Poverty and the limits of the Disability Tax Credit
The Disability Tax Credit (DTC) was initially set up to account for higher day-to-day costs faced by people with disabilities. In 2023, however, the federal government introduced the Canada Disability Benefit and required certification for the DTC as a prerequisite, turning the DTC into a “gateway” for programs and policies that can make or break a person’s ability to make ends meet.
New research from the Canadian Tax Observatory authored by Dr. Gillian Petit finds that 84 per cent of people with disabilities do not have DTC certification—and can’t access the other disability programs it is intended to unlock. This means the majority of people who could benefit for federal disability supports are excluded before they can access them.
The report examines and dissects the tangled web of process and bureaucracy connected to the DTC and finds that at every step along the way, there are deep flaws and barriers that perpetuate the very poverty trap it is meant to alleviate.
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