Another new group has jumped on the political band wagon to decry income trust taxes.  At a press conference hosted by independent member of parliament, Garth Turner, CRIIA announced that it has arrived.

The group says it was formed to represent the interests of the millions of ordinary Canadians who are trying to cope with those difficulties facing retirees and pensioners. The group said that, “Canada’s population is aging. Two-thirds of our workers have no employer pension plan. Those Canadians have to save on their own for their retirement...Once retired, they then have to generate enough income off their savings to pay the bills. Increasingly, these people find themselves on the short end of the stick as interest rates and income returns have fallen and, more recently, as some government policies work against them.”

Alexander Irwin, Director and General Secretary, commented “The biggest issue on our plate right now is the government’s income trust proposals. Many retirees have been badly hurt by them. They have lost hard earned savings and their future income will drop substantially. It’s really a `double hit’ for them. The federal government has been pretty harsh on these people. We just don’t think it’s right. There has to be a better way.”

Mr. Irwin added, “The other major issue is that, as a practical matter, most seniors can’t get by on GICs and bonds that pay only 3-4% per annum. What are people going to do? It’s a real problem.” Given these issues and concerns, the Association is working on a Special Report on Income Trusts. The full report is scheduled to be publicly released next week.

Mr. Irwin went on to say “Our research shows most ordinary Canadians are negatively affected by these income trust proposals. They just don’t yet realize it. When you follow the effects through, the two-thirds of Canadians without employer pensions will have to either save a lot more for retirement or work a lot longer before retiring. It’s bad news either way.”

The group press release said that, “The Canadian Retired & Income Investors’ Association is a federally incorporated not-for-profit corporation representing the interests of ordinary Canadian retired and income investors. It is a grassroots, volunteer organization in the process of establishing local chapters across the country. We believe the time, intellect and energy of Canada’s retired and income investors is a great resource that can be organized to help one another”.

It aims to present issues and information in a way that ordinary Canadians can understand at the website: CRIIA.CA. The group appeared on the podium beside the Canadian Association of Income Trust Investors.