Childcare: Conservatives would opt for a refundable tax credit

The Conservatives promise to replace the tax deduction for childcare expenses that parents can currently claim with a refundable tax credit.

The party says this tax measure would be more beneficial for low-income Canadians, allowing them to receive a refund of up to $ 6,000 per year.

Parents could deduct up to $ 8,000 of their eligible annual expenses per child under the age of seven and up to $ 5,000 per child between the ages of seven and 15.

Lower-income Canadian families would see up to 75% of these expenses covered by Ottawa; this percentage would decrease as family income increases, to a floor rate of 26%.

The Conservatives say that since the tax credit is refundable, low-income families would get the full refund even if it reduced their tax payable below zero.

The party says the current child care expense deduction benefits the wealthy more, because the most earning parents get the highest tax deductions.

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