More Choice for New Parents
I firmly believe that families are the foundation of our society. For new moms and dads, the costs associated with caring for a new baby coupled with the loss of income when either parent chooses to stay home to take care of their child can be overwhelming and a source of stress in what should be an incredibly happy time. Too often, that is the time in a family when funds are least available.
What if we could make it just a little easier on parents of newborns? As Prime Minister, I would make EI Parental and Maternity benefits tax-free.
Take the example of Nicole and John, a couple in Mississauga. Nicole will work till her baby is due and plans to take 15 weeks off, after which time, John will take parental leave for 35 weeks and Nicole will go back to work. Both the benefits that Nicole receives during her initial 15 weeks and the benefits John receives in the subsequent 35 weeks would be completely free of federal income tax. This adds up to real savings when it comes to paying their tax bill that year.
As well, I have heard from countless parents who shared frustrations about the limitations put on them with regards to doing any work while on maternity or parental leave. Therefore, I will also raise the allowable amount of time in a week that parents can work while on leave, giving them more choice and flexibility.
As the father of five children, I know that welcoming a new addition into a family is an incredibly joyous time and can also be scary. That’s why I want to make it easier for parents to make the right decisions for their family.