As President of the Canadian Association of Retired Persons, CARP, I represent a constituency that has invested decades building this country, raising families, paying tuition, and contributing to the economy. One of the most troubling proposals that we face today is the idea of taxing the income from the sale of a primary residence. The Globe & Mail’s contributor, Dr. Paul Kershaw, regularly raises the prospect in his Generation Squeeze columns. Dr. Kershaw’s recent meeting with Prime Minister Trudeau elevates the notion that the burden of providing “generational fairness” should be hoisted onto the shoulders of the boomer generation.

For many seniors, their home is more than just a place to live—it is a financial safety net. Introducing a tax on home equity would be a devastating blow to their financial security and well-being as they age out of the workforce and increasingly depend on fixed pension incomes. Generations of Canadians have worked tirelessly to pay off their mortgages. They have done so with after-tax dollars and during periods of extremely high interest rates. They have sacrificed luxuries and deferred vacations to ensure they have a stable home. These homes are more than just buildings; they represent a lifetime of hard work, perseverance, and financial discipline. Taxing the gains on the sale of primary residences would undermine this achievement and penalize those who have been prudent and responsible.

For many seniors, home equity is a primary source of retirement funding. This equity is often relied upon to cover ever-increasing living expenses, unexpected healthcare and for exorbitant long-term care costs. In an era where pensions and savings are diminished by inflation home equity is a crucial component of financial planning for seniors.

The encouragement by academics such as Dr. Kershaw to tax home equity fails to consider the unique challenges faced when Canadians reach the retirement years. Many are on fixed incomes with no private pensions. They must rely on Old Age Security and Canada Pension Plan payments if they contributed during their working lives. A tax on home equity would have the unintended consequence of discouraging downsizing to smaller accommodations to curb expenses and maintain a reasonable quality of life.

CARP stands firmly against any government or political party that seeks to impose a tax on the sale of primary residences. It is a matter of fairness and respect for the contributions seniors have made to building our communities. CARP members and older adults across the country have earned the right to financial security in their retirement years.

Help us with this fight against home equity taxes and encourage a friend to join CARP!

Rudy Buttignol,C.M.
President