Sopuck Commends Government’s New Tax Reductions for Canadians

Onanole, MB – Robert Sopuck, Member of Parliament for Dauphin-Swan River-Marquette, today commended Prime Minister Stephen Harper and Finance Minister Joe Oliver for the Conservative Government’s latest tax cuts for Canadian families.

“Our Government is focused on helping hard-working Canadian families make ends meet, by making important priorities like child care and after-school sports more affordable,” Sopuck said. “Under this plan, every family with children will have more money in their pockets, to spend on their priorities as a family.”

The proposed new measures include:
• The Family Tax Cut, a federal tax credit that will allow a higher-income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. The credit will provide tax relief – capped at $2,000 – for couples with children under the age of 18, effective for the 2014 tax year. Income splitting is helping seniors across the country, which is why the Government is now proposing similar relief for families.
• Increasing the Universal Child Care Benefit (UCCB) for children under age six. As of January 1, 2015, parents will receive a benefit of $160 per month for each child under the age of six – up from $100 per month. In a year, parents will receive up to $1,920 per child.
• Expanding the UCCB to children aged six through 17. As of January 1, 2015, under the expanded UCCB, parents will receive a benefit of $60 per month for children aged six through 17. In a year, parents will receive up to $720 per child.
• Increasing the Child Care Expense Deduction dollar limits by $1,000, effective for the 2015 tax year. The maximum amounts that can be claimed will increase to $8,000 from $7,000 for children under age seven, to $5,000 from $4,000 for children aged seven through 16, and to $11,000 from $10,000 for children who are eligible for the Disability Tax Credit.

Families can claim the Family Tax Cut in the spring of 2015 when they file their 2014 tax returns. They will begin to receive payments under the enhanced UCCB in July 2015. The July UCCB payment will include up to six months of benefits to cover the period from January through June 2015. The enhanced UCCB will replace the existing Child Tax Credit for the 2015 and subsequent taxation years.

“Over 160 taxes have been cut or eliminated since we came to office in 2006, and this latest tax cut continues our record of standing up for Canadian families by lowering their taxes,” Sopuck said. “The Liberals and New Democrats have already declared their opposition to lowering taxes for families, which is disappointing but not surprising.”

Two thirds of this latest tax reduction will benefit low- and middle-income families.

“Our Government has worked responsibly to balance our budget while keeping taxes low,” said Sopuck. “Now we are in a position to help Canadian families balance their budgets too.”

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Quick Facts
• All families with children will benefit from the new measures introduced by our Government. The average tax relief and benefits for these families will be $1,140 in 2015.
• Low and middle-income families will receive two-thirds of the overall benefits provided by the package.
• The Family Tax Cut will eliminate or significantly reduce the difference in the federal tax payable by a one-earner couple relative to a two-earner couple with a similar family income.
• Earlier this month, the Government announced its intention to double the Children’s Fitness Tax Credit and make it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.
• Canadians at all income levels are benefiting from federal tax relief measures introduced since 2006, with low and middle-income Canadians receiving proportionately greater relief.
• Previous tax-relief measures introduced by the Government since 2006 have resulted in a tax reduction of approximately $3,400 in 2014 for an average two-earner family with two children.

Sample Calculations
• Families earning less than $30,000 will receive an average benefit of $1,218.
• A single parent with two children earning $30,000 receives $1,524 per year.
• A two income family with two kids where the mother earns $48,000 and the father earns $12,000 will receive a benefit of $1,186 - 36% of their federal tax bill.
• A two earner couple making $48,000 and $12,000 with one kid will see their tax bill reduced by 25%.
• A two income family with two kids with one parent making $96,000 and the second parent making $24,000 will benefit by $3,000.
• A single parent making $50,000 with two kids will see $986 in relief and benefits.

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