diff --git a/.claude-plugin/marketplace.json b/.claude-plugin/marketplace.json index 7fd15d9..faa472f 100644 --- a/.claude-plugin/marketplace.json +++ b/.claude-plugin/marketplace.json @@ -25,6 +25,7 @@ "./skills/documentation/policyengine-user-guide-skill", "./skills/domain-knowledge/policyengine-us-skill", "./skills/domain-knowledge/policyengine-uk-skill", + "./skills/domain-knowledge/policyengine-canada-skill", "./skills/documentation/policyengine-writing-skill" ] }, @@ -185,6 +186,7 @@ "./skills/tools-and-apis/policyengine-microsimulation-skill", "./skills/domain-knowledge/policyengine-us-skill", "./skills/domain-knowledge/policyengine-uk-skill", + "./skills/domain-knowledge/policyengine-canada-skill", "./skills/domain-knowledge/policyengine-healthcare-skill", "./skills/analysis/policyengine-analysis-skill", "./skills/technical-patterns/python-skill", @@ -311,6 +313,7 @@ "skills": [ "./skills/domain-knowledge/policyengine-us-skill", "./skills/domain-knowledge/policyengine-uk-skill", + "./skills/domain-knowledge/policyengine-canada-skill", "./skills/domain-knowledge/policyengine-healthcare-skill", "./skills/documentation/policyengine-user-guide-skill", "./skills/tools-and-apis/policyengine-microsimulation-skill", diff --git a/changelog.d/canada-skill.added.md b/changelog.d/canada-skill.added.md new file mode 100644 index 0000000..a36513b --- /dev/null +++ b/changelog.d/canada-skill.added.md @@ -0,0 +1 @@ +Add Canada domain skill with household-only analysis (no microsimulation) diff --git a/skills/domain-knowledge/policyengine-canada-skill/SKILL.md b/skills/domain-knowledge/policyengine-canada-skill/SKILL.md new file mode 100644 index 0000000..7ede35f --- /dev/null +++ b/skills/domain-knowledge/policyengine-canada-skill/SKILL.md @@ -0,0 +1,353 @@ +--- +name: policyengine-canada +description: | + ALWAYS LOAD THIS SKILL FIRST before writing any PolicyEngine-Canada code. + Contains Canadian federal and provincial tax/benefit rules for household calculations. + IMPORTANT: PolicyEngine-Canada does NOT have representative population microdata. + Do NOT attempt microsimulation or population-level estimates for Canada. + Only provide household-level analysis (single-family impacts, eligibility, benefit amounts). + Triggers: "what would", "how much would a", "benefit be", "eligible for", "qualify for", + "single parent", "married couple", "family of", "household of", "if they earn", + "earning $", "making $", "calculate benefits", "calculate taxes", "benefit for a", + "what would I get", "what is the maximum", "what is the rate", "income limit", + "benefit amount", "maximum benefit", "compare provinces", + "CCB", "Canada Child Benefit", "GST credit", "HST credit", "GST/HST", + "OAS", "Old Age Security", "GIS", "Guaranteed Income Supplement", + "CWB", "Canada Workers Benefit", "EI", "Employment Insurance", + "CPP", "Canada Pension Plan", "RRSP", "TFSA", + "Ontario Child Benefit", "OCB", "Ontario Trillium Benefit", "OTB", + "BC Climate Action", "Alberta Child Benefit", "Quebec", + "CRA", "Canada Revenue Agency", "Canadian", "Canada", + "Ontario", "British Columbia", "Alberta", "Saskatchewan", "Manitoba", + "Nova Scotia", "New Brunswick", "PEI", "Newfoundland", "Yukon", "NWT", "Nunavut", + "provincial tax", "federal tax Canada". +--- + +# PolicyEngine-Canada + +> **IMPORTANT: Always use the current year (2026) in calculations, not 2024 or 2025.** + +## No Microsimulation for Canada + +**PolicyEngine-Canada does NOT have representative population microdata.** The only available +dataset is a tiny template with 3 synthetic people. This means: + +- **Do NOT** use `Microsimulation()` from `policyengine_canada` for population-level estimates +- **Do NOT** attempt to calculate aggregate costs, revenue impacts, or poverty rates for Canada +- **Only provide household-level analysis**: calculate impacts for specific families using `Simulation` +- If the user asks "what would X cost nationally" or "how many families would benefit", explain + that population-level estimates are not currently available for Canada and offer a household + example instead + +### What you CAN do + +- Calculate benefits/taxes for a specific household (income, province, family composition) +- Compare baseline vs. reform for a single family +- Show how benefits change across an income range +- Compare provinces for a given household + +--- + +PolicyEngine-Canada models the Canadian federal and provincial tax and benefit system. + +**What it models:** + +**Federal taxes:** +- Federal income tax (5 brackets) +- Canada Pension Plan (CPP/CPP2) contributions +- Employment Insurance (EI) premiums + +**Federal benefits:** +- Canada Child Benefit (CCB) +- GST/HST Credit +- Canada Workers Benefit (CWB) +- Old Age Security (OAS) +- Guaranteed Income Supplement (GIS) +- Climate Action Incentive Payment (CAIP) + +**Provincial programs (varies by province):** +- Provincial income tax (all provinces and territories) +- Ontario Child Benefit (OCB) +- Ontario Trillium Benefit (OTB) +- BC Climate Action Tax Credit +- Alberta Child and Family Benefit +- Quebec-specific programs (QST, QPP, etc.) + +**See full list:** https://policyengine.org/ca/parameters + +--- + +## Key Federal Programs — Rules Reference + +### Canada Child Benefit (CCB) — 2025–2026 + +The CCB is a tax-free monthly payment to eligible families with children under 18. + +**Maximum amounts (July 2025 – June 2026):** +- Under 6: **$7,997**/child/year ($666.41/month) +- Ages 6–17: **$6,748**/child/year ($562.33/month) + +**Phase-out structure:** +The CCB is reduced based on adjusted family net income (AFNI) using two thresholds. + +**Threshold 1: $37,487** +| Number of children | Reduction rate (AFNI $37,487–$79,845) | +|---|---| +| 1 child | 7.0% | +| 2 children | 13.5% | +| 3 children | 19.0% | +| 4+ children | 23.0% | + +**Threshold 2: $79,845** +| Number of children | Reduction rate (AFNI above $79,845) | +|---|---| +| 1 child | 3.2% | +| 2 children | 5.7% | +| 3 children | 8.0% | +| 4+ children | 9.5% | + +**Child Disability Benefit (CDB) supplement:** +- Up to **$3,411**/year ($284.25/month) per child eligible for the Disability Tax Credit +- Reduced at 3.2% of AFNI above $79,845 (1 child), 5.7% (2+ children) + +**CCB calculation formula:** +``` +For each income range: + CCB = sum(max_amount per child) - reduction + + If AFNI <= $37,487: no reduction + If $37,487 < AFNI <= $79,845: + reduction = rate_tier1 × (AFNI - $37,487) + If AFNI > $79,845: + reduction = rate_tier1 × ($79,845 - $37,487) + rate_tier2 × (AFNI - $79,845) +``` + +**Example calculation — 2 children (ages 3, 8), AFNI = $80,000:** +``` +Max CCB = $7,997 (under 6) + $6,748 (6-17) = $14,745 +Tier 1 reduction = 13.5% × ($79,845 - $37,487) = 13.5% × $42,358 = $5,718 +Tier 2 reduction = 5.7% × ($80,000 - $79,845) = 5.7% × $155 = $9 +Total reduction = $5,727 +CCB = $14,745 - $5,727 = $9,018/year +``` + +### Federal Income Tax — 2026 + +**Tax brackets:** +| Taxable income | Rate | +|---|---| +| Up to $57,375 | 15% | +| $57,375 – $114,750 | 20.5% | +| $114,750 – $158,468 | 26% | +| $158,468 – $220,000 | 29% | +| Over $220,000 | 33% | + +**Basic personal amount (BPA):** $16,129 (2026, indexed) + +> Note: Bracket thresholds are indexed annually to inflation. Check CRA for exact 2026 values. + +### GST/HST Credit — 2025–2026 + +Tax-free quarterly payment for low/modest-income individuals and families. + +**Maximum amounts (July 2025 – June 2026):** +- Single: **$340**/year +- Married/common-law: **$340** + **$179** for spouse = **$519** +- Per child under 19: **$179** + +**Phase-out:** +- Begins at family net income of **$44,530** +- Reduction rate: 5% of income above threshold + +### Canada Workers Benefit (CWB) — 2026 + +Refundable tax credit for low-income workers. + +**Single individuals:** +- Maximum: ~**$1,590** +- Phase-in: 27% of working income above $3,000 +- Phase-out: 15% of net income above ~$24,975 + +**Families:** +- Maximum: ~**$2,739** +- Phase-in: 27% of working income above $3,000 +- Phase-out: 15% of family net income above ~$28,494 + +**Disability supplement:** +- Additional ~**$784** for CWB-eligible individuals with the Disability Tax Credit + +### Old Age Security (OAS) — 2026 + +Monthly pension for seniors 65+. + +**Maximum amounts (Q1 2026):** +- Ages 65–74: ~**$727.67**/month ($8,732/year) +- Ages 75+: ~**$800.44**/month ($9,605/year) + +**OAS recovery tax (clawback):** +- Threshold: ~**$90,997** net income +- Rate: 15% of income above threshold +- Full clawback at ~**$149,211** (65–74) or ~**$154,196** (75+) + +### Guaranteed Income Supplement (GIS) — 2026 + +Monthly benefit for low-income OAS pensioners. + +**Maximum amounts (Q1 2026):** +- Single: ~**$1,086.88**/month +- Spouse receives OAS: ~**$654.23**/month each + +**Income test:** +- Reduced by 50% (or 75% for partial amounts) of income above exempted amounts +- Employment income exemption: first $5,000 fully exempt, next $10,000 at 50% + +--- + +## Provincial Tax — Ontario (2026) + +**Ontario income tax brackets:** +| Taxable income | Rate | +|---|---| +| Up to $52,886 | 5.05% | +| $52,886 – $105,775 | 9.15% | +| $105,775 – $150,000 | 11.16% | +| $150,000 – $220,000 | 12.16% | +| Over $220,000 | 13.16% | + +**Ontario surtax:** +- 20% of basic provincial tax above $5,315 +- Plus 36% of basic provincial tax above $6,802 + +### Ontario Child Benefit (OCB) + +- Maximum: **$1,726.92**/child/year ($143.91/month) for July 2025 – June 2026 +- Phase-out begins at family net income of **$24,045** +- Reduction rate: 8% per child of income above threshold + +### Ontario Trillium Benefit (OTB) + +Combines three credits: +1. **Ontario Energy and Property Tax Credit** — up to $1,248 (seniors $1,421) +2. **Northern Ontario Energy Credit** — up to $180 (families $277) +3. **Ontario Sales Tax Credit** — up to $360/adult + $360/child + +--- + +## Provincial Tax — Other Provinces + +### British Columbia (2026) +| Taxable income | Rate | +|---|---| +| Up to $47,937 | 5.06% | +| $47,937 – $95,875 | 7.70% | +| $95,875 – $110,076 | 10.50% | +| $110,076 – $133,664 | 12.29% | +| $133,664 – $181,232 | 14.70% | +| Over $181,232 | 20.50% | + +### Alberta (2026) +| Taxable income | Rate | +|---|---| +| Up to $148,269 | 10% | +| $148,269 – $177,922 | 12% | +| $177,922 – $237,230 | 13% | +| $237,230 – $355,845 | 14% | +| Over $355,845 | 15% | + +### Quebec (2026) +| Taxable income | Rate | +|---|---| +| Up to $51,780 | 14% | +| $51,780 – $103,545 | 19% | +| $103,545 – $126,000 | 24% | +| Over $126,000 | 25.75% | + +> Note: Quebec has its own tax system (Revenu Québec) with unique credits and deductions. QPP replaces CPP. + +--- + +## CPP Contributions — 2026 + +**CPP (first ceiling):** +- Maximum pensionable earnings: ~**$71,300** +- Basic exemption: $3,500 +- Employee rate: 5.95% +- Maximum employee contribution: ~$4,034 + +**CPP2 (second ceiling):** +- Second ceiling: ~**$81,200** +- Rate: 4% on earnings between first and second ceiling +- Maximum CPP2 contribution: ~$396 + +--- + +## EI Premiums — 2026 + +- Maximum insurable earnings: ~**$65,700** +- Employee premium rate: 1.64% +- Maximum employee premium: ~$1,077 +- Quebec rate: 1.32% (due to QPIP) + +--- + +## Household Analysis Patterns + +### Answering "What would [reform] cost/mean for a family?" + +1. **Identify the family**: income, province, number/ages of children +2. **Calculate baseline**: apply current rules to compute total benefits/taxes +3. **Calculate reform**: apply modified rules +4. **Report the difference**: reform minus baseline + +### Example: Doubling the CCB for an Ontario family + +**Family:** 2 parents, 2 children (ages 3, 8), AFNI $80,000, Ontario + +**Baseline CCB:** +``` +Max = $7,997 + $6,748 = $14,745 +Reduction = 13.5% × ($79,845 - $37,487) + 5.7% × ($80,000 - $79,845) + = $5,718 + $9 = $5,727 +Baseline CCB = $14,745 - $5,727 = $9,018 +``` + +**Doubled CCB:** +``` +Max = $15,994 + $13,496 = $29,490 +Reduction = 13.5% × ($79,845 - $37,487) + 5.7% × ($80,000 - $79,845) + = $5,718 + $9 = $5,727 +Doubled CCB = $29,490 - $5,727 = $23,763 +``` + +**Additional benefit = $23,763 - $9,018 = $14,745/year** + +> Key insight: When only the maximum amounts are doubled (not the phase-out rates), the additional benefit equals the original maximum for families whose benefits aren't fully phased out. The phase-out claws back the same dollar amount regardless of the benefit level. + +--- + +## Common Pitfalls + +### 1. CCB Uses Adjusted Family Net Income (AFNI) +AFNI is the combined net income (line 23600) of both spouses/partners. It is NOT individual income. + +### 2. Benefits Use Previous Year's Income +CCB payments from July 2025 – June 2026 are based on **2024 tax year** income. + +### 3. Provincial Programs Stack on Federal +Many provinces have their own child benefits on top of the federal CCB. Always check for provincial supplements. + +### 4. Quebec Is Different +Quebec has its own pension plan (QPP), parental insurance (QPIP), and many unique credits. Don't assume federal rules apply. + +### 5. Indexation +Most thresholds and amounts are indexed annually to CPI. Always verify the year-specific values. + +--- + +## Additional Resources + +- **CRA Benefits Calculator:** https://www.canada.ca/en/revenue-agency/services/child-family-benefits/child-family-benefits-calculator.html +- **PolicyEngine Canada:** https://policyengine.org/ca +- **Variable Explorer:** https://policyengine.org/ca/variables +- **Parameter Explorer:** https://policyengine.org/ca/parameters +- **GitHub:** https://github.com/PolicyEngine/policyengine-canada