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What's this?

Yukoner's letter to Minister of Finance

Thank you for taking the time to let the Minster of Finance know how you feel about the Northern Residence Tax Deduction.

The letter will be cc'd to Larry Bagnell, Yukon MP

You may send the letter as is or edit it to better suit your views.

From
Name
Postal Code
Subject
A Message to James Flaherty	Honourable James Flaherty Minister of Finance Dear Mr. Flaherty, The Northern Residents Tax Deduction (NRTD) was created in 1987 as a measure to offset the high cost of living in the territories and remote parts of the provinces. Residents of the Yukon, Northwest Territories, Nunavut and sections of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland and Labrador and Nova Scotia may apply for the deduction. On average Northern households spend $15,000 more per year on living essentials than other Canadians. In the 20 years since the NRTD was first introduced inflation has risen 65%, however the deduction has not increased one cent. This means the buying power of the maximum deduction available for the residency portion has shrunk from $5,475 in 1987 to $ 2463.75 today. Despite Conservative Prime Minister Stephen Harper’s words of concern about the North, his government has done little to better the lives of Northern working families. Finance Canada reports that the NRTD accounts for on average $132.5 million in lost revenue out of a budget of $200 Billion. This figure includes both the residency deduction and the travel deduction. The majority of this lost revenue comes from the provinces with the territories each reporting about $13 million in lost revenue. Meanwhile, it has been estimated that an increase to the deduction of $1,000 would put about $3 million back into the pockets of Northerners. To bring tax fairness to the working families of the North, the Government of Canada must increase the deduction by 50 percent immediately and index the NRTD to a Northern inflation measurement. A 50 percent increase would raise the maximum residency deduction to $ 8212.50, while indexing would ensure that it would maintain its relevance as an offset to the high cost of living in the North. When the Budget 2007 was announced, the rational for the increase of the Capital Gains Exemption was that has been nearly 20 years since the exemption was increased, and so was long overdue. It has been 20 years and counting since the NRTD was increased. It is imperative that the NRTD be increased to bring tax fairness to the North.