Tories pledge new tax cut for seniors
OTTAWA— Conservative Leader Stephen Harper rejected critics who object to his approach to boutique tax credits and announced a new targeted tax measure to win support of Canada’s aging population as he campaigns for re-election.
Harper said Tuesday a re-elected Conservative government would offer a new tax credit to seniors who are single or widowed that could shave an extra $300 annually off their tax bill at an annual cost to the federal treasury of $397 million.
Harper unveiled the new promise at a campaign event in North Vancouver, saying the proposed Single Seniors Tax Credit could be combined with an existing tax credit and together would add up to about a $600 annual savings for “our most vulnerable seniors.”
Susan Eng, a spokeswoman for a national non-profit advocacy group on seniors’ issues, welcomed the promise in a written statement.
“Some of our members have told us that because they are single they are unable to get tax relief by splitting their pension income for tax purposes like their married friends. Single seniors, usually women, will welcome this news, especially those who are caring for a dependent such as an adult child or parent,” said Eng, of the Canadian Association of Retired Persons (CARP), now known as New Vision of Aging for Canada
Seniors may already claim the Pension Income Credit, a federal nonrefundable tax credit on up to $2,000 of eligible pension income. The credit applies to different forms of private pension income, but does not apply to CPP or OAS payments. On a federal tax bill, it means the actual saving is 15 per cent on up to $2,000 of pension income, or $300. There are provincial tax savings on top of that.
The newly promised Single Seniors Tax Credit would be an additional measure to allow a senior to shield even more pension income from taxation. It is a non-refundable 15-percent tax credit on eligible income up to $2,000. The Conservative Party says it would help about 1.6 million seniors.