The maximum Canada Child Tax Benefit will increase by about $300 a year per child to an annual amount of almost $2,400.

This increase was announced in the 2000 budget and expanded in the October 2000 Economic Statement and Budget Update. It is part of the Federal GovernmentÕs five-year $100-billion tax reduction plan. This plan is cutting
federal personal income tax by an average of 21%, although families with children are getting an even larger tax cut, about 27% on average.

“Increasing the CCTB helps to ensure that families with children benefit the most from tax relief measures we have announced to date,” said Martin. “This provides a direct benefit to families with children, particularly those for
whom the need is greatest.”

In addition to increasing the CCTB and making it available to more middle-income families, the Federal tax reduction plan cut personal tax rates at all income levels. It also restored full indexation to the personal
income tax system and eliminated the deficit-reduction surtax.