Wednesday, May 31, 2006

Nicely played

While the provinces make their case for child care funding, Olivia Chow highlights the taxbacks within the Cons' "child care plan":
At a press conference in Ottawa today, NDP Children and Youth Critic Olivia Chow (Trinity – Spadina), unveiled a giant cheque for $224 million, made out to Prime Minister Stephen Harper. This cheque - presented as a gift in the name of parents and kids who need child care - represents the government's windfall federal tax grab from working families who receive the so-called Universal Child Care Benefit, according to the respected Caledon Institute.

"A lot of families, who have already been left hanging on waiting lists for child care spaces, are in for another rude awakening next year when they see their tax bill,” said Chow. “They’ll be sending big cheques back to Ottawa, the overall total will mean $224 million in federal income tax on the Benefit. And the hardest hit Canadians will be single parents and working families, while the lowest taxes may be paid by the stay-at-home spouses in wealthier families.”

Chow says that rather than giving with one hand and taking with the other, the government should secure child care for those who need it, and transfer this $224 million tax grab to the provinces to create child care spaces.
Unfortunately, the limited request made by the provinces so far may make it difficult to secure an amount toward actual child care comparable to that implied by the NDP's stand. But then, the provinces' suggestion may also start to sound good to Diane Finley when compared even to the amount taxed back under the Cons' plan. It only remains to be seen whether Chow's position receives enough attention and support to force the Cons' hand.

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