Canadian Election 2015:
Income security policy
commitments and claims of the
four main political parties
Michael J. Prince
October 6, 2015
Ambrosia Centre
Victoria
Focus on income security
• Social policy:
–
–
–
–
–
–
–
–
education
employment programs
health services
housing
human rights
income security
immigration
social services (e.g. child care, family services)
• Income security – public provision of financial assistance to specific groups
of people and relationships and for certain activities, needs or risks
• Delivered through various mechanisms: means- or needs testing; incometested; loans; social insurance; savings plans; tax measures (nonrefundable or refundable); universal grants
2
Conservative Party
• 2015 Federal budget measures on income support:
– Increased payments to Universal Child Care Benefit for children under age
6 and new benefit for those aged 6-17 years old
– New and expanded benefits for veterans and their families
– Employment Insurance (EI) Compassionate Care benefit extended from 6
weeks to 6 months
– Increased contribution limit of Tax Free Savings Accounts (TFSAs)
– New Home Accessibility Tax Credit for seniors or people with disabilities
– Reduce EI premiums by 2017 from current $1.88 per $100 earnings to
$1.49
– Registered Retirement Income Fund (RRIF) enhancements
– Children’s Fitness Tax Credit doubled
– Child Care Expense Deduction limit raised
– Income splitting for families with children
3
Conservative Party
• 2015 Campaign promises:
– Improve Earnings Loss Benefit for veterans with service-related disabilities
or injuries
– Increase and make refundable Adoption Expense Tax Credit
– New tax break on membership fees to registered service charities
– Expand federal loan program to new Canadians completing foreign
credential recognition process
– Increase Canada Disability Savings Grant
– Raise federal contribution in Canada Education Savings Grants when
families invest in Registered Education Savings Plans
– New tax credit for single and widowed seniors
– Increase amount first-time home buyers can withdraw tax free from RRSPs
– Increase apprenticeship job creation tax credit and extend to third and
fourth years of eligible training
4
Green Party
•
Post-secondary education:
– By 2020 abolish tuitions fees for post-secondary education and skills training for Canadians
– Eliminate existing and future student federal debt above $10,000
– Abolish charging interest on new student loans
– Increase available funding for bursaries
– Cancel student tax credit
•
Supports expansion of Canada Pension Plan as most reliable pension plan
•
•
A federal minimum wage of $15 an hour
Equal pay for equal work: fight to end gender-based wage discrimination
•
Leave alone the Universal Child Care Benefit
•
Carbon Fee and Dividend system will provide a cheque to every Canadian over 18 and “help to those who need it most”
•
Tax expenditures and other tax measures:
– Eliminate Income Splitting for all but pensioners
– Eliminate tax credits for children’s fitness and art
– Oppose TFSA limit increase from $5,500 to $10,000
•
Working with provincial governments and their programs and federal programs, phase-in a national Guaranteed Livable
Income “to ensure no Canadian lives in poverty”
5
Liberal Party
•
Family benefits :
Introduce a new Canada Child Benefit and “cancel child benefit cheques for millionaires”
– Replace the Universal Child Care Benefit, Canada Child Tax Benefit, and National Child Benefit
Supplement
– A larger income-tested, tax-free, monthly child benefit
•
Employment Insurance:
– Reduce waiting period to one week from two
– Reduce EI premiums from $1.88 to $1.65
– More flexible parental leave over an 18 month period
– Wider eligibility to compassionate care benefit
– Waive employers’ premiums for a year on any net hire of a full-time, employee aged 18 to 24
– End the higher 910-hour eligibility rule for new workers and re-entrants to enhance access benefits
and training supports
•
Veterans:
– Expand Permanent Impairment Allowance
– Increase Earnings Loss Benefit
– New Veterans Education Benefit
– Restore lifelong pensions for injured veterans
– Increase the veterans’ survivor pension amount
6
Liberal Party
•
Elderly and Pension Benefits:
–
–
–
–
•
Post-secondary education:
–
–
–
•
10% increase to Guaranteed Income Supplement (GIS) for single, lower income seniors
Restore eligibility to Old Age Security (OAS) and GIS to age 65
Apply a new Seniors Price Index to OAS and GIS for cost of living of seniors
Work with provinces/territories to enhance the Canada Pension Plan
Increase student support program for Indigenous peoples
Increase Canada Student Grants by 50% for low-income full-time and part-time students
Exempt graduates from repaying loans until earning at least $25,000 a year
Tax expenditures and other tax measures:
–
–
–
–
–
–
–
Enhanced flexibility of RRSP home buyers’ plan
New refundable tax credit - Teacher and Early Childhood Educator School Supply Tax Benefit
Increase marginal tax rate on Canada’s top one percent (33 percent on individual incomes over $200,000)
Lower taxes for “the middle classes” (lower the tax rate to 20.5 percent on incomes between $44,700 and
$89,401)
Cancel TFSA limit increase (from $5,500 to 10,000)
Cancel family income splitting (not pension income splitting)
Increase tax deductions for northern residents
7
New Democratic Party
•
Post-secondary education:
– Phase out interest on federal student loans over 7 years
– 74,000 new grants for students in most financial need
•
Employment Insurance:
– Freeze EI premiums for four years
– Ease eligibility restrictions for EI benefits
•
Federal minimum wage of $15 an hour
•
Elderly and Pension Benefits:
– Raise the Guaranteed Income Supplement for low income seniors
– Cancel the planned increase in the eligibility age for OAS and GIS from 65 to 67
– First Ministers’ meeting within 6 months of taking office to discuss expansion of Canada
Pension Plan and Quebec Pension Plan
– Protect workplace pensions by ensuring retirees do not have benefits reduced by their
employers
8
New Democratic Party
•
People with Disabilities
–
–
•
Veterans:
–
–
–
–
–
•
“Work with provinces, territories, indigenous communities and disability organizations to conduct a
review of existing income support programs for persons living with disabilities in order to coordinate
benefits and increase accessibility”
Fix the broken appeal process for Canada Pension Plan disability appeals
increase survivor’s pension
increase federal allowance for funeral and burial expenses
improve the lump-sum payment for injured veterans
explore option of a federal tax credit for private employers hiring veterans
end claw-back of service pensions when members collect CPP pension or CPP Disability benefit
Tax expenditures and other tax measures:
–
–
–
Cancel the TFSA contribution limit increase by Harper government (return it to $5,500 per year)
Cancel family income splitting (but continue pension income splitting for seniors)
Allow self-employed artists to average their income
9