Yves Giroux released a report Tuesday that says extending the emergency income support program for another eight weeks will cost $17.9-billion, a figure that is well below estimates by the federal government
Adrian Wyld/The Canadian Press
The PBO released a report Tuesday that says extending the emergency income support program for another eight weeks will cost $17.9-billion, a figure that is well below estimates by the federal government.One of the main differences between the numbers is that the PBO estimates the total cost of the program after income tax is eventually collected, while the government has not released comparable figures.
“The government was clear, I would say, on the fact that it was taxable. But in a time of crisis, I think this point probably escapes most people. My fear is that there will be a lot of unpleasant surprises come April 30, 2021, when people are faced with the bottom line on their tax returns when it says they owe a few hundred or a few thousand dollars, and that’s a concern,” said Mr. Giroux, who is a former senior official at the Canada Revenue Agency .
There are three more federal tax brackets for higher income levels. Provincial income tax also applies to CERB payments.As a rule of thumb, the PBO calculates CERB recipients will owe an average of $252 for every $2,000 received in benefit payments.The federal government has said the original CERB program with up to 16 weeks of benefits would cost $60-billion, not accounting for income tax collected on the payments.
A panel of public policy experts organized by the C.D. Howe Institute released a report Tuesday that criticizes key elements of the government’s proposed bill.
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