Politics & Policies

Minimum Wage in Ontario – Low-income Individuals and Families Tax (LIFT) credit will provide fewer benefits to Ontarians than cancelled minimum wage increase

Peter Weltman, Financial Accountability Officer of Ontario, has just released a commentary Comparing the LIFT Credit to a Minimum Wage Increase.

“The LIFT credit will provide fewer benefits to minimum wage workers than increasing the minimum wage from $14 per hour to $15 per hour,” says Weltman.

The Province introduced the LIFT credit to provide tax relief to low-income individuals and families, including those earning minimum wage. The FAO estimates that 1.0 million Ontarians will receive an average LIFT credit of $409 in 2019 and the LIFT credit will provide a total of $418 million of tax relief.

For comparison, there are 1.3 million Ontarians that would have received an average after tax benefit of $810 from increasing the minimum wage to $15 per hour. However, only 38 percent of minimum wage earners in Ontario will receive the LIFT credit, and those individuals will receive fewer benefits from LIFT than an increase in the minimum wage.

“Many minimum wage earners do not pay provincial tax therefore they will not benefit from the LIFT credit,” says Weltman.

Combined, lost provincial tax revenue from cancelling the minimum wage increase and the cost of the LIFT credit will worsen the Province’s budget balance by a total of $1.9 billion from 2018-19 to 2022-23. The cost of the LIFT credit is projected to peak in 2019-20 and gradually decline thereafter, as the credit is not indexed to inflation.

Chosen excerpts by Job Market Monitor. Read the whole story at MEDIA RELEASE: LIFT credit will provide fewer benefits to Ontarians than cancelled minimum wage increase

Discussion

Trackbacks/Pingbacks

  1. Pingback: Minimum Wage Workers in Canada Over the Last 20 Years | Job Market Monitor - September 12, 2019

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Jobs – Offres d’emploi – US & Canada (Eng. & Fr.)

The Most Popular Job Search Tools

Even More Objectives Statements to customize

Cover Letters – Tools, Tips and Free Cover Letter Templates for Microsoft Office

Follow Job Market Monitor on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow Job Market Monitor via Twitter

Categories

Archives

%d bloggers like this: