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Canada Child Benefits Cancellation Could Lift 174,000 Kids Out Of Poverty: Group
Ottawa should eliminate child tax benefits and credits to most Canadian parents and instead direct the money to the lowest-income families, an anti-poverty coalition recommends in a report released Wednesday.
If the child tax benefit, the child fitness tax credit and the universal child care benefit were nixed and the money went towards a child benefit supplement for families making less than $25,000 a year, about 174,000 kids would be lifted out of poverty, Campaign 2000 says.
"The concept was very much that in order to make an impact on poverty a little more progressivity has to be introduced into the taxation system," said Sid Frankel, a University of Manitoba social work associate professor and Campaign 2000 committee member.
The current child benefit supplement maximum is $3,485. If the federal government eliminated several tax credits for families above the poverty line and if Ottawa also kicked in another $174 million per year, the maximum could be increased to $5,400, the group says.
"For many families it would mean higher quality food," Frankel said.