Chair and members, thank you.
My name is Krista Carr. I am the CEO of Inclusion Canada. I speak today not only for our organization but also for a broader coalition of disability organizations across this country. Our ask is straightforward: Increase the base amounts for the disability tax credit and the child disability supplement so that their dollar value equals what they would be at 15%, now and in future years. Do not let a general rate cut shrink disability supports.
We are here because Canada is about to make a policy mistake that this committee can prevent. This summer, Canada launched the new Canada Disability Benefit. It will provide up to $2,400 per year to low-income Canadians with disabilities. While still not adequate, it is progress. But with this progress, at the same time, Bill C-4 will now reduce the value of the disability tax credit. We cannot give with one hand and take with the other.
Here is what is happening. Bill C-4 lowers the lowest federal income tax rate to 14.5% this year and 14% next year. That same rate is used to calculate the value of non-refundable tax credits, including the disability tax credit and the child disability benefit. When the rate drops, the credit value drops correspondingly. Those numbers may sound small in this room, but nearly one million Canadians rely on this credit to help manage the extra costs of living that come with a disability. For people already stretched far too thin, $100 matters.
The fix is precise and durable. For 2025, increase the disability tax credit base amounts by 3.45% to offset the rate reduction to 14.5%. For 2026 and later years, set an annual formula so that 14 times the adjusted base equals 15 times the indexed base for that year. CRA already publishes indexed amounts annually. This is an easy add-on to that existing process. It also future-proofs the credit if rates change again. If the marginal rate goes back up, the formula continues to work.
The disability tax credit exists because Parliament recognized 40 years ago that Canadians with disabilities face unavoidable expenses that others do not. The credit is not a windfall. It is a recognition of reality. Wheelchairs cost money, accessible transportation costs money, assistive technology costs money and the list goes on. This credit helps to modestly offset some of those costs.
The principle here is simple. Disability supports should not shrink to help pay for a general tax cut. We recognize that this is an unintended consequence of Bill C-4. We support making life more affordable for all Canadians. Keep the tax cut, but keep disability supports whole.
This committee has the authority to act. The Speaker confirmed in 2022 that amendments to non-refundable credits can be moved directly, without requiring additional procedural steps. This can be fixed at clause-by-clause.
Members of the committee, we are asking you to ensure that when Canada helps families with affordability, it does not leave behind individuals and families affected by disability. Amend Bill C-4 to increase the base amounts for the disability tax credit and the child disability benefit by formula. Keep the tax cut. Keep supports whole.
Thank you very much. I welcome your questions