- Low Income Seniors
Low income seniors need your help – take one minute and send an email – that’s all.
Thanks to the 2008 budget - the tax free savings account may help head off future problems.
But low income seniors still lose 25% their savings in addition to income taxes on RRSPs, is that fair?
If they hadn’t bought RRSPs they would not lose a quarter of their savings. The government has enticed them to buy RRSPs by offering a tax refund and then confiscates ¼ of that money when they withdraw it.
This “bait” and “trap” policy used by Canada on the most defenceless in our society is a shame!Low income workers buy an RRSP and get 25% tax refund. When they withdraw the RRSP they pay back the 25% taxes (so far that’s fair). That RRSP withdrawal is classed as ‘income’ on their tax return. The following year those low income seniors have their GIS reduced by 25 cents for every dollar of ‘income’ from their Guaranteed Income Supplement. (Guaranteed Income Supplement is assistance for the lowest income people over age 65 to help provide a minimum standard of living.) It shouldn’t be used to rob seniors of their meagre savings, especially when those who by-pass RRSPs are not trapped this way!
This only impacts people who have only a few hundred or a few thousand dollars saved. Seniors with large savings wouldn’t qualify for low income assistance anyway.
NOTE: This is not politically motivated as Governments and Opposition Parties of all stripes have allowed this gouging of low income seniors savings for decades. Please help stop it now.
PLEASE FORWARD THIS EMAIL TO EVERYONE YOU KNOW. THIS IS SO UNFAIR.
The Low Income Seniors Need Your Help petition to Low Income Seniors was written by Andre and is in the category Miscellaneous at GoPetition.