Low Income Government Housing Tenants Slaped With Tax Collections (Canada)

[Economy 52,854]

https://www.cbc.ca/amp/1.6363896

 

There is new emerging that many tenants in community housing, or low income individuals who had their property taxes waved were not properly communicated that such tax exemptions made them ineligiable for a smaller benefit known as "trillium benefit" which essentially is a small tax credit made to low income individuals to help offset sales taxes

 

When these individuals file their income taxes the Canada Revenue Agency automatically determines that they are to be paid the trillium benefit. The CRA essentially puts the responsibility on the individuals to recognize if for some reason or another they do not qualify.

 

Very often people dont know because they are not communicated. In this case the city of Toronto did not communicate to tax exempt individuals that such an exemption made them not eligible for the other benefit and the CRA does not emphasize it either making it not common knowlege

 

As a result many low income individuals are now being audited for years worth of trillium benefits they werent supposed to receive with the average owing close to $1,000. Many of these individuals are saying they have no idea how they are going to pay this unexpected bill

[Economy 52,854]

It seems there was poor communication between levels of Government.

 

Since the Government is partially at fault for this because you cant assume people will are gonna read the long tax code or rules (who the hell even does that?) And that stuff like this u need to be clear on...

 

They should just forgive these credits. If they insist you cant have both benefits at least be more clear about it...

 

Imagine counting ur wallet to see what u can afford at the grocery store this week with these surging prices then u get a letter out of no where saying you owe $1000 

[LaLa 19,898]

If the average owing is $1000 and these are low-income people, just write it off ffs  

 

 

[AsleepOnTheCeiling 6,965]

I don't quite understand why people in low income housing are taxed in the first place. As long as they are not just staying at a low income to live comfortably and they're actively attempting to better their living situation, it seems counter productive to tax the people who are relying on state/federal benefits for housing. 

[Bling 31,680]

LMAO Daddy Trudeau...good luck getting 1k from low income individuals. Leave them alone

[PartySick 172,539]

3 minutes ago, TortureMeOnReplay said:

I don't quite understand why people in low income housing are taxed in the first place. As long as they are not just staying at a low income to live comfortably and they're actively attempting to better their living situation, it seems counter productive to tax the people who are relying on state/federal benefits for housing. 

I always thought that was weird too in the US but I guess I get it. Being in a situation where you collect the benefits of tax dollars doesn't remove your obligation to pay those tax dollars.

I'm a firm believer of taxation though. To live in a society you have to give back, even if you're also receiving.

I'm sure paying taxes is far less of a burden than being low income and left to support yourself as far as rent, medical care, food, etc.

But I'm also sure someone is gonna tell me why I'm wrong

[PartySick 172,539]

If it was a miscommunication then the government just needs to accept the losses tbh

[gothicdream 39,657]

This is really sad and will help perpetuate the cycle of poverty, especially if the government sends the unpaid debts to collections.

[AsleepOnTheCeiling 6,965]

2 hours ago, PartySick said:

I always thought that was weird too in the US but I guess I get it. Being in a situation where you collect the benefits of tax dollars doesn't remove your obligation to pay those tax dollars.

I'm a firm believer of taxation though. To live in a society you have to give back, even if you're also receiving.

I'm sure paying taxes is far less of a burden than being low income and left to support yourself as far as rent, medical care, food, etc.

But I'm also sure someone is gonna tell me why I'm wrong

I believe in taxes too, but why tax somebody who can't afford to eat. Taxes in part are collected in order to help them get on their feet but then it somehow also ends up crippling them. I think they're contributing enough to society at that point by working a job and improving the GDP. 

[Economy 52,854]

2 hours ago, TortureMeOnReplay said:

I believe in taxes too, but why tax somebody who can't afford to eat. Taxes in part are collected in order to help them get on their feet but then it somehow also ends up crippling them. I think they're contributing enough to society at that point by working a job and improving the GDP. 

 

5 hours ago, PartySick said:

I always thought that was weird too in the US but I guess I get it. Being in a situation where you collect the benefits of tax dollars doesn't remove your obligation to pay those tax dollars.

I'm a firm believer of taxation though. To live in a society you have to give back, even if you're also receiving.

I'm sure paying taxes is far less of a burden than being low income and left to support yourself as far as rent, medical care, food, etc.

But I'm also sure someone is gonna tell me why I'm wrong

I think ur oversimplifying it

 

Not everyone in the same income bracket is in the same situation. U could have someone with a higher income partner and they choose to work only part time or settle for a convinient job despite low pay because they circumstances allow with a high earning spouse and so they do not need to be exempt from taxes or receive housing benefits either. So would it be fair for that person to not pay any taxes?

 

It is too complicated to know when it comes to tax collections who is struggling a lot and who is not by the income alone, the numbers dont tell the story if you live alone, if you have a family to feed, how high your particular rent is, medical bills if you have health issues etc. A revenue agency cannot keep track of that properly

 

So it is easier to just tax low income a lower rate but still pay their taxes... But then if they are in a circumstance that require extra assistance it can be granted on a case by case basis upon application

 

Because circumstances and needs vary. Its easier to just make the taxes the same but then the assistance more tailored to each persons needs (and some low income may not need)

 

It may seem odd but if u really think about it, it makes more sense the way they do it and is more fair