Liberals accused of diabetes tax grab

OTTAWA Health groups joined forces on Sunday with the Conservative opposition to accuse the Liberal government of trying to raise tax revenue on the backs of vulnerable diabetics.

The accusation opened a new front in the ongoing opposition waged war on government taxation policy, amid the backdrop of the conflict-of-interest controversy dogging Finance Minister Bill Morneau over whether he’s properly distanced himself from millions of dollars of private sector assets.

Diabetes Canada was among the groups that joined Conservative politicians to publicly denounce what they say is a clawback of a long-standing disability tax credit to help them manage a disease that can cost the average sufferer $15,000 annually.

Conservative finance critic Pierre Poilievre branded it as one more example of an out-of-touch Liberal government that he characterized as unfairly targeting the hardworking middle class people it claims to support.

“His tax department tried to tax the employee discounts of waitresses and cashiers. Now his government is targeting vulnerable people suffering with diabetes with thousands of dollars in tax increases,” Poilievre said on Sunday at a Parliament Hill news conference flanked by fellow Conservative critics, a young diabetic constituent and a top official with a leading diabetes advocacy organization.

In May, the revenue department stopped approving a disability tax credit for people with Type 1 diabetes for those who had previously claimed it, he said.

People who need more than 14 hours per week for insulin therapy, and had a doctor’s certification previously qualified. But other than citing a spike in applications for the benefit, the government offered no explanation for the change during initial interactions earlier this spring, said Kimberley Hanson of Diabetes Canada.

Thousands of claimants from across Canada who had previously been given the $1,500 annual benefit have been rejected in recent months, but Hanson said she can’t get an exact number from Canadian Revenue Agency and has had to file an Access to Information request to find out.