2,255 on their tax return for kids ages 18 and under. This amounts to a $338 loss for parents.
Secondly, UCCB payments are taxable income, both federally and provincially. For British Columbians, this amounts to a 20 to 45 per cent clawback of those payments, depending on total taxable income.
So parents, enjoy the early Christmas cash. Just remember, it’s going to cost you.
