Personal Finance

ON government increasing daycare rebates

  • Last Updated:
  • Apr 13th, 2019 10:29 am
53 replies
[OP]
Sr. Member
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Jan 15, 2017
650 posts
322 upvotes
It can’t really work as described.

With the exception of QC, provinces have to use the federal definition of income, which currently includes a deduction for daycare.

Ontario can’t decide on its own to remove daycare as a deduction.
Deal Addict
Dec 16, 2005
4711 posts
2453 upvotes
First I get screwed out of my CCB by the * in Ottawa and now Im screwed out of this too?

This blows.
Last edited by MrDisco on Apr 9th, 2019 12:25 am, edited 1 time in total.
Reason: Rude
Deal Expert
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Oct 26, 2003
31751 posts
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Winnipeg
I don't get it, how does this program unfairly benefits rich people like what it said in the article? It sounds like the poor gets more rebate? This is a refundable tax credit so even for people who pay no tax they will still get the full value back.
While the PCs indicated the rebate would be geared to income, critics have said the structure proposed would unfairly benefit upper-income households.
On another note, as someone who designs daycare, it is due to all the rules and regulations that make it extremely expensive to build and staff. So keep that in mind before people complain about how expensive daycare is. You are paying for very high standards of facility and staff. Daycare is built and staffed like a school and care home. Monthly payment for care home can range around $5000/month.
Deal Fanatic
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Nov 19, 2004
8637 posts
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Cambridge, ON
I don't get why this is a refundable tax credit. It should just be a tax credit. Why would someone get a refund if they are not working? If they aren't working (unless a student), they should be able to take care of their kid.
Deal Addict
Dec 15, 2009
1280 posts
447 upvotes
Ontario
mech9t5 wrote: First I get screwed out of my CCB by the * in Ottawa and now Im screwed out of this too?

This blows.
It must suck to make so much money.
Last edited by MrDisco on Apr 9th, 2019 12:25 am, edited 1 time in total.
Reason: Quote was edited
Deal Expert
Aug 22, 2011
30297 posts
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Ottawa
riffr aff wrote: It must suck to make so much money.
No, it sucks to subsidize and not be qualified for anything.
[OP]
Sr. Member
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Jan 15, 2017
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322 upvotes
don242 wrote: I don't get why this is a refundable tax credit. It should just be a tax credit. Why would someone get a refund if they are not working? If they aren't working (unless a student), they should be able to take care of their kid.
I guess a spouse could be in school full-time, pay for daycare, and qualify for the rebate.
Deal Addict
Dec 16, 2005
4711 posts
2453 upvotes
riffr aff wrote: It must suck to make so much money.
The problem is, I'm in the class that gets screwed over EVERY TIME. I don't make enough money to be in the 1% and have loop holes and shell companies, etc. to minimize my taxes. I don't make little enough to qualify for ANYTHING.

Yes, it sucks hard.

Income tax is not even fair. It should be based on HOUSEHOLD income. But it's not. If I make $200k, I pay around 74k in taxes with $126k left over and qualify for nothing.

A husband and wife team making 85k each ends up with the SAME $126k after tax!!! AND they qualify for both CCB and this childcare benefit.

That's **** fair.
Deal Expert
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Oct 26, 2003
31751 posts
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Winnipeg
mech9t5 wrote: The problem is, I'm in the class that gets screwed over EVERY TIME. I don't make enough money to be in the 1% and have loop holes and shell companies, etc. to minimize my taxes. I don't make little enough to qualify for ANYTHING.

Yes, it sucks hard.

Income tax is not even fair. It should be based on HOUSEHOLD income. But it's not. If I make $200k, I pay around 74k in taxes with $126k left over and qualify for nothing.

A husband and wife team making 85k each ends up with the SAME $126k after tax!!! AND they qualify for both CCB and this childcare benefit.

That's **** fair.
I thought that was what income splitting was for? Did that not get passed? I do agree that the tax base is mostly on the middle class.
Member
Jul 25, 2008
393 posts
268 upvotes
ottawa
divx wrote: I thought that was what income splitting was for? Did that not get passed? I do agree that the tax base is mostly on the middle class.
People make 200k a year and think they're middle class?
Deal Addict
Dec 16, 2005
4711 posts
2453 upvotes
divx wrote: I thought that was what income splitting was for? Did that not get passed? I do agree that the tax base is mostly on the middle class.
There was partial income splitting was put in place by Harper but the * got rid of it as soon as he got into office
[OP]
Sr. Member
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Jan 15, 2017
650 posts
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mech9t5 wrote: There was partial income splitting was put in place by Harper but the * got rid of it as soon as he got into office
Yup, very first budget. Couldn't wait to do it.
Last edited by MrDisco on Apr 9th, 2019 12:29 am, edited 1 time in total.
Reason: Quote edited
Sr. Member
Jul 8, 2013
870 posts
682 upvotes
Red Deer, AB
danishh wrote: People make 200k a year and think they're middle class?
Two professional couple with a couple of kids and a mortgage? Yeah, $200K isn't a lot. Car payments, student loans, RESP, mortgage, daycare, etc. you're lucky to have enough remaining to stuff your TFSA/RRSP.

True 1% have shell companies where they get around paying taxes. Regular salaried folks? There is no way to legally reduce your taxes payable other than RRSP.
TFSA: XAW | RRSP: VEQT + VAB | Non-Reg: XIC

It's really that simple.

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