Liberals facing backlash over loss of ‘Harper-era’ tax credits

It’s only one of many changes announced in Tuesday’s Federal budget, but the loss of some “Harper-era” tax credits is facing backlash.

Prime Minister Justin Trudeau, along with Finance Minister Bill Morneau, revealed that the Children’s Fitness Tax Credit and Children’s Arts Tax Credit will soon be gone, along with tax credits for textbooks and the Education Tax Credit will be eliminated by 2017.

READ MORE: Trudeau eliminates Harper-era tax credits

Their removal has some people up in arms.

WATCH: ‘This budget is a nightmare scenario’: Rona Ambrose reacts to Federal budget 

1:13 ‘This budget is a nightmare scenario’: Rona Ambrose reacts to Federal budget

Opposition leader Rona Ambrose believes “this is going to be an expensive government for the middle class.”

“We see families losing the education tax credit, we see families losing the arts tax credit, the fitness tax credit for kids. All of those things are things families need,” she said during Question Period on Tuesday.

“So I do not think this is a good day for the middle class.”

Ambrose isn’t the only one with questions about the Liberals’ first budget.

https://twitter.com/Trucker_Ty_/status/712379951400419328

But Paul Ferly, assistant chief economist at RBC, says while there will be some who are “adversely effected by the changes,” his first impression is that the impact to the economy “will be relatively small.”

And Ian Lee, professor at the Sprott School of Business at Carleton University, told Global News these types of credits weren’t helping the economy in the long run.

“These are things that don’t enhance the productivity or efficiency of the economy. They diminish it, albeit in very small ways,” said he told Global News.

Tweet This Click to share quote on Twitter: "These are things that don't enhance the productivity or efficiency of the economy. They diminish it, albeit in very small ways," said he told Global News.

He added that “when you get rid of these tax credits, you’re freeing up money.”

Some of that money is being directed into larger benefits programs targeted at bigger groups.

Instead of the education and textbook credits, post-secondary students will see a 50 per cent increase to the Canada Student Grants program, which will most benefit lower-income families.

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*With files from Global News’ Leslie Young.