Message For Canada – May 2008

Budget 2008 Rewards Canada’s Hard-Working Seniors

Canada’s seniors worked hard, made many sacrifices, and built our country.

It’s time to reward that hard work. Under the strong leadership of Prime Minister Stephen Harper and Minister Marjory LeBreton, the Government of Canada is delivering real results for our seniors.

Budget 2006 and Budget 2007 delivered for older Canadians in many ways.

We helped 2.7 million seniors, and took 85,000 pensioners off the tax rolls by raising the Age Credit by $1,000 and doubling the Pension Income Credit.

And we provided over $1 billion in yearly tax relief by bringing in pension income splitting.

Budget 2008 delivers even more.

On the excellent advice of the National Seniors Council, our Government is investing $13 million over three years for a campaign to protect our parents and grandparents from elder abuse and fraud.

And we are helping even more seniors become active in communities across Canada by expanding the New Horizons for Seniors program.

New Horizons for Seniors is a win-win for Canada: it’s great for seniors, and great for local communities.

Many seniors want to stay in the labour market. And with labour shortages in many parts of the country, Canada is going to need its hard-working seniors more than ever.

We’re helping older Canadians get back into the workforce through the Targeted Initiative for Older Workers.

And we’re helping older Canadians stay in the workforce by removing a major disincentive to work. Budget 2008 raises the Guaranteed Income Supplement exemption from a current maximum of $500, to the first $3,500 of earnings.

That’s a 700% increase!

Much like the New Horizons for Seniors Program, raising the GIS exemption is win-win public policy: it’s great for low-income seniors who would like opportunities to work and save, and great for Canada’s labour market.

After all, seniors possess the knowledge, wisdom, and on-the-job experience that employers need.

Seniors also know it’s important to save for the future.

Which is why our Government is making it easier to save by bringing in Tax Free Savings Accounts (TFSA).

Starting next year, Canadians aged 18 and over will be able to save up to $5,000 each year in a TFSA.

And seniors are expected to benefit more from Tax-Free Savings Accounts than Canadians of any other age grouping. Based on current savings patterns, seniors could receive as much as one-half of the total benefits provided by the TFSA.

We are investing in seniors because seniors have invested in Canada.