People with disabilities concerned proposed Liberal bill will hike federal taxes
Advocacy groups are asking the federal Liberal government to adjust its proposed tax bill to ensure people with disabilities don't end up paying more to the Canada Revenue Agency.
Inclusion Canada says it favours Ottawa lowering the lowest marginal tax rate from 15 to 14 per cent, as proposed in the bill that passed first reading earlier this month.
However, the group says the unintended result of the change is that tax credits for people with disabilities will decrease in many cases.
That's because the credit — used to reduce taxes payable — is generated by a formula that is tied to the marginal tax rate, and by dropping that rate to 14 per cent, the credit shrinks.
Krista Carr, the CEO of Inclusion Canada, said in a telephone interview Monday "we're really hoping this is something that will be remedied, but as of yet we've not had a response."
The lobby group says without this change, many lower income people with disabilities who rely on the tax credit will be paying about $100 a year more to Ottawa.
The March of Dimes, an organization that also works on behalf of people with disabilities, says in a release that families with children with disabilities would lose an average of about $156 per child.
The federal Finance Department didn't immediately provide a comment on the groups' request for the change to the bill.
The Liberals have said reducing the marginal tax rate will save two-income families up to $840 a year in 2026. Ottawa has also noted that beginning in July eligible Canadians can receive up to $2,400 a year from the Canada Disability Benefit.
Carr said people with disabilities will lose money in the tax credits "that are fundamentally important to them as it helps offset the expenses related to disabilities."
She argues the simple fix is to amend the bill to keep the marginal tax credit rate at 15 per cent, "just for the calculation of these particular tax credits."
Carr also said tax credits on medical expenses will also be affected, and that could further add to the tax bill for people with disabilities.
Nicholas Taylor, a resident of Cooks Brook, N.S., said in an interview Tuesday that the extra $100 in taxes would be roughly equivalent to a month of medication costs.
The 39-year-old has polyneuropathy — a condition that where peripheral nerves in the body are damaged — which limits Taylor's mobility and requires the use of a wheelchair.
"For myself, that's a month's worth of medication. I'm diabetic and the blood strips that I have to purchase, they're also about $100 for a package," Taylor said.
With tax payments annually of about $450 on $12,000 in income, Taylor estimates the extra $100 the changes may cost him represents a 25 per cent tax increase.
"We need people with disabilities to be consulted before policies like this are brought in," Taylor added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Vancouver Sun
38 minutes ago
- Vancouver Sun
Allow total foreign ownership of domestic-only Canadian airlines: Competition Bureau report
Canada should allow up to 100 per cent foreign ownership of domestic-only airlines in a bid to lower fares and boost flight options, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but has owners outside its borders, opening the gate to global expertise — and cash. The current foreign ownership cap sits at 49 per cent, with sovereignty and national security often cited as the reason. In addition, no more than 25 per cent of a domestic carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices, service quality and range of flight choice. Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. The watchdog proposed working with other countries to remove foreign competition restrictions in international agreements. The National Airlines Council of Canada, which represents the country's largest carriers, took issue with that, as did airports. 'Cabotage is not the answer to competition in a country as sparse and large as Canada. A foreign carrier is not going to service our smallest towns and thin volume routes,' said Monette Pasher, president of the Canadian Airports Council, in a release. Some experts agreed, arguing that opening the hatch to foreign operators would invite more competition on big routes but do little for thinly served remote communities or even small cities. 'Would I fly into Yarmouth? Would I fly into Prince Albert? Would I fly into Whitehorse? No, not a chance. There's not enough traffic there,' said John Gradek, who teaches aviation management at McGill University. 'They want the low-hanging fruit … Ottawa to Montreal, Toronto to Calgary, Edmonton to Vancouver, because that's where all the money is.' Gradek said greater access to the Canadian market should come with conditions, such as a commitment to fly certain regional routes — and reciprocal access to markets in those airlines' home countries. Direct government support akin to a per-passenger subsidy on those far-flung routes is another option, said Gabor Lukacs, president of the Air Passenger Rights advocacy group. Western University professor Geraint Harvey warned about 'dysfunctional outcomes' that could arise from new players, especially state-owned carriers like Qatar Airways and Emirates that enjoy hefty subsidies. 'They can hollow out the market — they can dominate certain routes by offering lower fares,' he said, noting that more competition could ultimately result in less, if domestic airlines are elbowed out of the market. The report recommended a basket of reforms that include reviewing the airport funding model, enhancing the role of smaller airports and shoring up service to remote communities, particularly in the North. Currently, airport infrastructure costs fall largely on travellers under a user-pay model. Extra charges such as airport fees, fuel taxes and security and navigation charges comprised 30 cents of every dollar that passengers paid for tickets in 2023 compared with 25 cents in 2019, the study said. 'They are currently biased against smaller airlines,' said Keldon Bester, executive director of the Canadian Anti-Monopoly Project, stressing that high fees put otherwise cheap flights out of reach for demographics that discount carriers rely on. Air Canada spokesman Peter Fitzpatrick said the trend 'highlights how high government fees and charges raise airfares in Canada, hurting consumers and the competitiveness of our industry.' The country's largest airline has said Canada remains at least as competitive as markets such as the United States and European Union and that the share of domestic passengers on markets served by three or more carriers has shot up over the past decade _ though the number of routes has gone down. Over the past 20 months, four low-cost carriers have disappeared from the skies, as Lynx Air and Canada Jetlines shut down and WestJet folded subsidiary Swoop and the recently acquired Sunwing Airlines into its main-line service. Canada is a noted graveyard for budget carriers. Six foundered here between 1995 and 2015: Greyhound Air, Roots Air, Air Canada's Zip, Jetsgo, Zoom Airlines and CanJet. While the country's biggest cities remain amply served, smaller destinations have fewer options, which can also result in higher prices and, when things go awry, stranded passengers. The Calgary-Saskatoon route saw flights fall 39 per cent to 412 last month compared with 673 in May 2019, now that the route between Alberta and Saskatchewan's two biggest cities is served with non-stop flights by only WestJet, according to aviation data firm Cirium. Air Canada pulled out of the route over two years ago. The report noted that routes served by just one airline tended to be more expensive. 'Our research shows that when just one new competitor flies on a route between two cities, airfares go down by nine per cent on average,' the report said. The report also proposed a working group to ramp up service to the North, where air transportation is an 'essential lifeline, even for residents who never fly' but whose food and medicine arrive by plane. It further called for an end to the transport minister's power to green-light mergers and acquisitions deemed anticompetitive by the Competition Bureau. And it urged industry-wide publication of data on delays and cancellations to help consumers make informed choices, on par with the United States and United Kingdom. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Edmonton Journal
40 minutes ago
- Edmonton Journal
Allow total foreign ownership of domestic-only Canadian airlines: Competition Bureau report
Article content Canada should allow up to 100 per cent foreign ownership of domestic-only airlines in a bid to lower fares and boost flight options, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but has owners outside its borders, opening the gate to global expertise — and cash. Article content The current foreign ownership cap sits at 49 per cent, with sovereignty and national security often cited as the reason. In addition, no more than 25 per cent of a domestic carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. Article content 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices, service quality and range of flight choice. Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. The watchdog proposed working with other countries to remove foreign competition restrictions in international agreements. Article content The National Airlines Council of Canada, which represents the country's largest carriers, took issue with that, as did airports. 'Cabotage is not the answer to competition in a country as sparse and large as Canada. A foreign carrier is not going to service our smallest towns and thin volume routes,' said Monette Pasher, president of the Canadian Airports Council, in a release. Some experts agreed, arguing that opening the hatch to foreign operators would invite more competition on big routes but do little for thinly served remote communities or even small cities. 'Would I fly into Yarmouth? Would I fly into Prince Albert? Would I fly into Whitehorse? No, not a chance. There's not enough traffic there,' said John Gradek, who teaches aviation management at McGill University. 'They want the low-hanging fruit … Ottawa to Montreal, Toronto to Calgary, Edmonton to Vancouver, because that's where all the money is.' Article content Gradek said greater access to the Canadian market should come with conditions, such as a commitment to fly certain regional routes — and reciprocal access to markets in those airlines' home countries. Direct government support akin to a per-passenger subsidy on those far-flung routes is another option, said Gabor Lukacs, president of the Air Passenger Rights advocacy group. Western University professor Geraint Harvey warned about 'dysfunctional outcomes' that could arise from new players, especially state-owned carriers like Qatar Airways and Emirates that enjoy hefty subsidies. 'They can hollow out the market — they can dominate certain routes by offering lower fares,' he said, noting that more competition could ultimately result in less, if domestic airlines are elbowed out of the market. The report recommended a basket of reforms that include reviewing the airport funding model, enhancing the role of smaller airports and shoring up service to remote communities, particularly in the North. Article content Currently, airport infrastructure costs fall largely on travellers under a user-pay model. Extra charges such as airport fees, fuel taxes and security and navigation charges comprised 30 cents of every dollar that passengers paid for tickets in 2023 compared with 25 cents in 2019, the study said. 'They are currently biased against smaller airlines,' said Keldon Bester, executive director of the Canadian Anti-Monopoly Project, stressing that high fees put otherwise cheap flights out of reach for demographics that discount carriers rely on. Air Canada spokesman Peter Fitzpatrick said the trend 'highlights how high government fees and charges raise airfares in Canada, hurting consumers and the competitiveness of our industry.' The country's largest airline has said Canada remains at least as competitive as markets such as the United States and European Union and that the share of domestic passengers on markets served by three or more carriers has shot up over the past decade _ though the number of routes has gone down. Article content Over the past 20 months, four low-cost carriers have disappeared from the skies, as Lynx Air and Canada Jetlines shut down and WestJet folded subsidiary Swoop and the recently acquired Sunwing Airlines into its main-line service. Canada is a noted graveyard for budget carriers. Six foundered here between 1995 and 2015: Greyhound Air, Roots Air, Air Canada's Zip, Jetsgo, Zoom Airlines and CanJet. While the country's biggest cities remain amply served, smaller destinations have fewer options, which can also result in higher prices and, when things go awry, stranded passengers. The Calgary-Saskatoon route saw flights fall 39 per cent to 412 last month compared with 673 in May 2019, now that the route between Alberta and Saskatchewan's two biggest cities is served with non-stop flights by only WestJet, according to aviation data firm Cirium. Air Canada pulled out of the route over two years ago. Article content The report noted that routes served by just one airline tended to be more expensive. 'Our research shows that when just one new competitor flies on a route between two cities, airfares go down by nine per cent on average,' the report said. The report also proposed a working group to ramp up service to the North, where air transportation is an 'essential lifeline, even for residents who never fly' but whose food and medicine arrive by plane. It further called for an end to the transport minister's power to green-light mergers and acquisitions deemed anticompetitive by the Competition Bureau. And it urged industry-wide publication of data on delays and cancellations to help consumers make informed choices, on par with the United States and United Kingdom. Article content Latest National Stories
Calgary Herald
40 minutes ago
- Calgary Herald
Bruce Starlight honoured for work in preserving Tsuut'ina language with postage stamp
Starting June 20, Canadians buying stamps for their mail will notice new faces on the postage — including that of Indigenous leader Bruce Starlight. Article content Starlight will have his face on a stamp, alongside Julia Haogak and Sophie McDougall, as tribute for their work in preserving the culture and languages of their Inuit, Metis and First Nations communities. Article content Article content The stamps are to be unveiled separately, with the one featuring Starlight unveiled Thursday at the Seven Chiefs Sportsplex and Jim Starlight Centre in Tsuut'ina Nation. Article content The stamps featuring Haogak and McDougall were unveiled June 13 and 17, respectively. Article content Article content 'Not everybody gets the honour to be put on a postage stamp,' Starlight said during Thursday's unveiling. Article content One of the last remaining fluent speakers of the Tsúut'ínà language, Starlight founded an institution in 2008 dedicated to instructing others in the language and developing materials for Tsúut'ínà instruction, including dictionaries and recordings. He served numerous roles since the 1970s as councillor, language commissioner for the Tsúut'ínà chief and council, and the first elected Indigenous director on the Calgary Stampede board of directors. After his retirement in 2022, he continued to advocate and advise on Indigenous issues. Article content His most recent contribution is a collaboration on a collection of traditional narratives and historical accounts in Tsúut'ínà and a Tsúut'ínà-to-English glossary. Article content Article content 'There's very few of us left,' he said, of those who can speak the language. 'And of the 24, only 12 of us can get around. So we're saving an actual dead language.' Article content Article content Tyler Thomas, director of Indigenous and Northern Affairs at Canada Post, said the unveiling comes as part of the company's annual initiative to release an Indigenous leader stamp series. Article content Now in its fourth year, the company works with the Assembly of First Nations, Metis National Council and the Inuit Tapirit Kanatami to identify individuals worthy of being placed on the stamps. Article content
