I was disappointed to read the article in the TJ on Feb. 3, about our MP, Karen Vecchio, and her decision to vote against Bill C-2.
I hope that residents of St Thomas understand that Karen is going to vote against a bill which will reduce the middle class tax rates for all Canadians from 22% to 20.5%, because she wants to keep the tax-free savings accounts at current levels for the wealthy. I am not sure how this helps the middle class and families in St. Thomas and the region.
Karen is voting against Bill C-2 and because the Liberals are implementing a campaign pledge to reduce the tax-free savings account from $10,000 to $5,500 a year. It is a tax free haven that is primarily of benefit to only the wealthy. We have people in Elgin Middlesex London who are out of work, work several part-time jobs to make ends meet, people need retraining, housing and many of the jobs that are available just don’t pay what they used too with little or no raises each year. There are also many stresses on families today, and people have hard choices to make about how to pay for rent, mortgages, food, car, gas, kids, kids extracurricular activities etc.and then hopefully have enough to save for RSP’s., There isn’t much left over after all of this. And somehow the majority of us are supposed to put money into a tax-free savings account. Now don’t get me wrong, if you have the money to put into a tax-free savings account, then that is great. But this policy change it isn’t the great injustice that Karen is promoting.
What Karen failed to mention is that while the annual amount was reduced from $10,000 to $5,500 in 2016, it has historically been at the $5,500 range from 2009 to 2014, with last year being the only year it was at $10,000 (which just happened to be an election year).The Liberals are not getting rid of the program, just taking it back to historic levels. In addition, the accumulated contribution room since 2009 has not changed and you aren’t losing it. Yet Karen suggests that it is all going away and that it will hurt families. It simply is not a fair and accurate debate.
The truth is that the Liberal government would rather reduce the tax-free savings account limit back to historic levels, which will generate an estimated $80 million dollars that can then be used to benefit everyone in this riding and country, and not just the wealthy. It can go to infrastructure, job training, hospitals and health transfers, low-income housing, day care etc…It is a change that will benefit everyone.
I am disappointed to see that Conservative MP Karen Vecchio is going to vote against a tax cut for the middle class so she can protect the interest of the wealthy.
President Federal Liberal Elgin Middlesex London Riding Association