Red Deer-Lacombe MP Blaine Calkins is supporting Conservative leader Andrew Scheer’s promise to provide a tax credit for new parents receiving federal benefits.
“A new Conservative government would remove federal income tax from EI maternity and EI parental benefits by providing a non-refundable tax credit of 15 per cent for any income earned under these two programs. For a Canadian making $50,000 a year, that’s a savings of about $4,000,” Calkins said in a release Tuesday.
Scheer is reviving the idea he first unveiled in early 2018 as an incentive to encourage families to support the Conservatives in the upcoming election in October.
The government taxes employment insurance benefits for new parents, along with any employer top-up, while on maternity or parental leave.
“When you decide to start a family, it’s an extremely exciting, but often stressful time. Whether it’s your first child or third, there is an awful lot to do and the expenses can really start to pile up,” said Calkins.
“This tax-credit will help alleviate some of those financial burdens and give parents some peace of mind during one of the most exciting times in their lives.”
The parliamentary budget officer calculated in May 2018 that Scheer’s plan would cost the federal treasury about $600 million in its first year.
It would also cost the government $261 million in future years, since the plan would let families carry over any unused credits.
“We understand that Canadians work hard for their money, and they know best when and where to spend it. Conservatives have a plan for you and your family to get ahead: lowering your taxes, living within our means, and putting more money in your pockets,” said Calkins.
–With files from The Canadian Press