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October 5, 2021

Mandate #4 (quick and dirty calculations)

'Tis the season for telling government officials what to do.  The Premier is distributing Mandate Letters to all departments. In that spirit, and so he doesn't feel left out, there are some chores for him too.  There are seven of them, and I will take each in turn.

#4     Make the Disability Tax Credit Refundable

So Mr. Houston, your new position pays $81,000 plus $83,000 for the burden of being Premier..  Your tax, ignoring other income and deductions, would be $57,728.  I don't know a thing about your family, but if you had a minor child with a disability, you could claim a credit (see Mandate #1) of $8,576 + $5,003 = $13,579.  A nice gift from fellow taxpayers.

A 2001 CRA study pegged the income of families having children with disabilities at 84% of the average.  In 2021 that would be $52,836.  The tax on that is $11,205.  That difference ($13,579 - $11,205 = $2,374) means the DTC is 21% less valuable to the average family than it would be to you.

$2,374 would pay for many trips to see specialists, an IPad, subscriptions to High-Speed internet or even a Registered Disability Savings Program (heaven forfend!)

This is exactly backward. Taxpayers don't mind helping those in need, but they know a bad deal when they see one.  As you say on your website, "working families need more money in their pocket, and Nova Scotians want to know their parents and grandparents will have a long-term care bed, when they need one."

So be the first of your kind to lobby the Feds for a refundable DTC.  It's in everyone's interest and illuminates the way to a more prosperous province.

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