Finances of the Nation: Is the CWB Enhancement Achieving Its Dual Objective of Supporting Income and Incentivizing Work? The Effects for Couples in Ontario and Quebec

In this article, Luc Godbout and Suzie St-Cerny focus on the effects of enhancing the Canada workers benefit (CWB) in 2021. More specifically, they seek to determine whether, for couples in Ontario and Quebec, the enhancement served to render work more rewarding (by lowering effective marginal tax r...

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Bibliographic Details
Published in:Canadian tax journal 2023-07, Vol.71 (2), p.523-541
Main Authors: Godbout, Luc, St-Cerny, Suzie
Format: Article
Language:English
Online Access:Get full text
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Summary:In this article, Luc Godbout and Suzie St-Cerny focus on the effects of enhancing the Canada workers benefit (CWB) in 2021. More specifically, they seek to determine whether, for couples in Ontario and Quebec, the enhancement served to render work more rewarding (by lowering effective marginal tax rates) and to provide better income support for low-income workers (by increasing disposable income). The authors show that, while the objective of income support was achieved, the results for the objective of work incentivization were mixed, depending largely on a couple's family income level and working income split. The authors suggest how the CWB might be reformed to better fulfill its role in incentivizing work.
ISSN:0008-5111
0008-5111
DOI:10.32721/ctj.2023.71.2.fon