Feds hoping to expand take up of working income tax benefit as program grows
OTTAWA — A federal budget aimed at Canada’s middle class will also have a focus on the second part of the Liberals’ political target audience: those who wish to join it.
An expansion to the Working Income Tax Benefit will be laid out in next week’s federal spending blueprint following a commitment last fall from the Liberals that they’ll put $500 million more into the program, starting next year.
The benefit, known by its acronym WITB, has been around for over a decade. Put simply, it allows people typically earning minimum wage or less to effectively earn more by subsidizing their wages with a tax credit.
“When you see that higher wage rate, we expect people to be willing to work more and stay more attached to their jobs,” said Tammy Schirle, an economics professor at Wilfrid Laurier University.