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Also like the children's tax exemption, the proposed child tax deduction would have a regressive impact because of the income tax system's progressive structure of rising marginal tax rates that are levied on income in the four federal tax brackets (which the Conservatives propose reducing to three):. [...] Figure 1 also shows the distribution of payments under the Canada Child Tax Benefit, assuming the current schedule of increases to July 2007 and indexation of rates to July 2008, as well as the interactive impact of the proposed child tax deduction on the Canada Child Tax Benefit (explained in the next section). [...] While lower-income families would continue to receive the largest child benefits, payments no longer would be rationally related to level of income as is the case under the existing system - i.e., the Canada Child Tax Benefit, with no child tax deduction. [...] The higher the tax bracket of the parent claiming the child tax deduction, the bigger the tax break. [...] Ontario tax savings from the proposed child tax deduction also are generally regressive, but the pattern is somewhat erratic as the federal child tax deduction interacts with Ontario's income tax structure.