FILE – Conservative Party Leader Andrew Scheer. (The Canadian Press)

Scheer promises EI tax credit for new parents if Conservatives form government

The government currently taxes employment insurance benefits for new parents

Conservative Leader Andrew Scheer is promising to provide a tax credit for new parents receiving federal benefits.

Scheer is reviving an idea he first unveiled in early 2018 as an incentive to encourage families to support the Conservatives in this fall’s election.

The government taxes employment insurance benefits for new parents, along with any employer top-up, while on maternity or parental leave.

Scheer is proposing a non-refundable tax credit on 15 per cent of whatever a new parent earns while they are on leave.

The parliamentary budget officer calculated in May 2018 that Scheer’s plan would cost the federal treasury about $600 million in its first year.

It would also cost the government $261 million in future years, since the plan would let families carry over any unused credits.

ALSO READ: Scheer repeats call on RCMP to investigate Trudeau’s actions in SNC affair

The Canadian Press


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