NEWS
08/21/2015 13:24 EDT | Updated 08/21/2016 01:12 EDT

Clarification to Aug. 20 story about proposed changes to adoption tax credit

KING TOWNSHIP, Ont. — In a story Aug. 20 dealing with proposed changes to the federal adoption expenses tax credit, The Canadian Press reported that the cost of the changes, including making the credit fully refundable, would be nominal to the government in part because the majority of tax filers claiming the credit in 2012 — about 80 per cent — had earnings in excess of $40,000.

The story, which cited information from Amin Mawani, a professor at York University's Schulich School of Business, did not fully explain the effects of making the credit refundable. While higher wage earners are more likely to embark on more expensive adoptions, they also generally face higher tax bills, which means they would likely receive more of the tax credit whether it was refundable or not.

In other words, because the majority of those who claim the credit are likely already going to receive a refund because of their income level, making the credit fully refundable wouldn't cost the government significantly more money.

The Canadian Press