Ottawa, ON – Andrew Scheer, Leader of Canada’s Conservatives has tabled the Supporting New Parents Act which will offer tax relief to young families.
“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,” said Scheer.
Joined by local families at a roundtable event in Ottawa last week, Scheer emphasized the importance of providing a little more relief for parents welcoming a new child to the family.
“Welcoming a child into a young family is an incredibly special moment for so many parents,” said Scheer. “Canada’s Conservatives understand that the government shouldn’t be taxing the time parents take to be with their children during those important early years.”
Currently, Canadians 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 will create a federal non-refundable income tax credit for any income earned under these programs. Residents of Quebec who receive benefits under the Quebec Parental Insurance Plan would be eligible for a tax credit of an equivalent amount.
“A Canadian who before going on EI earned $50,000 per year would be eligible for a tax credit of around $4,000,” said Scheer. “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.”
This announcement is among the first steps in outlining a positive Conservative vision for Canadians.
“Life has gotten more expensive for young families under Justin Trudeau, and Canada’s Conservatives are bringing forward the ideas that address the real challenges families face,” said Scheer.