Tax expenditures for social policy: A study of the federal child tax benefit system

The thesis is a study of the evolution of the refundable child tax credit (RCTC) in the federal personal income tax. The RCTC was motivated by a desire to bypass a constitutional impass between federal and provincial authorities, minimize budgetary outlays and provide financial assistance to the low-income working poor with children through income-conditioned benefits. The RCTC is examined from two vantage points: the negative income tax schemes common to the transfer literature and the tax expenditure concept common to tax literature.;The policy decision to enhance the RCTC amounts and simplify the overall child benefit programs by eliminating the universal family allowances program and the dependant tax deduction is examined. The policy decision to maintain the child care expense deduction and the refundable goods and services tax credit is also examined closely.