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Canada Child Tax Benefit: UpdateFebruary 1999 - revised February 17, 1999 (erratum).
The Canada Child Tax BenefitThrough the Canada Child Tax Benefit (CCTB), the federal government assists low- and middle-income families with the expenses of raising children. This approach is consistent with the role of government in promoting fairness and equity among individuals with different incomes and family circumstances. The level of CCTB benefits depends on net family income and the number of children. Revenue Canada makes benefit payments to recipients every month. About 3.2 million families receive the CCTB, covering more than 80 per cent of all children in Canada. The two main components of the CCTB are the base benefit and the National Child Benefit (NCB) supplement. The base benefit is available to families with incomes up to $67,000. The NCB supplement is an important component of the National Child Benefit system, a federal, provincial and territorial initiative designed to tackle child poverty. The NCB supplement is available to low-income families – i.e., those with incomes up to $25,921. What's new in the 1999 budget?The 1998 budget included a commitment to increase by $850 million the federal contribution to the National Child Benefit system. The 1999 budget follows up on that commitment by making specific proposals regarding the allocation of this additional funding. This year's budget also adds $300 million to the benefits provided to modest- and middle-income families under the CCTB base benefit. Taken together with the $850 million announced in the 1997 budget, these measures will increase the CCTB by $2 billion per year. This will bring annual federal support for families under the CCTB to almost $7 billion by July 2000. Changes announced in the 1999 budget affect both the supplement and the base benefit:
How do families benefit from these enrichments?Enrichments to the NCB supplement will result in increased benefits for 1.4 million low-income families. Thanks to these enrichments, a low-income family with two children will receive up to 48 per cent more in 2000 than in 1996.
Increases in maximum CCTB benefits for low-income two-child families
Two million modest- and middle-income families will also receive higher base benefits. In addition, a portion of the base benefit will be extended to about 100,000 families that currently do not receive it.
Summary table: maximum CCTB benefits
How is the CCTB distributed?
Over three-quarters of all CCTB benefits will go to one-earner families and single-parent families. CCTB recipientsPercentage of total benefits by family type Percentage of total benefits by family type
The National Child Benefit SystemWorking together to support families and fight child povertyIn 1996, the Prime Minister and Premiers made tackling child poverty a shared priority. The federal, provincial and territorial governments developed the National Child Benefit to support low-income families and reduce child poverty. Traditionally, families that moved from welfare to work had to give up a range of income supports and services for their children because such supports were tied to the welfare system. For many low-income families, the prospect of losing benefits for their children has been a substantial barrier to employment and has limited their opportunity to earn income. The July 1998 implementation of the National Child Benefit system was the first step towards tackling these issues. Both levels of government have implemented major co-ordinated initiatives to make the NCB a reality:
The combination of new federal, provincial and territorial supports is bringing down barriers to employment and improving the lives of many families. Starting in July 1999, the second phase of the NCB will be implemented along the lines described above. This additional $850 million in funding for the CCTB will enable provinces and territories to further enrich their programs and services. Toll-free information lineRevenue Canada administers the CCTB. Further information about the CCTB may be obtained by calling the following numbers:
How can I get more information on the 1999 budget?Information is available on the Internet at: http://www.fin.gc.ca/. You can also obtain copies of this brochure or other budget documents from:
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