The poorest couples would get an extra $840 a year and the poorest single seniors will see an extra $600. But that amount would be clawed back very quickly as the recipients income grows.
Finance Department officials figure 680,000 people would qualify for at least some of the new benefit. That’s about a third of all the people currently dependent on GIS.
For caregivers, the budget gives a 15-per-cent tax credit on $2000 of income ; up to $300 per caregiver as long as the caregiver is earning wages and paying taxes.
The credit wouldn’t help the poorest caregivers, since they are usually exempt from paying taxes, but it would likely encourage more families to care for their relatives at home, rather than in an institution, said Libarid Guluzian, an accountant with PricewaterhouseCoopers.
The budget proposes forgiving the student loans of doctors and nurses who practice in a rural community. Doctors would be able to write off up to $40,000 if they stay for five years, while nurses could write off up to $20,000.
The loan program will likely be expanded if its proven effective, said Tim Vail, spokesman for Health Minister Leona Aglukkaq.
Keywords: budget, poverty, caregiver tax-refund
