Mr. Speaker, I am very concerned over the inequitable tax treatment of Canadian resident recipients of U.S. social security benefits. This is an important issue to many people in my riding of Erie and throughout the country.
It is imperative that the federal government find some way of giving relief to those lower income Canadians who are now subject to a 25.5 per cent withholding tax on their U.S. benefits but not entitled to a tax refund for overpayments.
This policy unfairly penalizes Canadian residents and most, as seniors, at a time in their lives when they can ill afford it. Indeed, many are trying to survive on less than subsistence incomes.
I appreciate that amendments to international treaties require lengthy and laborious negotiations. Nonetheless I implore the finance minister and the government to make every effort to bring needed change to this unfair U.S. tax policy.
The 1996 tax year is rapidly drawing to a close. It is imperative that affected Canadian residents receive confirmation of tax relief. They require this now.