The Supporting New Parents Act
We, the Conservative Official Opposition, understand both the excitement of welcoming a new child to the family, but also the financial pressures Canadian parents often encounter. This is especially the case now for new parents, as it’s become more expensive to raise a family under the current Liberal government. In response to the increasing costs of raising a family, the Honourable Andrew Scheer, Leader of the Official Opposition, recently announced that we will offer tax relief to Canadian families by introducing the Supporting New Parents Act.
The arrival of a new family member is without a doubt a very important milestone for parents. However, this special time can also raise financial pressures and concerns for parents with the additional costs for the care of a newborn and the decision to take a leave from work. Therefore, excitement can quickly turn into mounting stress for a parent(s). Presently, under the current Liberal government, Canadians accessing EI maternity benefits and EI parental programs still pay federal income tax on the money they receive. This is why our leader, Andrew Scheer, announced the Supporting New Parents Act on February 01, 2018 – to remove federal income tax from benefits received under the Employment Insurance (EI) maternity and EI parental programs.
More specifically, the Supporting New Parents Act would remove federal income tax from EI maternity and EI parental benefits by providing a non-refundable tax credit for any income earned under these two programs. A non-refundable tax credit amounts to a 15 per cent tax rebate on these benefits. For example, the benefit to an average Canadian whose regular salary is $50,000 would be about $4,000. The tax credit is for EI maternity benefits and EI parental benefits. Such tax relief can have a considerable impact on the costs associated in the care of a newborn for young Canadian families by helping them keep more of their money to help raise their children, and thus alleviating some of the stress of welcoming a new child.
New parents deserve support not taxation. We also know that Prime Minister Trudeau plans to raise taxes on 2.7 million families over the next few years. This means that by 2019, more than 90 per cent of middle-class families will pay more tax than under the previous Conservative government which will place more pressure on Canadian families.
The Supporting New Parents Act introduced by the Conservative Official Opposition is another example of us standing up for hardworking Canadian families. We understand the many challenges young families face in welcoming a new child, including the increased cost of living under the current Liberal government. We want to help families with positive measures, which have a meaningful impact. Canadian families deserve this kind of strong, responsive leadership, not more taxation from a government which has been shown to be out of touch with the needs and priorities of everyday, ordinary Canadian families.