Modernizing Old Age Security would free billions for Ottawa to address affordability
Modernizing Old Age Security by reducing benefits for retirees with household incomes above $100,000 could free up nearly $9 billion annually to address affordability challenges without increasing taxes or the deficit. The proposed change would protect or improve benefits for about 80% of seniors while slowing the growth of OAS spending. The government missed an opportunity in its spring economic statement to implement such reforms and redirect funds toward poverty reduction, housing, education, and climate initiatives.
Opening excerpt (first ~120 words) tap to expand
Open this photo in gallery:Trimming OAS benefits by about $3,000 after tax for retirees with household incomes above $100,000 would protect or improve benefits for roughly 80 per cent of seniors.ThinkstockShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountFiscal updates are meant to show how governments will use scarce dollars to meet the moment. This week’s spring economic statement shows something else: The Carney government missed another opportunity to deliver the biggest improvements to affordability and income security in decades – without raising tax rates or the deficit.Consider what was left on the table.Canada could have eliminated seniors’ poverty by adding $5,000 for each of the 400,000 older Canadians below the poverty line.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
