One local advocate for low-income residents says the latest news on the nation's economy is encouraging.
The Trudeau government issued its latest economic update Tuesday. It indicates that Canada's economy, currently the strongest among G7 nations, is growing fast enough to generate higher than anticipated revenue. With that revenue, the federal Liberals are putting it toward increases in the Canada Child Benefit and the Working Income Tax Benefit.
Adam Vasey, director of outreach, advocacy and education at the Downtown Mission in Windsor, calls this news very encouraging.
"Both of those are initiatives that a lot of anti-poverty advocates have been calling for for awhile now, because both of those programs have been shown to be working," says Vasey, who also teaches at the University of Windsor Law School.
Most families in Canada receive the Canada Child Benefit, which sends monthly cheques to help support young children. The government will index the benefit to inflation beginning in July 2018, two years ahead of schedule. This will cost the government an additional $5.6-billion through 2023.
Vasey says this ground-breaking program is kicked up to the next level due to this development.
"It was a game-changer for sure when it was introduced," says Vasey. "It provides significant sources of income for families and it's a huge tool in our poverty-reduction toolbox, if you will."
While the child benefit affects most Canadians, the Working Income Tax Benefit is geared toward specific family makeups, with thresholds in household income and benchmarks for marital status and dependents. The benefit is a refundable tax credit for those who are working but still struggle financially. The government has pledged adding an additional half-billion dollars to the program starting in 2019, though more specifics for 2018 have not been disclosed. The threshold income in most provinces for families with children is $28,576 this year.
Vasey says the income tax benefit is something everyone can agree on regardless of political affiliation.
"It's one of those benefits that all parties have said, they're all in favour of," says Vasey. "It's just a matter of political will, I think, in making the investment. Certainly any increase in the Working Income Tax Benefit will be welcome news."
Vasey says while these programs are doing a lot for those who are struggling financially, he says the government still needs to do more to combat homelessness and poverty on the local level.
For more information on these and other government benefit programs, click here.
