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.
Related reading
What Canada could learn from Australia about houses and taxes
Australian legislators are in the midst of daring to do that thing that makes Canadian lawmakers balk: trying to change the tax system so that it encourages the building of new homes, improves affordability for first-time home buyers and confronts intergenerational inequity.
Moolala Podcast: The Truth About Money in Canada: Scams, FHSAs, Financial Advice & Awareness
In this episode of Moolala: Money Made Simple, host Bruce Sellery speaks with Heather Scoffield, CEO of the Canadian Tax Observatory, who shares eye-opening research on Canada’s First Home Savings Account and who it’s really benefiting.
Taxes and Trade-offs: Heather Scoffield speaks with the Politics of Money podcast
Heather and Sahir talk about how Canada’s tax debate has become toxic — and narrowly focused. Heather explores the dangers of this debate becoming disconnected from what taxes actually pay for and the need for Canada to finally have an open and honest discussion about taxation.
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