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Family Tax Cuts

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FOR IMMEDIATE RELEASE

OTTAWA – Prime Minister Stephen Harper, joined by Finance Minister Joe Oliver, announced new measures to help make life more affordable for Canadian families.  The proposed measures include The Family Tax cut, the increase and expansion of the Universal Child Care Benefit (UCCB) and the Increase of the Child Care Expense Deduction dollar limit.

“I am pleased that our Government is returning from a deficit position ahead of schedule, thus allowing us to meet our 2011 campaign promise implement these new measures that will help Canadian families make ends meet”, said Ritz.

The Family Tax Cut, is a federal tax credit that will allow a higher-income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. The credit will provide tax relief – capped at $2,000 – for couples with children under the age of 18, effective for the 2014 tax year. Income splitting is helping seniors across the country, which is why the Government is proposing similar relief for families.

Our government will increase the Universal Child Care Benefit (UCCB) for children under age six. As of January 1, 2015, parents will receive a benefit of $160 per month for each child under the age of six – up from $100 per month. In a year, parents will receive up to $1,920 per child.

We are expanding the UCCB to children aged six through 17. As of January 1, 2015, under the expanded UCCB, parents will receive a benefit of $60 per month for children aged six through 17. In a year, parents will receive up to $720 per child. 

The increase in the Child Care Expense Deduction dollar limits by $1,000, will be effective for the 2015 tax year. The maximum amounts that can be claimed will increase to $8,000 from $7,000 for children under age seven, to $5,000 from $4,000 for children aged seven through 16, and to $11,000 from $10,000 for children who are eligible for the Disability Tax Credit. 

“All families with children will benefit from the new measures introduced by our Government”, says Ritz.

Quick Facts

• All families with children will benefit from the new measures introduced by our Government. The average tax relief and benefits for these families will be $1,140 in 2015.
• Low and middle-income families will receive two-thirds of the overall benefits provided by the package.
• The Family Tax Cut will eliminate or significantly reduce the difference in the federal tax payable by a one-earner couple relative to a two-earner couple with a similar family income.
• The Government intends to double the Children’s Fitness Tax Credit and make it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.

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For more information call the office of Hon. Gerry Ritz 613-992-9703