DAWN Ontario: DisAbled Women's Network Ontario

 

Shameful attack by Ottawa on people with disabilities
Small tax credit targeted for cutbacks despite $71 billion in surpluses
NUPGE - national union of public and general employees - Nov. 1, 2002


Ottawa - The National Union of Public and General Employees says it's shameful of the federal government to be cutting back on a tax credit of less than $1,000 a year for Canadians with disabilities when it is projecting surpluses of $71 billion over the next six years.

"We are outraged that the federal government would even consider such a move," says National Union president James Clancy.

"Yet that is exactly what is happening. The Department of Finance has instructed the Canada Customs and Revenue Agency (CCRA) to conduct an arbitrary review of eligibility for the federal disability tax credit (DTC).

"This affects more than 100,000 Canadians with disabilities, forcing them to endure a lengthy and costly process in order to re-qualify for the DTC. We view the CCRA’s attempt to haul back this very small tax credit, and the little support it provides for people who are among the most vulnerable in our society, as a very unfair and punitive measure," Clancy said.

CLC vice-president denounces move

Derek Fudge, national director of policy development for NUPGE and also the Canadian Labour Congress vice-president for people with disabilities, joined Clancy in denouncing the move.

"To make matters worse, the finance department is proposing changes to the Income Tax Act that will deny even more people with disabilities from qualifying for the DTC," Fudge said.

"People with disabilities already experience much higher rates of poverty than the rest of the Canadian population - in fact, one of three disabled Canadians lives in poverty. These restrictive measures have nothing to do with recognizing the barriers and extra costs associated with an individual’s disability; it’s all about denying Canadians with disabilities access to one of the very few federal government support mechanisms that exist to help them fully participate in Canadian society."

At stake is a maximum annual tax credit of $960. It costs Ottawa less than $360 million a year - or about half of 1% of $71 billion in federal surpluses projected to accumulate over the next six years.

Deliberate harassment

"When these massive surpluses are taken into account, along with an estimated $40 billion in tax cuts that Ottawa has implemented over the last three years, the cutting of this tax credit can only be considered a conscious and appalling decision by the federal government to deliberately target and harass people with disabilities," Fudge said.

The federal New Democratic Party has launched a national letter writing campaign to save the DTC and stop the attack on Canadians with disabilities.

NDP Leader Alexa McDonough released letters this week that will be sent to Prime Minister Jean Chretien calling for the full restoration of the DTC. Ordinary Canadians are being urged to speak out by mailing letters of their own to the prime minister.

A sample letter can be found at the following link on the federal NDP web site:

Printable Letter
http://www.ndp.ca/printforms/disabilityletter.html


Text of sample letter:

Right Honourable Jean Chrétien,
Prime Minister of Canada
Room 309 S
Centre Block
House of Commons
Ottawa, Ontario
K1A 0A6

Care of: Alexa McDonough, MP
House of Commons
Ottawa, ON K1A 0A6


Dear Prime Minister;


Today, I join with thousands of other Canadians in expressing my opposition to your government’s unfair and punitive measures which disallow persons with disabilities the Disability Tax Credit. (DTC)

Last year, your government’s Revenue Agency demanded over 100,000 Canadians re-apply for the DTC which gives Canadians with disabilities some measure of relief from the additional costs incurred from living with a disability. For tens of thousands of Canadians, the cost and difficulty of getting the complex forms properly filled out proved too much and they have lost this tax credit.

To make matters worse, your Finance Minister has proposed changes to the Income Tax Act that will disallow even more people this tax credit. The impacts of these measures are already causing enormous financial hardship for this group of vulnerable Canadians.

One third of Canadians with severe disabilities live in poverty, and at least 40% of Canadians with disabilities are unemployed. Many of the five million Canadians living with disabilities live without economic security due to inadequate income support and rehabilitation programs. Many are not eligible for the DTC because they have no taxable income.

Canadians with disabilities deserve respect and equal citizenship from their government - not harassing bureaucracies and punitive legislation. The Courts, Parliament and disability advocacy groups are all asking for your government to take a more humane and compassionate approach to the definition of disability under the Income Tax Act.

Please withdraw the proposed amendments to the Disability Tax Credit and act on the unanimous recommendations of the House of Commons Committee calling for fairness and effective consultation before any changes to the Income Tax Act are made regarding Canadians with disabilities.

I look forward to your response.

Name__________________________________

Address________________________________

_______________________________________

Phone _________________________________


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This page was updated in Nov. 3, 2002