88.7 Improved Tax Treatment of Interest Income
Whereas, Prior to 1988 there was an income tax deduction equal to $1000, or to the amount declared for interest and dividend income, whichever was less; and,
Whereas, The July 18th, 1987, White Paper on Tax Reform proposed the elimination of this incentive for Canadians to save by means of Canada Savings Bonds, Guaranteed Income Certificates and special bank savings accounts, by the removal of the $1,000 interest and dividend deduction; and,
Whereas, Dividend income still receives special treatment in the most recent tax legislation presented by the Minister of Finance, but interest income does not; and,
Whereas, The dependent spouse in the home will not be able to have more than $500 income without the “married” tax credit of the supporting spouse being reduced; therefore be it,
RESOLVED, That The National Council of Women of Canada urge the Government of Canada to institute a tax credit for the first $1000 of interest income from Canadian sources which shall be among those credits which may be transferred to a supporting spouse.