Exactly how generous was the conservative government’s recent-touted Christmas-in-July gift to parents, a lump-sum payout of about $3 billion? This UCCB cheque may be costing you more than you know.[sam id=”15″ codes=”true”]The short version goes like this:
- This pay-out replaces an existing child-tax credit that is worth about half of your recent Christmas gift
- The money you receive now is taxable (tax credits are not) so depending on your tax bracket and where you live, you will pay back anywhere from one-third to (the other) half.
- Doing the math, you may come out ahead anywhere from $20 to $7.50 a month, according to a CBC analysis (referenced below).
As per the CBC analysis in which the following video appears, “Overall, Canadian parents should expect to keep less than one-third of the nominal amount of the UCCB, and in many cases less than a quarter.”
But will this $3 billion payout stimulate the economy just in time for October’s election? Again, from the analysis: “Typically, wealthier people are more likely to save the money or use it to pay down existing debt. People with lower incomes are more likely to use the money now to meet existing needs, thereby stimulating the economy.”
Referenced in the above clip is theFunnyAccountant.com (who, it appears, is equally cynical of all political parties), who was recently interviewed by The Barry Morgan Show. Below is that interview.
If you are not a parent of a child under 18, how do you feel about your tax dollars being spent on this pre-election partisan-specific $3 billion payout?
– Britt Santowski, SPN
- Original CBC article: ANALYSIS 3 things to know about the UCCB payments’ impact
- The Funny Account’s article: It’s UCCB Payday!!…Now How Much Are Your Child Benefits REALLY Worth!?