CARP, Canada’s Association for the Fifty-Plus today commende finance minister Jim Flaherty for adopting what it calls “a prudent approach to his new policy regarding income trusts.”
CARP said 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 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 said.
CARP said 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, anintensive campaign that brought together 22 national organizations representing over 2 million seniors was led by Dan Braniff, Chairman of CARP’s Georgian Bay Chapter.
CARP added that it is 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.