Low-income individuals and families facing high METRs would benefit from lower claw-back rates.
canada child tax benefit
The Canada Child Benefit will cost a planned $24.3 billion this year.
Ottawa eliminated several tax credits.
If families who receive CCB transfers begin to earn a higher income, their cash transfers will be reduced—a disincentive to hard work.
High marginal effective tax rates weaken the incentives for people to earn extra money.