The Refundable Child Tax Credit:
What it is...how it works

Publisher:  The Office of the National Council of Welfare, Ottawa, Canada
Year Published:  1978  
Pages:  10pp  
Resource Type:  Article
Cx Number:  CX797

This report outlines what may be the federal government's most far reaching restructuring of its programmes of financial support for families with children. The Refundable Child Tax Credit Programme is designed to offer full benefits to the poor - those who are most in need. presently, families with incomes below the poverty line are excluded from the benefits of tax cuts simply because they are too poor to pay income tax.

Abstract:  This report outlines what may be the federal government's most far reaching restructuring of its programmes of financial support for families with children. The Refundable Child Tax Credit Programme is designed to offer full benefits to the poor - those who are most in need. presently, families with incomes below the poverty line are excluded from the benefits of tax cuts simply because they are too poor to pay income tax.
This programme reverses the schedule of benefits now created by the present family allowance, tax exemption and tax reduction. The greatest benefits will now be received by those families with incomes below the national average , while benefits paid to those with incomes above the average will gradually be reduced as the need diminishes, providing a greater equity within the tax system. Perhaps the most significant benefit of this new structure is that it will provide a base upon which the government can further build programmes that assist the on-going fight to eliminate poverty.
This background paper goes on to summarise the general concept of the new Child Tax Credit and outlines Some of the effects for families at various income levels.




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