The Canadian Taxpayers Federation suggests Ottawa will claw back $340 million in taxes from families.
Although the Conservatives will dish out nearly $3 billion in enriched Child Benefit payments, federal taxes plus another $160 million will be taken back in Provincial taxes.
Roughly half a billion coming from the benefit will wind up back in the pockets of governments.
The payments are to help families and stimulate the economy.
The Universal Child Care Benefit is a taxable benefit created by the Conservative government from the old child-benefit system.
The former benefits provided Canadian parents with $100 a month for every child under six. But now the benefit will see a boost as part of new allowances outlined in the federal budget earlier this year.