Harper’s government targeting poor seniors on guaranteed income : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Harper’s government targeting poor seniors on guaranteed income

August 27, 2014

Harper’s government targeting poor seniors on guaranteed income

Halifax, NS (RPRN) 08/27/14 — Under proposed changes to prescribed annuity taxation, Canadian poor seniors will pay a lot more taxes. These changes are hidden in the proposal for changes in the exemption test of life policies modifying Subsection 300(2) of the Income Tax Regulations. Under current regulations, the taxable income portion of a prescribed annuity is determined using the 1971 Individual Mortality table. The Financial Services Consumer Alliance (FSCA) has discovered that after December 2015, the new regulations would require that insurers use the Annuity 2000 Basic Mortality table. 

What does this all mean? It means that the taxable portion of new annuity payments will increase as a result of this change. Particularly affected will be older and poor seniors on guaranteed income. “This is the equivalent of taxing the life expectancy of an individual,” stated Richard Proteau, President of FSCA. “These mortality tables represent the aggregate of the life expectancies for the whole Canadian population but inequalities are increasing in the Canadian society and this means that a rich senior can expect to live 5 years longer than a poor senior.”

http://www.theglobeandmail.com/life/health-and-fitness/rich-v-poor-the-lives-we-can-expect-from-our-income/article793139/

As a result of this difference in life expectancy between the poor and the rich, the probability is that poor seniors 80 and above will be taxed on the capital they invest into an annuity while rich seniors get only taxed on the income generated by the capital invested in the annuity. To view the magnitude of the changes see our analysis at:

http://911insurance.wordpress.com/2014/07/25/proposed-changes-to-prescribed-annuity-taxation-the-truth-is-in-the-numbers/

“What is disturbing is to see a major change to the Income tax Act hidden into another proposal for a change in legislation,” continued Richard Proteau. “This demonstrates how undemocratic and unaccountable the Harper’s government has become. What also makes me angry is that the Harper’s government, in the last budget, voted and approved a bailout package for rich Canadians who were involved into tax avoidance and tax cheating using a scheme developed by the insurance industry called the 10/8 concept. I supposed somebody had to pay for this and with the perverse logic used by the Harper’s government, poor seniors on guaranteed income should pay more taxes and pay for the abuses of the rich fraudsters. Truly it gives a new meaning to the notion of a balanced budget…”

Financial Services Consumer Alliance

The Financial Services Consumer Alliance (FSCA) is a national alliance of consumers created exclusively to defend and promote the specific rights and interests of consumers who have purchased a financial product.

Media Contact Name: Richard Proteau
Media Phone: 902-331-1938
Media Web Address: www.consumerights.ca
Click here to see all news from this author/company

Filed Under: BUSINESS NEWS, CANADIAN NEWS, Health and Fitness, Politics, PRESS RELEASE

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Newborn Foundation Selected Among First 
Global Innovation Fund Grant Recipients

Saint Paul, MN 02/09/16 · Announcement at GIF launch event in London highlights...

The Gamifiers Partners With Livecube to Bring Gamified Event Engagement to the Middle East

DUBAI/NEW YORK 02/02/16 · TECH NEWS - The Gamifiers, the leading specialized gamification...

Rugby North to Launch Canada’s First Professional Rugby League

Toronto, ON 02/02/16 ·  The country that introduced rugby to North America...

Dominion Lending Centres Edge Financial Welcomes New Mortgage Agents On Board

Toronto, Ontario 01/27/16 · The mortgage agents behind the site GTAMortgagePros.com  –...

Black Films Matter supports Movie Binges on Oscar Night

HOLLYWOOD, CA 01/26/16 · The Advocacy group Black Films Matter is supporting...

The Big Freeze: America Due Extreme Snowstorms

NEW YORK 01/23/16 · Founder of GridLocate.com, offers advice to US residents...

Clean the world Canada choisit Moisson Montréal

Montréal, Québec 01/05/16 · Clean the World Canada choisit Moisson Montréal comme...

All I Want for Christmas is for Trump to Shut Up is Island's new National Anthem

Cambridge, Mass 12/22/15 ·  A satirical Christmas song poking fun at real...

Gotham City Networking, Inc. Honors Raj Goel with Networker of the Year Award

New York, NY 12/16/15 · On Wednesday, December 2nd, Gotham City Networking, Inc....

Brainlink International Received Renowned Award for a Corporate SOP Culture That Outshines the Rest

New York, NY 12/15/15 · On Thursday, December 3rd, 2015, SmartCEO awarded Brainlink...

Livecube Enhances Its Social Engagement App to Be a Single Dashboard for Event Organizers

NEW YORK 12/03/15 · Enhanced features include real-time direct chat between attendees,...

MLBC offers new IFRS consulting service

Toronto, Ontario 12/01/15 · MLBC offers new IFRS consulting service New IFRS accounting...

For a fistful of dollars two gangs continue to fleece innocent families

Dallas, Texas 12/01/15 · Jaime Escalona speaking on behalf of COViSAL denounces...