In this week’s budget, the federal government announced plans to fund the Canada Disability Benefit, which they say will help to reduce poverty among disabled Canadians.
Disability groups have raised concerns with the amount of the proposed benefit. However, the structure of the benefit highlights a broader problem with the design and administration of Canada’s income support system.
Benefits such as the Canada Disability Benefit, the carbon tax rebate, the GST/HST rebate and various provincial benefits, which exist in large part to support low-income Canadians, ignore the reality that many low-income Canadians do not file their taxes.
The numbers are astonishing.
A 2023 research paper shows that somewhere between 10 and 12 per cent of Canadians don’t file their taxes. Those who do not file are disproportionately low-income Canadians, the paper says.
What this means in practice is many of the Canadians who are in greatest need of receiving government support, such as the disability benefit or carbon tax rebate, don’t receive it.
