As Canada’s election deadline approaches, Conservative Leader Erin O’Toole detailed his promise to replace the tax deduction parents can claim for childcare expenses with a refundable tax credit during a campaign stop in Russell, Ont.
The party says its proposal would benefit lower-income Canadians the most by allowing them to receive up to $6,000 of their annual child-care expenses reimbursed.
READ MORE: Liberal, Conservative child-care plans ‘disingenuous,’ one critic says. Here’s why
Parents would be able to claim up to $8,000 of eligible annual expenses per child under seven years old and up to $5,000 per child between the ages of seven and 15.
Canada’s lowest-income families would have up to 75 per cent of those costs covered, and as incomes rise, the percentage would drop to a minimum of 26 per cent.
The Tories say because the tax credit is refundable, lower-income families would get the full amount reimbursed even if it pushes their tax bill below zero.
The party says the current child-care expense deduction benefits the rich because parents who earn the most get the highest deductions.
© 2021 The Canadian Press