OTTAWA – “The Conservative Party of Canada promised to protect seniors’ incomes,” says Leon Benoit, Member of Parliament for Vegreville-Wainwright. “Last week’s announcement by Finance Minister Jim Flaherty followed through on that promise.
Our plan will provide over $1 billion annually in new tax relief to Canadian pensioners and seniors through two major new initiatives. “
Benoit went on to explain that there are two major changes: first, a major improvement in tax policy for pensioners, allowing them to split their pension income beginning in 2007; and second, increasing the Age Credit Amount by $1,000 from $4,066 to $5,066 effective January 1st, 2006. “These two measures will significantly enhance income for low- and middle-income seniors and pensioners,” states Benoit.
“The Finance Minister is well aware that some corporations have felt the impact of his announcement,” confirms Benoit. “And he made it clear that he regrets that. However, it is to his credit that these changes were kept confidential before they were announced publicly – unlike the way the Liberal party tipped off their Bay Street corporate friends last year.”
“The fact is, there were unforeseen changes occurring in the market that the government of Canada, in all good conscience had to deal with,” continues Benoit. “We saw the beginning of the conversion of major corporations to income trusts, which would have resulted in those corporations paying no taxes whatsoever. This would have then shifted the tax burden to ordinary Canadians and that situation is not acceptable to me, nor to my Government.”
Overall, the Conservative plan will:
- ensure that big corporations pay their fair share of taxes;
- keep taxes from going up for individuals and taxpayers;
- provide $1 billion of new tax relief annually for seniors and pensioners; and
- increase significantly the incentive to save and invest for family retirement security.
The Conservative Tax Fairness Plan will ensure that corporations and income trusts are able to operate on a level-playing field. “All new income trusts will be subject to the changes we have announced beginning January 1st, 2007,” explains Benoit. “And
existing trusts will have a four-year transition period where they won’t be
subject to a distribution tax until January 1st, 2011.”
For more information: (613) 992-4171 or (780) 763-6130
