ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Illustrative Scenarios for the Family Tax Relief and Benefit Package in 2015
2
(Families with One Child under 6)
3
Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit):  Family Income (before Universal Child Benefit):  $30,000Family Income (before Universal Child Benefit):  $50,000
4
$60,000 $120,000 $200,000
5
One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple Two-earner couple Single Parent Single Parent
6
(80%/20%)(60%/40%)
7
Spouse 1: $60,000  Spouse 2: $0Spouse 1: Spouse 1: $36,000 Spouse 2: $24,000Spouse 1: $120,000 Spouse 2: Spouse 1: Spouse 1: Spouse 1: $200,000 Spouse 1: $160,000 Spouse 1: $120,000 $30,000 $50,000
8
$48,000 $0 $96,000 $72,000 Spouse 2: $0Spouse 2: $40,000Spouse 2:
9
Spouse 2: Spouse 2: Spouse 2: $80,000
10
$12,000 $24,000 $48,000
11
New Universal Child Benefit ($60/month)$720$720$720$720$720$720$720$720$720$720$720
12
   Minus: $108$108$108$108$108$108$108$108$158$108$108
13
   Federal tax*
14
   Repeal of the Child $344$344$344$344$344$344$344$344$344-$344
15
   Tax Credit
16
Total$268$268$268$268$268$268$268$268$218$612$268
17
A $1,000 increase in the maximum amounts that can be claimed under the Child Care Expense Deduction-$150$150-$150$150-$150$220-$150
18
Children’s Fitness Tax Credit Enhancement$75$75$75$75$75$75$75$75$75$150$75
19
Family Tax Cut$1,071$500$0$2,000$2,000$195$2,000$2,000$619--
20
Total Relief/Benefits$1,414$993$493$2,343$2,493$688$2,343$2,493$1,132$762$493
21
Federal Tax Paid in Absence of Changes**$5,742$3,906$3,406$20,166$16,084$13,894$42,808$35,603$32,489-$2,155
22
Relief as share of tax paid (%)25%25%14%12%15%5%5%7%3%-23%
23
24
Note: The lower-earning spouse is receiving the Universal Child Benefit, which is taxable. It is assumed that the two-earner families and single parents are constrained by the current Child Care Expense Deduction limits and are able to benefit from the full enhancements to them for all children. It is assumed that families fully benefit from the enhancements to the Children’s Fitness Tax Credit. The relief presented under the Family Tax Cut accounts for the small interaction effects between this credit, the new Universal Child Benefit and the enhancement to the Child Care Expense Deduction.
25
* Provincial taxes would also have to be paid on the new UCB.
26
** The calculation assumes no other deductions that would reduce taxable income (other than the CCED). It also assumed that the family claims the Basic Personal Amount (and the Spousal Amount and Eligible Dependent Amount when applicable), the Canada Pension Plan credit, the Employment Insurance credit, the Canada Employment Credit, the Child Tax Credit and the Children’s Fitness Tax Credit.
27
28
Illustrative Scenarios for the Family Tax Relief and Benefit Package in 2015
29
(Families with Two Children – one child under 6 and one child between 6 and 16)
30
Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit):  Family Income (before Universal Child Benefit):  $30,000Family Income (before Universal Child Benefit):  $50,000
31
$60,000 $120,000 $200,000
32
One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple Two-earner couple Single Parent Single Parent
33
(80%/20%)(60%/40%)
34
Spouse 1: $60,000  Spouse 2: $0Spouse 1: Spouse 1: $36,000 Spouse 2: $24,000Spouse 1: $120,000 Spouse 2: Spouse 1: Spouse 1: Spouse 1: $200,000 Spouse 1: $160,000 Spouse 1: $120,000 $30,000 $50,000
35
$48,000 $0 $96,000 $72,000 Spouse 2: $0Spouse 2: $40,000Spouse 2:
36
Spouse 2: Spouse 2: Spouse 2: $80,000
37
$12,000 $24,000 $48,000
38
New Universal Child Benefit ($60/month)$1,440$1,440$1,440$1,440$1,440$1,440$1,440$1,440$1,440$1,440$1,440
39
   Minus: $216$216$216$216$216$216$216$216$317$216$216
40
   Federal tax*
41
   Repeal of the Child $688$688$688$688$688$688$688$688$688-$688
42
   Tax Credit
43
Total$536$536$536$536$536$536$536$536$435$1,224$536
44
A $1,000 increase in the maximum amounts that can be claimed under the Child Care Expense Deduction--$300-$300$300-$300$440-$300
45
Children’s Fitness Tax Credit Enhancement$150$150$150$150$150$150$150$150$150$300$150
46
Family Tax Cut$1,071$500$45$2,000$2,000$494$2,000$2,000$790--
47
Total Relief/Benefits$1,757$1,186$1,031$2,686$2,986$1,480$2,686$2,986$1,815$1,524$986
48
Federal Tax Paid in Absence of Changes**$5,323$3,337$2,387$19,747$15,065$12,875$42,389$34,584$31,190- $1,136
49
50
Relief as share of federal tax paid (%)33%36%43%14%20%11%6%9%6%-87%
51
52
Note: The lower-earning spouse is receiving the Universal Child Benefit, which is taxable. It is assumed that the two-earner families and single parents are constrained by the current Child Care Expense Deduction limits and are able to benefit from the full enhancements to them for all children. It is assumed that families fully benefit from the enhancements to the Children’s Fitness Tax Credit. The relief presented under the Family Tax Cut accounts for the small interaction effects between this credit, the new Universal Child Benefit and the enhancement to the Child Care Expense Deduction.
53
* Provincial taxes would also have to be paid on the new UCB.
54
** The calculation assumes no other deductions that would reduce taxable income (other than the CCED). It also assumed that the family claims the Basic Personal Amount (and the Spousal Amount and Eligible Dependent Amount when applicable), the Canada Pension Plan credit, the Employment Insurance credit, the Canada Employment Credit, the Child Tax Credit and the Children’s Fitness Tax Credit.
55
56
Illustrative Scenarios for the Family Tax Relief and Benefit Package in 2015
57
(Families with Three Children – two children under 6 and one child between 6 and 16)
58
Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit):  Family Income (before Universal Child Benefit):  $30,000Family Income (before Universal Child Benefit):  $50,000
59
$60,000 $120,000 $200,000
60
One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple Two-earner couple Single Parent Single Parent
61
(80%/20%)(60%/40%)
62
Spouse 1: $60,000  Spouse 2: $0Spouse 1: Spouse 1: $36,000 Spouse 2: $24,000Spouse 1: $120,000 Spouse 2: Spouse 1: Spouse 1: Spouse 1: $200,000 Spouse 1: $160,000 Spouse 1: $120,000 $30,000 $50,000
63
$48,000 $0 $96,000 $72,000 Spouse 2: $0Spouse 2: $40,000Spouse 2:
64
Spouse 2: Spouse 2: Spouse 2: $80,000
65
$12,000 $24,000 $48,000
66
New Universal Child Benefit ($60/month)$2,160$2,160$2,160$2,160$2,160$2,160$2,160$2,160$2,160$2,160$2,160
67
Minus: $324$324$324$324$324$324$324$324$475$324$324
68
   Federal tax*
69
   Repeal of the Child $1,032$1,032$1,032$1,032$1,032$1,032$1,032$1,032$1,032-$978
70
   Tax Credit
71
Total$804$804$804$804$804$804$804$804$653$1,836$858
72
A $1,000 increase in the maximum amounts that can be claimed under the Child Care Expense Deduction-----$450-$450$660-$450
73
Children’s Fitness Tax Credit Enhancement$225$225$225$225$225$225$225$225$225$450$225
74
Family Tax Cut$1,071$500$207$2,000$2,000$920$2,000$2,000$1,034--
75
Total Relief/Benefits$2,100$1,529$1,236$3,029$3,029$2,399$3,029$3,479$2,572$2,286$1,533
76
Tax Paid in Absence of Changes**$5,084$3,098$1,790$19,508$14,468$11,586$42,150$33,295$29,495--
77
Relief as share of federal tax paid (%)41%49%69%16%21%21%7%10%9%--
78
79
Note: The lower-earning spouse is receiving the Universal Child Benefit, which is taxable. It is assumed that the two-earner families and single parents are constrained by the current Child Care Expense Deduction limits and are able to benefit from the full enhancements to them for all children. It is assumed that families fully benefit from the enhancements to the Children’s Fitness Tax Credit. The relief presented under the Family Tax Cut accounts for the small interaction effects between this credit, the new Universal Child Benefit and the enhancement to the Child Care Expense Deduction.
80
* Provincial taxes would also have to be paid on the new UCB.
81
** The calculation assumes no other deductions that would reduce taxable income (other than the CCED). It also assumed that the family claims the Basic Personal Amount (and the Spousal Amount and Eligible Dependent Amount when applicable), the Canada Pension Plan credit, the Employment Insurance credit, the Canada Employment Credit, the Child Tax Credit and the Children’s Fitness Tax Credit.
82
83
Illustrative Scenarios for the Family Tax Relief and Benefit Package in 2015
84
(Families with Four Children – two children under 6 and two children between 6 and 16)
85
Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit): Family Income (before Universal Child Benefit):  Family Income (before Universal Child Benefit):  $30,000Family Income (before Universal Child Benefit):  $50,000
86
$60,000 $120,000 $200,000
87
One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple (80%/20%)Two-earner couple (60%/40%)One-earner coupleTwo-earner couple Two-earner couple Single Parent Single Parent
88
(80%/20%)(60%/40%)
89
Spouse 1: $60,000  Spouse 2: $0Spouse 1: Spouse 1: $36,000 Spouse 2: $24,000Spouse 1: $120,000 Spouse 2: Spouse 1: Spouse 1: Spouse 1: $200,000 Spouse 1: $160,000 Spouse 1: $120,000 $30,000 $50,000
90
$48,000 $0 $96,000 $72,000 Spouse 2: $0Spouse 2: $40,000Spouse 2:
91
Spouse 2: Spouse 2: Spouse 2: $80,000
92
$12,000 $24,000 $48,000
93
New Universal Child Benefit ($60/month)$2,880$2,880$2,880$2,880$2,880$2,880$2,880$2,880$2,880$2,880$2,880
94
   Minus:   $432$432$432$432$432$432$432$432$634$432$432
95
   Federal tax*
96
   Repeal of the Child $1,376$1,376$1,376$1,376$1,376$1,376$1,376$1,376$1,376-$336
97
   Tax Credit
98
Total$1,072$1,072$1,072$1,072$1,072$1,072$1,072$1,072$870$2,448$2,112
99
A $1,000 increase in the maximum amounts that can be claimed under the Child Care Expense Deduction-----$600-$600$880-$336
100
Children’s Fitness Tax Credit Enhancement$300$300$300$300$300$300$300$300$300$600$300