How can a tax measure that only benefits 12% of seniors, but leaves the other 88% out in the cold be considered a Tax Fairness Plan? How can alleging tax leakage without PROVING tax leakage, such that it causes the loss of $35 billion of Canadians’ pension savings be considered a Tax Fairness Plan?
Mr. Paul Szabo (Mississauga South, Lib.): Mr. Speaker, the Prime Minister broke his promise never to tax income trusts and imposed a 31.5% punitive tax.
He wiped out over $25 billion of retirement savings of over 2 million Canadians, particularly seniors.
He argued that the pension income splitting would offset the loss, but the facts show otherwise.
In 2007, the benefit to seniors was only $163 million. As well, only 30% of seniors have qualifying pensions. If we eliminate those who have no partners or who are at the lowest tax bracket or whose partner is in the same tax bracket, then only 12% of seniors actually benefit.
The Conservatives took money from seniors with no pensions and gave a fraction of that money to high-income-earning seniors who have a partner with little income.
It is time for the government to be honest with seniors. It should admit its devastating mistake, apologize for misleading seniors and repeal the punitive 31.5% tax on income trusts.
Tuesday, June 9, 2009
Posted by Fillibluster at 10:39 PM