Chapter 1 - Growth - Text Version

Chart 1.1 - Enhancing the Canada Workers Benefit, 2019

Chart 1.2 - CWB Enhancement for Unattached Workers, 2019

The chart shows how an unattached individual’s entitlement to the proposed Canada Workers Benefit (CWB) would depend on that individual’s earnings and net income. The CWB would provide a refundable tax credit of 26 per cent of each dollar of earned income in excess of $3,000, reaching a maximum benefit of $1,355 at earned income of $8,212. Once the individual’s net income exceeds $12,820, the benefit would be reduced at a rate of 12 per cent of each additional dollar, until the benefit is fully phased out at net income of $24,111.

The chart also illustrates how the proposed CWB compares to the benefit that would otherwise be received taking into account the enhancement to the Working Income Tax Benefit (WITB) in 2019 associated with the Canada Pension Plan enhancement. Under that design, the WITB would provide a refundable tax credit of 26 per cent of each dollar of earned income in excess of $3,000, reaching a maximum benefit of $1,192 at earned income of $7,585. Once the individual’s net income exceeds $12,220, the benefit would be reduced at a rate of 14 per cent of each additional dollar, until the benefit is fully phased out at net income of $20,734.

Finally, the chart illustrates how the proposed CWB compares to the benefit that would otherwise be received in the absence of the enhancement to the WITB associated with the Canada Pension Plan enhancement. Under that design, the WITB would provide a refundable tax credit of 25 per cent of each dollar of earned income in excess of $3,000, reaching a maximum benefit of $1,080 at earned income of $7,320. Once the individual’s net income exceeds $12,220, the benefit would be reduced at a rate of 15 per cent of each additional dollar, until the benefit is fully phased out at net income of $19,420.

Chart 1.3 - CWB Enhancement for Couples and Single Parents, 2019

The chart shows how a couple’s or a single parent’s entitlement to the proposed Canada Workers Benefit (CWB) would depend on that family’s earnings and net income. The CWB would provide a refundable tax credit of 26 per cent of each dollar of earned income in excess of $3,000, reaching a maximum benefit of $2,335 at earned income of $11,981. Once the family’s net income exceeds $17,025, the benefit would be reduced at a rate of 12 per cent of each additional dollar, until the benefit is fully phased out at family net income of $36,483.

The chart also illustrates how the proposed CWB compares to the benefit that would otherwise be received taking into account the enhancement to the Working Income Tax Benefit (WITB) in 2019 associated with the Canada Pension Plan enhancement. Under that design, the WITB would provide a refundable tax credit of 26 per cent of each dollar of earned income in excess of $3,000, reaching a maximum benefit of $2,165 at earned income of $11,327. Once the family’s net income exceeds $16,875, the benefit would be reduced at a rate of 14 per cent of each additional dollar, until the benefit is fully phased out at net income of $32,339.

Finally, the chart illustrates how the proposed CWB compares to the benefit that would otherwise be received in the absence of the enhancement to the WITB associated with the Canada Pension Plan enhancement. Under that design, the WITB would provide a refundable tax credit of 25 per cent of each dollar of earned income in excess of $3,000, reaching a maximum benefit of $1,961 at earned income of $10,844. Once the family’s net income exceeds $16,875, the benefit would be reduced at a rate of 15 per cent of each additional dollar, until the benefit is fully phased out at net income of $29,948.

Chart 1.4 - Comparison of Canada Child Benefit and Old Child Benefit System, 2017–18

Chart 1.5 - Annual GIS Benefits for Single Seniors, 2017

Chart 1.6 - Women Account for the Vast Majority of New EI Parental Claims and of the Total Amount Paid in EI Parental Benefits

Chart 1.7 - Canada's Free Trade Network

Chart 1.8 - Reduction in the Small Business Deduction Limit Based on Passive Investment Income

Figure 1.1 - Canada's National Housing Strategy Over $40-Billion, 10-Year Investment

• Canada’s National Housing Strategy is a more than $40 billion dollar, 10-year investment in affordable housing.
• Over the next decade, the National Housing Strategy will:
• Create more than 100,000 new housing units;
• Protect 385,000 community housing units and create 50,000 more;
• Remove 530,000 households from housing need;
• Support 300,000 households with a Canada Housing Benefit;
• Reduce chronic homelessness by 50 per cent; and,
• Repair and renew 300,000 existing housing units.

Figure 1.2 - EI Parental Sharing Benefit

Employment Insurance parental benefits allows parents to take the time they need to care for their children.

To support equal parenting and the flexibility for earlier returns to work, the Government introduces a new Employment Parental Sharing Benefit which will be available when both parents agree to share parental leave.

Currently, under the standard parental benefit option of 35 weeks paid at 55 per cent of average weekly earnings:

• Either parent may take up to 35 weeks;
• The other parent may take the remainder of the 35 total weeks available;
• Parents can share the 35 total weeks in various combinations. For example, one parent could choose to access 20 weeks, and the other 15 weeks; or one parent could choose to access 10 weeks, and the other 25 weeks.  
• If a couple decides that one parent takes 35 weeks, there are no week available to the other parent.

In comparison, with the new Employment Insurance Parental Sharing Benefit:

• Either parent may take up to 35 weeks;
• The other parent may take the remainder of the 40 total weeks available;
• Parents can share the 40 total weeks in various combinations. For example, parents could choose to split the parental benefits equally and each access 20 weeks; or one parent could choose to access 15 weeks, and the other 25 weeks. 
• A minimum of 5 weeks is available for each parent.

Equivalent rules would apply to Employment Insurance extended parental benefits with 61 weeks as the limit for one parent, and up to 69 weeks available in total (paid at 33% of average weekly earnings).

Figure 1.3 - Preparing Canada’s Labour Force for the Skills of Tomorrow

A graphic outlining an initiative which will include two elements. The first element is the Skills Innovation Council which will include up to 15 expert independent members who report publicly through the Minister of Employment, Workforce Development and Labour. The second element is the Skills Lab which is an autonomous research lab to pursue projects to prototype, test and disseminate evidence on skills development and measurement.