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

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

This bill was previously introduced in the 40th Parliament, 2nd Session.

Sponsor

Joe Comartin  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Introduced, as of May 15, 2009
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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%.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Income Tax ActRoutine Proceedings

May 15th, 2009 / 12:05 p.m.
See context

NDP

Joe Comartin NDP Windsor—Tecumseh, ON

moved for leave to introduce Bill C-387, 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 is a bill that, interestingly enough, first surfaced in this chamber from the current Minister of Citizenship, Immigration and Multiculturalism. It has been reincarnated on a number of occasions by myself and the member for Essex. It would redress a gross injustice to people who receive social security benefits while living in this country.

The former Liberal government made a major change, which I believe was a grossly improper one. This would rectify it so that the social security payments received in Canada would be treated the same as the Canada pension plan benefits that are received in the United States and taxed there by that government.

Right now, we are substantially overtaxing these benefits received by Canadians living in Canada but receiving social security benefits from the United States.

I would also thank my seconder, the member for Burnaby—Douglas.

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