OTTAWA - Beginning July 1st, two new tax initiatives outlined in Canada’s Economic Action Plan come into effect. These are the National Child Benefit Supplement (NCBS) and the Canada Child Tax Benefit.

These programs provide targeted tax benefits for low-income families with children.  Starting July 1, the thresholds at which they start to be phased-out will be raised to $23,710 and $40,726 respectively.

These new thresholds mean that eligible families with two children will receive additional benefits of up to $436 a year starting in July 2009.

These changes, announced in Canada’s Economic Action Plan, are part of a comprehensive effort on the part of the Conservative government to stimulate the Canadian economy through infrastructure spending and broad based tax relief. In fact, the plan provides more than $20 billion in new tax relief for Canadian individuals and businesses.

“We are reducing taxes for Canadians from all walks of life and, in particular, for low and middle-income earners, families and seniors,”said local MP Guy Lauzon. 

“When we reduce the tax burden on Canadians, they are able to spend this money on their families’ priorities.  This also helps stimulate the economy and create jobs.”