The Conversative government unleashed their budget yesterday and the $1,200 ($100/month) daycare allowance for children under 6 came through as expected. But, the allowance isn't quite "free money" -- the government is going to tax you on it based on your income bracket. So they give you money, only to tax it and take it back. What's the point of that? I have to wonder how much it costs for the government to go through that entire process? To setup the administrative infrastructure to handle the allowance and give it out in the first place, only to make sure it's taxed and take it back. What will I end up with? $5. Actually, I have no clue what I'll end up with, unless you're an accountant or you read the budget with a fine-tooth comb, most of it is gobbly-gook, and very few people really understand how it will impact them. The Conversatives are lauding their 28 tax breaks, and yet income tax is going up for low income earners. And in Quebec (where we have to take into consideration provincial tax too), the last number I saw was 51% -- that is, including all taxes, we're taxed at a 51% rate (the highest tax bracket, which I think starts at about $15,000 year in salary *chuckle*). For every dollar I earn, I have to give away 51 cents in tax. That's sick. Anyway, I'll take the Conversative government's $100/month for childcare (I have a kid under 6) and then come tax time I'll give it back. Or maybe they'll tax it right off the bat, I don't really know actually. But I don't really see how this money makes that big a difference - after you've taxed it and take into account how expensive daycare is. In Quebec we have that supposedly amazing daycare program: $7/day. There's a 2-year waiting list. My wife and I would have had to put our son on the waiting list before he was born, heck, before he was even a twinkle in our eye. (I don't think you can put kids on a list before they're born.) So, instead of $7/day we pay $26/day, which comes out to approximately $520/month. That $100/month (taxed: so I'll probably get $50-$60/month *maybe*) isn't even making a dent. Now I chose to have a kid and I don't expect because of that I should automatically get a handout...people without children don't get the $100/month...but giving money the way the Conversatives are doing it, just doesn't seem to make a lot of sense. Why not address the real issue: create affordable daycare spaces. One could argue that as soon as the government puts their hands into something (like daycare) they'll botch it up so it's better to just give money to the people, and I do agree with that somewhat (the government botching part), but I think the $1,200/kid thing is just a flashy thing that the Conversative government thought would look good at election time, not necessarily the best solution (same goes for the cut in G.S.T.) I think the Conversatives will run the government in a tighter, more fiscally-responsible way than the Liberals, but I also think the promises they made that they're executing on now were done because they're "sexier", not necessarily the best way of doing things. What are others in the blogosphere saying? Here's some links that came up high on Google's Blogsearch: * Canadian Budget Changes * Encouraging Budget * Federal Budget Highlights (Technorati Tags: conversative government, federal budget, canadian budget, gst, childcare allowance)