by Morinville News Staff
Conservative Leader Andrew Scheer announced Thursday his party would offer tax relief to young families by introducing the Supporting New Parents Act, which would remove federal income tax from benefits received under the EI maternity and EI parental programs.
“This important bill will give Canadian parents – who make so many sacrifices for their new children, including a leave from work – a break by eliminating the federal tax on parental leave benefits,” Scheer said.
Scheer said welcoming a child into a young family is an incredibly special moment for so many parents, something his party understands. The party leader said he also understands government shouldn’t be taxing the time parents take to be with their children during those important early years.
Canadians currently taking advantage of EI maternity benefits and EI parental programs still pay federal income tax on the money they receive.
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 the two programs. A non-refundable tax credit amounts to a 15% tax rebate on these benefits. The benefit to an average Canadian whose regular salary is $50,000 would be about $4,000.
Under EI maternity, the birth mother can receive benefits for up to 15 weeks. Under EI parental, new parents – either parent or a combination of both – can receive additional benefits for up to 35 weeks. Under the recent expansion to EI, parental benefits, parents can take benefits up to 61 weeks at a reduced wage replacement of 33%.
“A Canadian who before going on EI earned $50,000 per year would be eligible for a tax credit of around $4,000,” Scheer said. “For any young family, this important tax relief could make a huge difference for young parents in the costs of raising an infant. This is so important at a time when the cost of living continues to rise for parents under this Liberal government.”
The party says Thursday’s announcement is one of their first steps in outlining a positive Conservative vision for Canadians.