The Welfare Wall: Reforming the Welfare and Tax Systems

This report summarizes the findings of a study conducted by the Caledon Institute of Social Policy for the Ontario Tax Commission on the interaction of the welfare system and the federal and Ontario tax/transfer systems.  The purpose of the study was to determine the dimensons and weight of the tax burden faced by welfare recipients who supplement their benefits through paid work.  This report focuses upon various options for reform to help reduce the onerous tax burden on these households.  Options for reforming both the welfare and tax/transfer systems were designed on the Caledon Tax/Transfer Model, described in a companion document published by the Caledon Institute of Social Policy entitled: The Welfare Wall: The Interaction of the Welfare and Tax Systems.

ISBN – 1-895796-06-7