Baby Bonus

The Conservatives annouced they want to give every family $1200/year for each child under the age of 6. This is certainly better than the idea of socialized day care that the Liberals and NDP want. If we are going to spend money to help parents raise their children, who knows how to spend the money then the actual parents themselves? This money can still go towards day care if the parents want to send their kids there. But maybe one of the parents wants to work part time then use the $1200 to help pay for a babysitter or one parent does not work and the $1200 will help a parent be able to afford to stay home. Socialized day care really won't be equal for all, many do not live in urban settings and will be paying towards the children in cities while their children recieve nothing. I will always favour giving the user direct payments to let them choose the service that best fits their need over the government providing a service that a family may or may not want.

The money will count as taxable income, but can be counted for either parent. So if one parent does not work and this is their only income, they will not pay any tax on this. This plan certainly helps the poor more than the rich, as the income will be taxable at the marginal tax rate of the lowest income earning parent.

Now this does not get to the real reason that people have trouble paying for child care, taxes are just too high. Consumption, income, payroll, and property taxes take so much of the income that every Canadian earns, it is no wonder they are reliant on the government to help take care of their children. This $1200 will be helpful, but I'm hoping we can reduce the tax burden to the point where it will not be needed.