Bill C-305 (Historical)

An Act to amend the Income Tax Act (exemption from taxation of 50% of United States social security payments to Canadian residents)

The purpose of this enactment is to reduce from 85% to 50% the inclusion rate on United States social security payments received by Canadian taxpayers.
The “inclusion rate” is the percentage of United States social security payments to be included as income by a Canadian taxpayer. The Canada-United States Tax Convention Act, 1984 provides for 15% of such payments to be non-taxable in the hands of Canadian residents, thus resulting in an 85% inclusion rate.
This enactment provides for an additional 35% of United States social security payments to be excluded from taxable income. The enactment therefore increases the exemption to 50% and decreases the inclusion rate to 50%.

Income Tax Act

[Jeff Watson, Conservative, Essex, ON]

moved for leave to introduce Bill C-305, An Act to amend the Income Tax Act (exemption from taxation of 50% of United States social security payments to Canadian residents).

Mr. Speaker, this bill is designed to restore tax fairness to Canadians, especially Canadian seniors who worked in the U.S. but lived and invested in our communities across Canada. Ten years ago they received a 70% tax hike. This bill seeks to reverse that. This bill received broad support from members in the last Parliament and was sent to committee. I look forward to their support again to ensure our seniors receive their deserved tax fairness.

(Motions deemed adopted, bill read the first time and printed)