Friday, December 19, 2025
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

    Embattled Saanich Mayor, Richard Atwell, Wants To Get On With City Business

    VICTORIA — The beleaguered mayor of a Vancouver Island community says he's putting personal and business distractions behind him and wants to get on with the job of running the District of Saanich.

    Embattled Saanich Mayor, Richard Atwell, Wants To Get On With City Business

    Surrey Dog Walker Awaits Sentence For Canine Deaths; Pet Owners Call For Jail Time

    Surrey Dog Walker Awaits Sentence For Canine Deaths; Pet Owners Call For Jail Time
    Emma Paulsen appeared in a Surrey, B.C., court on Wednesday for a sentencing hearing after pleading guilty last November to animal cruelty and mischief.

    Surrey Dog Walker Awaits Sentence For Canine Deaths; Pet Owners Call For Jail Time

    RBC Alleges Theft Of $200,000 From Vancouver Branch Was An Inside Job

    RBC Alleges Theft Of $200,000 From Vancouver Branch Was An Inside Job
    VANCOUVER — Royal Bank of Canada (TSX:RY) is accusing two former employees who worked at a Vancouver branch of orchestrating a pair of robberies worth more than $200,000.

    RBC Alleges Theft Of $200,000 From Vancouver Branch Was An Inside Job

    Baird declines invite for special Syria meeting at Davos that includes Iran

    Baird declines invite for special Syria meeting at Davos that includes Iran
    OTTAWA — Foreign Affairs Minister John Baird plans to take a pass on this week's high-level meeting, chaired by his Norwegian counterpart, on the future of Syria at the World Economic Forum in Switzerland.

    Baird declines invite for special Syria meeting at Davos that includes Iran

    Crown defends issuing arrest warrant for hockey great Guy Lafleur in 2008

    Crown defends issuing arrest warrant for hockey great Guy Lafleur in 2008
    MONTREAL — The Crown maintains the warrant issued for the arrest of former hockey great Guy Lafleur in 2008 was justified considering the seriousness of the crime.

    Crown defends issuing arrest warrant for hockey great Guy Lafleur in 2008

    Nova Scotia court hears explicit testimony in 'Mile High Club' case

    Nova Scotia court hears explicit testimony in 'Mile High Club' case
    HALIFAX — A flight attendant told the trial of a woman accused of committing an indecent act on a Toronto-to-Halifax flight that she and a man used a coat to cover their laps to fondle each other.

    Nova Scotia court hears explicit testimony in 'Mile High Club' case