Canadian Public Policy · 1996 · 11 citations · 1 references
Public AffairsEconomicsSocial PolicyPublic EconomicsTaxationWelfare PolicyChild BenefitsFamily BenefitsTax ReformWelfare EconomicsWelfare ReformWork IncentivesEarned Income SupplementsFamily Benefit IncentivesFamily Benefit SystemsLabor Force Participation AnalysisLabour Market EffectsTax-benefit SystemsUniversal Child BenefitsUniversalism In Child Benefits
The paper evaluates the 1993 child tax benefit reforms using the Social Policy Simulation Model and Database (SPSD/M) developed by Statistics Canada. The paper argues that few of the benefits of the reform went to the poorest families. Instead, because of the interaction of the tax and benefit system, the greatest net beneficiaries were lower-middle income families in the $40,000 to $50,000 income range. The paper also evaluates the effectiveness of the earned income supplement in increasing incentives to participate in the labour market. It argues that, because of tax back provisions, the earned income supplement results, on average, in an increase in marginal tax rates for Canadian families. Moreover, even when the earned income supplement decreases marginal tax rates, it will have only the most minimal effects on labour force participation.
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