Ottawa should soften bite of benefit clawbacks for low-income families
Canada’s tax system has a punitive impact on lower income families with children hoping to earn more money, according to a new report from the C.D. Howe Institute. In “Softening the Bite: The Impact of Benefit Clawbacks on Low-Income Families and How to Reduce It,” authors Alex Laurin and Nicholas Dahir reveal how benefit reductions serve as hidden tax rates and reduce the effective gain from working to generate additional income.
Read full report here.