The Payback Budget of 2000

This report is a response to the federal budget of 2000, which Caledon believes will ‘rank among Canada’s most important.’ While Caledon argues that the money that will be devoted to debt repayment would better be spent on crucial social priorities, given the relatively small impact it will have on lowering the debt burden, generally the Budget’s key tax and spending changes are to be applauded; indeed, they respond closely to Caledon’s pre-Budget prescriptions. Among the most important and welcome changes are restoration of full indexation of the income tax system and the Canada Child Tax Benefit; above-inflation increases in tax brackets and the personal, spousal and spousal equivalent tax credits; and small but useful improvements in tax measures for Canadians with disabilities and their families. Ottawa also announced further investment in the Canada Child Tax Benefit that will virtually complete the current phase of reform (replacing welfare-delivered child benefits with a single income-tested benefit providing equal payments to all low-income families) and substantially improve child benefits for non-poor families as well as low-income families with children. The report also provides a critical review of other Budget measures, including parental leave under Employment Insurance, the repeal of the ‘head tax’ on refugees, the reiteration that the federal and provincial governments should negotiate reforms to early childhood development services, housing, and another increase in funding for health under the Canada Health and Social Transfer.

ISBN – 1-894159-93-4