The 1996 Budget and Social Policy

In this same-day response to the 1996 federal Budget, the Caledon Institute of Social Policy describes and assesses the major social policy changes announced by the Minister of Finance.

Caledon strongly supports the new Seniors Benefit, which will replace Old Age Security, the Guaranteed Income Supplement and the age and pension income credits: Caledon proposed such a reform in 1993.  But the Budget was silent on child care, a crucial social policy on which the federal government has not delivered and which could be jeopardized by the Canada Health and Social Transfer.  Child support will see three changes – new rules for the tax treatment of both payers and recipients; federal support guidelines to help parents, lawyers and judges set fair and consistent child support awards; and stronger enforcement measures.  The Working Income Supplement for working poor families with children will be doubled, rising from its current maximum of $500 per family per year to $750 in 1997 and $1,000 in 1998.

The Budget announced no measures for job creation, though there were a number of modest increases to certain tax expenditures, including the education credit, the child care expense deduction, the credit for infirm dependents and the credit for charitable donations.

ISBN – 1-895796-65-2