Mr. Speaker, I would also like to thank the member for Essex for moving this private member's bill. It certainly speaks to the heart of what we need to do for seniors in his community and my community. The member for Burlington spoke so eloquently about the relationship we have with the United States, in terms of tax treaties, and what we need to do to help our seniors here in our country. So, it is much appreciated.
I welcome the opportunity to speak to the bill put forward by the member for Essex, in that the bill would exempt from taxation 50% of the U.S. social security benefits received by taxpayers here in Canada. Currently, the exemption is only 15%.
Bill C-305 would amend subsection 81(1) of the Income Tax Act. This part of the act provides that certain items shall not be included in calculating the income of a senior or a taxpayer for a taxation year. The amendment would add to this category a couple of items and, thus, exempt from income tax 35% of the aggregate of all benefits paid by the United States government as a benefit under U.S. social security legislation. The amendment also makes clear that this 35% exemption would be in addition to the 15% exemption provided by paragraph 5(a) of article XVIII of the treaty.
It is estimated that approximately 90,000 Canadians receive U.S. social security benefits, of whom approximately 53,000 earn sufficient income to be liable for tax. The bill would affect the taxation of certain pension payments and would grant an additional 35% exemption in the case of U.S. social security benefits.
The bill is really about the taxation of retirees in Canada and this is an important subject. This is such an important subject because we owe it to Canadian seniors to provide a coherent and comprehensive approach to how their income is treated. I commend the hon. member for Essex for bringing this bill forward. I know that the member shares the same strong commitment to Canadian seniors as I do. This commitment to seniors in his riding and throughout our country is certainly to be commended. We owe our seniors a great deal and when we have the opportunity to extend something as simple as tax relief, we have to do that.
We are fortunate to have a new government that is committed to tax relief. We are committed to tax relief for all Canadians, but especially for seniors and retired Canadians who currently receive a pension.
The relief would benefit nearly 2.7 million taxpayers who receive eligible pension income, providing up to $155 per pensioner. I am speaking about Canada's new government's promise to double the pension income amount to $2,000. We would also take about 85,000 of those same pensioners off the tax rolls.
Many of our seniors who would benefit from Bill C-305 live near our borders, so they, and Canadians, want safer streets. We want to protect Canadian families and communities, to secure our borders, and to increase our preparedness to address public health threats.
It is as important for seniors to feel safe and secure in their homes and their communities as much as it is for them to feel tax relief. Canada's new government has introduced a number of measures in this House to tackle crime, including mandatory sentencing and house arrest to name a few.
One very important feature of making our streets safer is the commitment made in budget 2006. The budget earmarks funds giving the RCMP the tools and people it needs to strengthen its federal policing role. Budget 2006 includes $26 million to give victims a more effective voice in the federal corrections and justice system, and to give victims greater access to services. In every riding in our country, seniors have been victims in criminal acts. This funding would help ensure that they have a voice in our justice system.
There is an organization called Grand-PARENTING AGAIN Canada which was formed for grandparents across the country who, for one reason or another, become caregivers to their grandchildren. It happens across the country, not always for great reasons but it happens.
The proposed bill, along with the universal child care supplement, will help grandparents who face the tough issue of bringing up their grandchildren. With over 23,500 seniors in my riding, any time I have the opportunity to stand and promote a bill that has their interests at heart, I will not hesitate to do so.
The issue dealt with in the bill is an important one, as are all issues that relate to the taxation of retirees. Once again, I commend the hon. member for his commitment to seniors and retired Canadians and certainly wish him every success with the bill.
I want to add one final note. If everyone recalls the movie that starred Tom Cruise called Jerry McGuire, at one point actress Renée Zellweger, responded to a long speech by Tom Cruise, said, “You had me at hello”. The member for Markham—Unionville had me at hello, except that he went on to speak against all the tax advantages that were given to seniors with respect to GST and tax credits in the budget, which disappointed me. I am glad he is supporting it, but he only needed to speak about half as long as he did. I think we all would have been happier on this side of the House.
