NEW DEMOCRATS PROPOSE TAX CHANGES TO ENCOURAGE CHARITABLE DONATIONS
November 30th, 2010 - 3:00am
OTTAWA – New Democrat Deputy Leader and Finance Critic Thomas Mulcair (Outremont) tabled a private member’s bill today, supported by National Revenue Critic Carol Hughes (Algoma—Manitoulin—Kapuskasing), which would introduce changes to the Income Tax Act to encourage charitable contributions.
The NDP bill would raise the non-refundable tax credit rate from 29 to 39 per cent for every new donation above $200 that exceeds the donation given in 2009.
“Through this bill, we ask government to encourage people across the country to make donations to charities,” said Mulcair. “This would be a very significant help for charities. Their work is extremely important and we should all do what we can to help charities get the support they need to do good work in our communities. We hope that MPs from all parties will rally behind us to pass this bill as fast as possible.”
The total amount of the tax credit cannot surpass the maximum amount already authorized by the Income Tax Act that an individual can ask for during his or her lifetime, which is currently $10,000.
“Charities often are underfunded. As MPs, we must help those organizations increase their funding,” Hughes added. “This bill is a much needed legislative response to this underfunding. It will provide help for charities, whose frontline work to help those in need is something we should all encourage.”