Child Care Benefit another Harper lie

So all the taxpayers (with kids) just thought they got a little more richer.

The Federal Government announced with great fanfare the new increased dollar amount for the Universal Child Care Benefit. Increasing the amount to $2,000 annually for each kid under age six and $720 annually for each kid ages 6-17.

Now this sounds great doesn't it? Free money from the Feds to put into your wallet to help ends meet. Well by the TV ads this is exactly what Harpers Conservatives want you to believe. After all, it is an election year.

Well now the hard truth. The part the government is not formally telling you.

This money is taxable. That's right. They give and then they take back. But the trick is they don't tax you up front when they give you the money. It will come as a T-4 slip for you to declare on your taxes next year come February. For some this could push you higher into the next tax bracket which means you will get taxed at a higher rate.

So they give in July, you vote them back in come October and then come February its, oh, you owe us tax on that!

Even worse is another little fact the government is not openly telling you. Come income tax time you will no longer get the Child Tax Credit. It is being eliminated. For the average Canadian family with young kids this will be a loss of $30 per child on your return. BAM! They got you again!

Word of advice. The best way to help offset this scam is don't spend the money. Put it into a Tax Free Savings Account or add it to a Education Fund where it is also tax sheltered. In the long run this will offset the tax hits.

More advice. Don't be fooled into voting Conservative come October. You will just be asking for more lies from Mr. Harper and his Reform Fascists.