Mike Bossio, Member of Parliament for Hastings—Lennox and Addington applauded the government for the Fall Fiscal Update, which showed strong economic growth and job creation.
One key highlight of the fiscal update is an expansion of the popular Canada Child Benefit.
“Our signature tax-free Canada Child Benefit has lifted over 300,000 kids out of poverty,” said Bossio. “In a riding like ours with higher-than-average child poverty rates, this has a huge impact. It has put more money in the pockets of those who need it most, and they have been able to spend it to put food on the table, clothes on their kids’ backs, books, sports and arts programs—you name it—which in turn has stimulated our economy.”
The Canadian economy has seen its fastest growth in 10 years, with fiscally-responsible investments being made under a low debt-to-GDP ratio. Over 450,000 jobs have been created since the last election, most of them full-time. The fiscal update also pointed to this strong growth—the highest in the G7—shrinking the deficit.
“I’m very proud that yesterday we announced that we are expanding the Canada Child Benefit to keep up with the rising cost of living, starting in July 2018,” said Bossio.
For example, a single parent of two children making $35,000 will get $560 more next year, tax free, to support her or his child.
A second highlight of the update is an enhancement of the Working Income Tax Benefit, which will help put more money in the pockets of low-income workers.
“People with a lower income work hard, and deserve the tools they need to support themselves and their families,” said Bossio. “Enhancing the Working Income Tax Benefit is another key item in our goal to help the middle class and those working hard to join it.”
The Working Income Tax Benefit (WTIB) is a refundable tax credit that cuts taxes for eligible people already in the workforce and encourages others to get a job. The Fiscal Update proposes to enhance it by an additional $500 million per year starting in 2019. This is in addition to the $250 million annual increase that will come into effect as part of the government’s enhancement of the Canada Pension Plan. Together, these two enhancements will boost the total amount the government spends on the WITB by about 65% in 2019, increasing benefits and expanding the number of Canadians who qualify.
“Our plan to invest in our people and in our communities is working,” said Bill Morneau, Minister of Finance. “With lower taxes on small business, more support for parents, and more money in the pockets of low-income workers, we are working to grow the economy in a way that benefits all Canadians. And that is exactly what Canadians sent us here to do.”