Canadian households have been subjected to unfair income tax changes over the years. Many changes were small and went unnoticed, but the cumulative impact was severe and for some retirees, devastating. Only now are seniors beginning to realize the compounded effect. Nest eggs are vanishing and "Golden Ponds" are turning into "Quagmires".

Taxpayers in other G7 countries have options. Households can file taxes as a family unit. Some duel-earners and wealthy Canadians can split family income for tax reduction. Some use legal loopholes like; establishing family trusts, incorporating within family or forming a family business. Many simply put family members on the firm's payroll to spread total household income among its members. Provisions like Spousal RRSPs came too little and too late for today's retirees. Seniors can split income if they legally separate, but divorcing for tax-reduction purposes is illegal in Canada.

This is unfair and unjust and creates two classes of citizens. According to Mr. Frank and Carol Stokes in their Brief submitted to the House of Commons Standing Committee on Finance on October 8, 2004. The basic definition of a progressive tax system is horizontal equity where citizens under similar income circumstances are treated equally. Canada's system claims to be progressive but changes over the years have created a hybrid that defeats the "progressive" criteria. Even Canada's claim of being "Individual-based" Income Tax has been compromised by limiting tax credits based on household income without allowing splitting.

The taxman cannot have it both ways. This is a violation of Section 15 of the Canadian Charter of Rights and Freedoms. See Website http://laws.justice.gc.ca/en/charter/

Also the changes to the Income tax act that came into affect on January 1, 1996 for residents in Canada who received U.S. Social Security came as an emotional shock as well as an economic shock.

This change caused many retirees deep concern. Some of the estimated 85,000 recipients who were retired at that point in time had no options available to them. Their income earning years was behind them.

Both these situations caused a great deal of grief and stress not only on those people affected but also to those individuals and non-profit organizations or work with or for individuals such as the Windsor-Essex County Chapter of CARP (Canada's Association for the Fifty-Plus).