Letter to Minister Jim Flaherty on Labour Fund Tax Credit
Thursday, April 18th, 2013The Honourable Jim Flaherty, PC, MPMinister of FinanceHouse of CommonsOttawa ON K1A 0A6
RE: LABOUR FUND TAX CREDIT
On behalf of the 120 000 members of the Communications, Energy and Paperworkers Union of Canada (CEP), we wish to inform you of our disagreement with the phase-out of the tax credit for small savers who choose to invest in labour funds.
You snuck into the federal budget tabled on March 21st, 2013 the elimination of a tax credit that is very important for the workers of Québec. The 15% tax credit for money deposited in labour investment funds has been a useful and respected tool in this province. Thanks to this tax credit, funds such as the Fonds de solidarité operated since 1983 by the Québec Federation of Labour (FTQ) contribute in multiple ways to develop the economic growth of Québec and create and maintain jobs by investing in businesses within various sectors.
The tax credit also offers a major support to employees of small and medium businesses for whom it is often the only available and accessible tool to save for their retirement. In these times where pension plans are weakened by an unstable economy, the loss of this tax credit will increase the precariousness of the retirement savings of thousands of Quebecers. The cut adds to those already made to the Old Age Security Program that will affect retirees throughout the country.
We believe that the phase-out of the labour fund tax credit is an attack by the Conservative government on the workers of Québec. In fact, of the 350 million dollars to be cut, 312 millions will directly affect Québec. Furthermore, the cut prevents anyone outside Québec from emulating the FTQ by building a similar fund in their province. We are opposed to this cut which was made without a comprehensive examination or consultation and we are forced to conclude that this is a direct attack on the workers of the province of Québec.
We request that you reconsider the decision to phase out the tax credit and thus allow labour funds to contribute as best they can to provincial and national economic growth.
Respectfully yours,Gaétan MénardCEP National Secretary-Treasurer
RD/mb – cope 343
c.c. Prime Minister Stephen Harper; Dave Coles, National President, CEP; Michel Ouimet, Executive Vice-President, Québec, CEP; Michel Arsenault, President, FTQ