The Liberal government is adding an additional $300 dollars to the Canada Child Benefit as a way to help offset extra costs brought on by the COVID-19 pandemic, according to CBC.
In addition to the extra money, parents who previously didn't qualify for the benefit because their income was above what was required will now will be eligible to receive the benefit, although it won't be the full amount.
The 3.7 million families who currently collect the benefit will receive the additional $300 payment in May regardless of how much they normally receive, as a one time payment, said a government official.
"No matter who you are or where you live, we're here to support you," said Trudeau during his daily briefing on Wednesday. "This is money to help you get through a very tough time."
For parents who earn above the income threshold, they will receive a prorated amount for the month of May as well, according to officials. That will apply to the some 50,000 families who currently don't qualify for the benefit.
The amounts paid out will be determined based upon your filed 2018 tax return and if not by yours then by your spouse or common-law partner.
Normally an Ontario household that made a net income of $215,000 with two children to support would not be eligible for the benefit where as a family that made a net income of $212,000 of a similar size, would. Now the families that were just above that net income amount will receive a payment for the month of May.
The program is based on income, therefore Canadians on the more wealthy end of the spectrum won't receive any additional funds.
The program aims to help bolster a hurting economy by putting money back into the pockets of Canadians who have families to support. In total, the program will provide $2 billion in financial support for those who qualify which will hopefully balance the lack of consumer spending since the pandemic hit.
On the other hand, the benefit will also add a large amount to an already growing federal deficit. The 2020-2021 deficit is predicted to be roughly around $250 billion, as estimated by the parliamentary budget officer. The officer also predicts the federal debt may reach $1 trillion by the end of 2020. The federal debt was about $700 billion prior to the pandemic.
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