The Universal Child Care Benefit or #UCCB has stirred a lot of comment in the twittersphere. Early commenters question the universal nature of the program, noting that as a result, all Canadians with children regardless of means will receive the benefit. However, universality has historically been a hallmark of Canadian programs, such as the baby bonus and health care. So this one is really no different.
Other early commenters point out that the benefit is taxable. Like many of the universal programs where the benefit is received as cash, it is subject to income tax. Depending on one’s income level this can reduce the benefit up to 52%.
Another observation is as this program was introduced, the child tax credit was removed, thus further reducing the net benefit families with children might see. In an analysis [see: 3 things to know about the UCCB payments’ impact — CBC] it was shown that a family might expect to receive somewhere between $13 and $19 additional benefit per child per month.
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