Saturday, June 20, 2026
ADVT 
National

Does a family making $120K per year qualify as 'middle-class'? The feds think so

Darpan News Desk The Canadian Press, 27 Jan, 2015 11:24 AM

    OTTAWA — Canada's finance minister insists low- and middle-income families will see two-thirds of the benefits from the Harper government's contentious multibillion-dollar tableau of family-friendly measures.

    By that measure, Joe Oliver is suggesting families with annual incomes as high as $120,000 qualify as middle class.

    The Finance Department's own internal breakdown of the distribution of relief from the family package shows 68 per cent of the benefits — about two-thirds — will go to families that earn as much as $120,000 in 2015.

    The Canadian Press obtained the figures under the Access to Information Act.

    "Two-thirds of the benefits will go to low- and middle-income families," Oliver said Monday while defending the government's family package during Question Period in the House of Commons.

    "I'm proud that our government has presented a plan, a benefit plan for four million Canadian families — every one of them."

    That family plan, including a controversial $2-billion-per-year income-splitting component, is expected to be a centrepiece of the Tories' re-election campaign when Canadians head to the polls later this year.

    It has also become a preferred bull's-eye for their adversaries.

    Political opponents have zeroed in on the income-splitting element, calling it an unfair policy that provides no relief for 85 per cent of all Canadian households and provides more benefits to wealthier families.

    Looking at the family tax-and-benefit package as a whole, however, the subjective nature of the so-called "middle class" means who exactly stands to benefit — and who does not — remains an open question.

    There is no universal definition of the middle class, a term frequently trotted out by politicians as a way to connect with a large group of voters.

    Economists prefer to stick to statistical definitions to identify the middle class, such as isolating that 20 per cent of all income earners who land directly in the middle in terms of income.

    They may also try to pinpoint the median income, selected by lining up all earners from top to bottom and identifying the person in the middle.

    Statistics Canada says the median 2012 income level for families of at least two people was $82,100, including government transfers but before taxes. This measure includes families without kids.

    In its internal analysis of the family package, the Finance Department also used income calculated with transfers and before taxes, a spokesman said.

    The government's figures show that 25 per cent of the relief will go to families that earn under $30,000 in 2015; 11 per cent to those earning between $30,000 and $60,000; 15 per cent between $60,000 and $90,000; and 17 per cent between $90,000 and $120,000.

    Together, these categories represent 68 per cent of the relief. The average relief for families that earn less than $60,000 is expected to be $970, while those in the $60,000 to $120,000 bracket will get an average of $1,219.

    The remaining 32-per-cent share will benefit families that bring in more than $120,000 this year.

    The average relief for families that take home between $120,000 and $180,000 is $1,183, while those that earn more than $180,000 will receive an average benefit of $1,452.

    Overall, the government documents say 4.07 million families will benefit from the measures in 2015 by an average of $1,140 each.

    The entire package is expected to reduce government revenues by $4.62 billion in 2015, and $26.7 billion between 2014-15 and 2019-20.

    The government's tableau of family measures, announced in October, includes the expansion of the universal child care benefit and an increase to the maximum child-care expense deduction for each child.

    It also features income splitting, which will allow an eligible taxpayer with at least one child to transfer up to $50,000 of income to his or her spouse in order to collect a non-refundable tax credit of up to $2,000 per year.

    MORE National ARTICLES

    PETA plans billboard pitch based on corpse kept in Hamilton home for 6 months

    PETA plans billboard pitch based on corpse kept in Hamilton home for 6 months
    HAMILTON — An animal rights group known for some controversial ad campaigns is proposing a new billboard in Hamilton based on the case of a woman who kept her husband's corpse in a bedroom for six months.

    PETA plans billboard pitch based on corpse kept in Hamilton home for 6 months

    Swing stage company fined in 2009 scaffolding collapse that killed four workers

    Swing stage company fined in 2009 scaffolding collapse that killed four workers
    TORONTO — The company that supplied a swing stage involved in a deadly scaffolding collapse in Toronto on Christmas Eve 2009 has been fined $350,000 for failing to ensure the platform was in good condition.

    Swing stage company fined in 2009 scaffolding collapse that killed four workers

    Alberta premier puts gay youth bill on hold; takes blame for causing divisions

    Alberta premier puts gay youth bill on hold; takes blame for causing divisions
    EDMONTON — Alberta Premier Jim Prentice has put on hold a controversial bill that would have allowed gay students to form support groups, but only if schools approved them.

    Alberta premier puts gay youth bill on hold; takes blame for causing divisions

    Industry minister approves Burger King deal to takeover Tim Hortons

    Industry minister approves Burger King deal to takeover Tim Hortons
    OTTAWA — The federal government approved the takeover of Tim Hortons Inc. by Burger King Worldwide Inc. on Thursday after securing promises on jobs and that the coffee shop chain will remain a distinct brand.

    Industry minister approves Burger King deal to takeover Tim Hortons

    CF-18s step up sorties against ISIL; military confident no civilian deaths

    CF-18s step up sorties against ISIL; military confident no civilian deaths
    OTTAWA — The Canadian military says it is confident that no civilians have been killed to date as a result of its airstrikes against the Islamic State of Iraq and the Levant.

    CF-18s step up sorties against ISIL; military confident no civilian deaths

    Social security tribunal backlog could have been avoided, critics say

    Social security tribunal backlog could have been avoided, critics say
    OTTAWA — Why has the backlog plaguing the Conservative government's social security tribunal grown so large as ailing, injured and debt-addled Canadians denied Canada Pension Plan disability benefits wait years for appeal hearings?

    Social security tribunal backlog could have been avoided, critics say