CARP RESPONDS TO MINISTER FLAHERTY’S NEW PACKAGE ON INCOME TRUSTS WITH PRAISE – AND SOME CONCERN
CARP commends Minister Jim Flaherty for adopting a prudent approach to his new policy regarding Income Trusts. On the one hand, the new Income Trust tax regime will be a blow to many seniors because of the high rate of returns Income Trusts provide – sometimes with a high risk. However, it is welcomed news that current Income Trusts will be exempt from the new tax regime until 2011. This will provide investors with four years to adjust to their new circumstances.
CARP is especially pleased that the Minister has balanced his Income Trust initiative with permitting Pension Splitting as of 2007. This is an issue that has been high on CARP’s advocacy agenda. In fact, an intensive campaign that brought together 22 national organizations representing over 2 million seniors was led by Dan Braniff, Chairman of CARP’s Georgian Bay Chapter.
It is also good news for low and moderate-income seniors that the Age Credit Amount will be increased from $4066 to $5066 retroactive to January 1, 2006.
CARP now urges the Minister to launch a comprehensive review of the entire public and private pension system to ensure quality of life for all seniors. Indeed, CARP looks forward to working with the Government on this much-needed undertaking.
CARP is Canada’s Association for the Fifty-Plus. A non-profit organization
with 400,000 members across the country, close to 1 million readers of its
magazine, CARP FOR THE FIFTY-PLUS, and 350,000 unique visits per month on
its websites, CARP’s mandate is to promote and protect the rights and
quality of life for older Canadians. CARP works for the benefit of Canada’s 11
million 50plus population.