Harper's New Years Resolution: Increased Poverty
For Immediate Release:
January 9, 2007
Toronto - The Canadian
federal government is claiming that 2007 will be "a good
year for taxpayers". However, Prime Minister Stephen Harper is
actually making it more
difficult for low and moderate income families to
get by, thanks to increased
taxes that target lower income Canadians, says ACORN
Canada (the Association of Community Organizations for Reform Now).
The Conservative government
website proclaims "It's no secret that
Canadians are taxed too much.
We promised Canadians that we would lower their
taxes-and we delivered." As a result of the government's
"lower" taxes, low
income Canadians will be expected to collectively pay $3.2 billion
more income tax than last year.*
"Stephen Harper's
message that taxes are lower is not accurate. The truth is
that increased tax rates are being applied to those earning $35,000 or less.
The government is playing a shell game and people will see right through
it," says Marva Burnett, an ACORN Canada member. "How can the government
say that Canadians are taxed too much, say that this will be a good
year for taxpayers, and then turn around and take over $3 billion from
the pockets of working families?"
ACORN Canada is demanding
justice for low and moderate income Canadians and
an end to taxation that unfairly targets low income families. ACORN Canada
will also be working for change by opening up two financial justice centres
in Toronto and Vancouver to offer free tax preparation services to low
and moderate income Canadians beginning in February.
* The income tax rate
increased by 0.25% over the Christmas holidays from the
2005 rate of 15% on the first $35,595 to 15.25% for the first $36,378 earned.
This amounts to an annual tax increase of $209.00 for many Canadians
already struggling to get by. While the federal government has also
increased the basic tax credit from $8,648 in 2005 to $8,839 in 2006, the
total tax credit for this, which is a non-refundable credit, is only $28.65.
So low income Canadians are still paying $180.35 more ($209 - $28.65)
for their income tax for 2006. According to Statistics Canada, the working
population under $35,000 income for 2004 (the most recent figures) was
15,262,180. This results in an estimated increase of $3,189,795,600 in
extra taxation directed at low- and moderate-income Canadians.
