Canada Child Tax Benefit (CCTB)

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Canada Child Tax Benefit(CCTB)
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What is CCTB?

• CCTB is a tax-free monthly payment made to
  eligible families to help them with the cost of
  raising children under age 18.

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What are the objectives of CCTB?

• To reduce child poverty
• To promote attachment to the workforce
• To provide harmonization of programs and avoid
  duplication

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Who is eligible for CCTB?

• You must be the person who is primarily
• responsible for the care and upbringing of a
  
• child under the age of 18

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How much does a family receive?

• Basic benefit 1283 per child under 18
• Plus 90 for a third and each additional child
• Benefit Reduction if family net income gt
  37,178
• One-child reduction is 2 of the amount of
  family net income that is gt 37,178
• Two or more children reduction is 4
• Payment amounts

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Is CCTB achieving its objectives?

• Changes in key trends indicate some success
• More low-income families are earning money from
  employment
• Decline in number of children in families living
  on low income

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Is CCTB achieving its objectives?Continued .

• One-earner families vs. single-parent and
  two-earner families
• One-earner families, who deserve more CCTB than
  single-parent and two-earner families are indeed
  the ones who receive the most CCTB

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Is CCTB achieving its objectives?Continued .

• Benefits have increased over time
• The 2004 CCTB had highest average benefits

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How does CCTB affect family decision making?

• Depends on family type single parent vs. two
  parent, traditional views or not
• Cost Benefit Analysis to decide if second
  potential wage earner in a one earner family
  should work outside the home

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What are the criticisms of the CCTB?

• CCTB violates horizontal equity...

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What are the criticisms of the CCTB?Continued.

• Negative impacts on women...

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THE END

• By Anam Kidwai, Sumita Kanga,
• Ridhi Kukreja and Safia Ahmed