Dear Constituents,

As I write this letter, it is Sunday October 30th and this householder is due tomorrow if it is going to be guaranteed to reach your home by Christmas. As you can appreciate, it is not possible to anticipate what the issues may be 8 weeks from now. That is why my householders include matters which are not time sensitive. If there is a current matter of importance to you, please contact my office and I will ensure that you receive the information you need.

My work in Ottawa has been extremely busy because of the high volume of legislation and emerging issues. You may be aware that I am often asked to speak in the House and in addition to being the Vice-Chair of the Government Operations and Estimates Committee.

I have also just been appointed to a panel of 5 MPs under the chairmanship of the Speaker of the House of Commons. Our job is to review the budgets and spending of the 5 Officers of Parliament. These include the Auditor General, the Privacy Commissioner, the Access to Information Commissioner, the Chief Electoral Officer and the Official Languages Commissioner.

In my Fall householder, I included an article on marijuana grow houses which received substantial attention in Ottawa particularly in debates on sentencing by the courts and the need for mandatory minimum jail terms for the most serious and violent crimes. I expect to see legislation on this before the end of the year.

I also wrote about the Whistleblower legislation which would create a new Integrity Officer of Parliament to investigate employees allegations of wrongdoing within the Public service and Government. The Bill passed in Parliament and is before the Senate. I am hopeful that this Bill, on which I have worked for over 2 years, will become law early in the New Year. One of the most important aspects of the Bill is that it protects the anonymity and rights of employees to the greatest extent possible.
In this householder, I have included a number of features which I hope you will find of interest:

• 2005 was the year of the Veteran and I have provided some information on the recognition that was given.
• I have also included my annual update on Income Tax Tips which may be helpful to your family
• A feature on Juvenile Diabetes
• An update on funding of health research initiatives and
• A summary of the Government plan on rising energy costs.

If you have any suggestions for future householders, I would be pleased to receive them. As always, I welcome you input or comments on this householder or other matters of importance.

Finally, I want to thank all of you for your thoughtful and constructive feedback over the past year. Your input has helped me to do the best job possible on your behalf and I am very grateful for the opportunity to represent you in Parliament.

Sincerely,

Paul Szabo

On October 7, 2005, I made the following statement in Parliament which should be of interest to you:

Mr. Paul Szabo (Mississauga South, Lib.):

Mr. Speaker, seniors are among the most vulnerable in our society.

They are often victims of abuse or fraud.

Many require home care or long term care which may not be available or affordable.

Most are on a fixed income, often without inflation protection.

Many are in fear of losing their homes due to the depletion of their retirement savings, and many experience depression or despair.

The National Advisory Council on Aging estimates that as many as 300,000 seniors who are entitled to old age security or the guaranteed income supplement do not receive these benefits because they have not applied for them.

I therefore encourage all hon. members to include in their next householder an appeal to all their constituents to ensure that their families and friends who are entitled to these benefits are in fact receiving them.

As parliamentarians, we have the opportunity and the responsibility to help seniors who are among the most vulnerable in our society.

The Government of Canada has made efforts to communicate with seniors who have not applied for benefits. Many have moved or may not understand what is involved. Please make sure that the seniors in your life have the help they need to manage their affairs.

This Fall, the Minister of Health announced the largest health research funding initiative ever. There were over 1600 research grants awarded with a value of over $354 million.

The Canadian Institutes of Health Research (CHIR) is the Government of Canada’s agency for health research. Their mission is to create new scientific knowledge and to translate it into improved health, more effective health services and products and a strengthened Canadian health care system. Composed of 13 Institutes, CIHR provides leadership and support to close to 10,000 health researchers and trainees across Canada.

CIHR currently supports over 3,000 graduate students and post doctoral fellows across Canada. Through a multitude of professional capacities, these students will use their research training to create the knowledge-based economy. The CIHR has also formed major international partnerships with 11 other countries. The areas of research covered are as diverse as diabetes, neuroscience, Aboriginal health, chronic disease and tuberculosis.

Funding for research is awarded by the CIHR and is based on a rigorous peer review process for each research project. Projects currently receiving funding include:

• Toronto Hospital for Sick Children is studying the experiences of parents of children with cancer.
• The University of BC is studying how alterations in cells can lead to diseases like cancer.
• The University of Alberta is exploring the impact of menopause on cardiovascular disease in older women
• Simon Fraser University is studying the causes of sleep disruptions.

For more detail, visit www.cihr-irsc.gc.ca or contact my office.

The Government of Canada’s plan to help Canadians deal with high energy costs is designed to:

• provide direct financial assistance called an Energy Cost Benefit to more than 3 million low income seniors and low income families with children;
• help families lower their future household heating costs;
• make more and better pricing information available to consumers while taking legislative steps to deter anti competitive practices; and
• fast track money to municipalities for public transit.

THE ENERGY COST BENEFIT

The total cost is $2.4 billion over five years. A total of $565 million will be paid out to about 3.1 million low income families and seniors who will receive anywhere from $125 to $250 a household. These payments are a first down payment on further personal tax relief being introduced over the next five years.

ENERGY EFFICIENCY

A total of $1.04 billion has been set aside to assist low income households as well as public institutions such as hospitals and schools with the cost of upgrading their dwellings/buildings to make them more energy efficient. This includes:

• $500 million for some 130,000 low income households that are eligible for up to $5,000 to help with the cost of heating system upgrades, window replacement and draft proofing;
• an additional $150 million for our Government's Houses Retrofit Incentive Program, which provides money for 250,000 more households;
• $185 million for those who install best in class energy efficient oil and gas furnaces ($150 per unit) or those who heat with electricity ($250 per household); and
• An additional $210 million in retrofit incentives for public sector institutions.

PUBLIC TRANSIT INFRASTUCTURE

Up to $800 million over the next two fiscal years will be freed up for investments in urban transit in order to give municipalities greater certainty for their own planning purposes.

BETTER TRANSPARENCY IN THE ENERGY MARKET

A new $15 million Office of Energy Price Information will be established to monitor energy price fluctuations and provide clear, current information to Canadians.

Another $13 million will allow the Department of Industry to take a number of steps to deter anticompetitive practices, including giving Canada's Competition Bureau more powers and strengthening the Competition Act.

SUMMARY

This comprehensive approach provides timely, short term relief to millions of low income Canadians while also setting the stage for meaningful and lasting benefits through greater efficiency and conservation.

• Making our homes and buildings more energy efficient is a key way for Canadians to offset higher energy prices.
• The incentives provided will help Canadians save energy and money, and reduce green house gas emissions that contribute to climate change. These measures also support Project Green the Government of Canada's action plan to build a more sustainable environment.
  

Although I no longer operate my Chartered Accounting practice, I still do tax returns for family members and friends. It’s a good way for me to keep up with tax changes and, from time to time, I have found that some still don’t take advantage of savings opportunities.

• Everybody has a different situation and every tip may not be applicable to you. However, in my experience, most taxpayers could find savings if they took the time to assess their choices. Below are a few tips which could save you money. Note that the figures that I have used are for the 2004 tax year. Some of these are indexed and will change slightly for the 2005 tax year.
• Medical Expenses – Everyone can receive a tax credit for eligible medical expenses which exceed the lesser of 3% of your net income or $1,813. First of all, check the tax guide to ensure that you know what is eligible. The list is long and includes things like premiums for private insurance and medical devices and aids. The next thing to know is that one spouse can claim all the expenses for the entire family. This makes a difference because if the spouse with the lowest income claims all the expenses, the 3% reduction will be less and the credit will be more unless both spouses make about the same income. Finally, in any tax year you can claim medical expenses for any 12-month period which ends in the tax year. If you have large expense in the fall of one year and another large one in the summer of the next year, you may be better off by claiming them both on the same tax return. Taking this one step further, you may want to schedule appointments for medical or dental or vision care expenses before year end or delay until the new year depending on what other costs you have had or are expecting. If you had $1,000 in one year and $1,000 in the next you may not get any tax credit in either year but if you claimed them both on the second tax return, you would save money regardless of how much you make.
• Charitable Donations – Regardless of which spouse or dependent made a charitable donation, one spouse can claim them all. This can make a difference because the federal tax credit is 16% on the first $200 and 29% on everything over that. If both spouses made donations of $200 and each claimed their own you would only get 16% federal credit on the entire amount. If one claimed both donations, $200 would be at 16% and $200 would be at 29%. The provincial tax credit also increases. You should also be aware that donations can be carried forward for 5 years. That means that you may be better off delaying the claim for charitable donations and combine them in the following year which could maximize the amount eligible for the higher credit. The increased savings is likely more than you could earn in interest by taking the credit early remembering that any interest earned is taxable.
• Provincial Sales Tax Credit – If you have a child who is 16 to 18 years of age in the taxation year and if you received no Child Tax Benefit for them from the federal government, they can actually file their own tax return and claim the $100 sales tax credit and receive a refund cheque for $100 as long as their income is less than $4,000. If you claim them on your return, the credit is only $50. Only one parent can claim for both spouses and any dependents and their tax credits are reduced by 2% of the total family net income in excess of about $4,000. In many cases, the income is too high to get any tax credit. That is another reason why a 16 to 18 year old should file a return. They will need a Social Insurance Number so if they do not have a card, now is a good time to get one. You may also have children who are over 18 years of age but are still in school or otherwise make no income. Make sure that they file a return as well to get their $100 provincial tax credit.
• Goods and Services Tax Credit – One spouse must claim the GST tax credit for both spouses and any dependent children. The credit is $227 for each spouse and $120 for each dependent child. This credit is reduced by 5% of the excess family income over $29,618. If you have a child who is 19 or older in the tax year, make sure they file their own return and claim the GST credit. It is worth $227 just for filing a return. Taken with the Provincial sales tax credit, a child over 18 years of age can actually receive $327 just for filing a return which they can do even if they have no income.
• Income Splitting – As a general rule, a couple will pay less tax if their income is split evenly. This is rarely the case so you may want to look for ways to shift income from the higher earning spouse to the lower. Investment income is usually a good place to start. If the higher earning spouse pays all the bills etc out of their bank account and the lower spouse uses their income to invest in GICs etc, all of the investment income can be claimed by lower income spouse. Too often couples have one bank account and often one taxpayer will claim all the income earned on savings. If you have a joint account, you can split the income between both spouses even though the T5 tax slip is in the name of one spouse. You should also be aware that those who receive a Canada Pension Plan benefit can choose to split up to 50% of their pension with their spouse. In most cases, this will reduce the total tax bill of the couple.

I hope that some of these tips have helped you think of possible savings opportunities. The key is to handle the family like one taxpayer and reduce the family taxes.

2005 has been the Year of the Veteran – an opportunity to pay tribute to our Veteran heroes all year long.

Throughout the year, Canadians have been helping to celebrate Veteran’s contributions; honouring their sacrifices; remembering their legacy; and teaching our youth about our history. This year has helped to ensure that young Canadians take full advantage of the living history that our Veterans carry with them and are willing to share.

Throughout the Year of the Veteran, there have been numerous events across the country and abroad. Sports teams have dedicated their seasons to Veterans, school groups have performed military re-enactments and there have been numerous parades and festivals.

This year, Canada celebrated in many ways. These include:

• Celebrating the 60th anniversary of the end of the Second World War;
• In May, we celebrated VE-Day;
• On VJ-Day in August, Veterans of the Far East Campaign traveled to Ottawa to mark this important milestone;
• A special delegation of Veterans also went overseas for the Aboriginal Spiritual Journey;
• In November, the Seventh Book of Remembrance, entitled “In the Service of Canada” was unveiled. It lists all the Canadian Forces members who died in service since October, 1947.
• This year, Veterans Affairs Canada introduced a new Veterans Charter, the most profound transformation of Veteran’s benefits in more than a half-century.

We are the future they fought for and we owe it to our future to remember. Lest we forget.

Our health and well-being continues to be the top priority of Canadians and that is why I have concentrated so much of my work on health issues. Illnesses know no age boundaries and despite the enormous advances in medical research, there are many diseases for which there still is no cure such as juvenile diabetes. I recently met with their research foundation representatives to get updated.

Over 2 million Canadians live with some form of diabetes. Many have juvenile (Type 1) diabetes, the severest form of the disease. Most of them are under age thirty and almost half are children.

Juvenile Diabetes takes a harsh toll on young bodies. Not only will they be insulin-dependent for life, but the devastating complications such as blindness, vascular damage and kidney failure are an ever-present threat.

Controlling the disease imposes a gruelling regimen on kids. It includes eating a carefully calculated diet, checking blood glucose levels several times each day and insulin injections as many as six times per day. It means that these children and families are living by the clock, day and night, for the rest of their lives. It also means having a life expectancy about 15 years shorter than normal.

The causes of juvenile diabetes are not known for certain. Research points to a chronic auto-immune disorder in which the body’s immune system attacks and eventually destroys the insulin producing beta cells in the pancreas. Insulin is not a cure and over time, serious complications are likely for most kids. You cannot outgrow the disease. The only way out is a cure. That is why they are looking for volunteers and research funding.

For more information, you can visit www.jdrf.ca or call their toll free number 1-877-634-2238.

In my last householder, I included an article called Words of Wisdom which received substantial positive feedback. I also received several more sayings or statements which are food for thought. Here is a selection which came from Andy Rooney:

I’ve learned that ….

• When you’re in love, it shows;
• Just one person saying “You made my day!” makes my day;
• Being kind is more important than being right;
• You should never say no to a gift from a child;
• You can always pray for someone when you can’t help them;
• Money doesn’t buy class;
• It’s those small daily happenings that make life so spectacular;
• To ignore the facts doesn’t change the facts;
• Love, not time, heals all wounds;
• The easiest way to grow as a person is to surround yourself with people smarter than you are;
• Everyone you meet deserves to be greeted with a smile;
• No one is perfect until you fall in love with them;
• Life may be tough but you are tougher;
• Everyone needs a friend to act silly with;
• Opportunities are never lost; someone will take the ones that you missed;
• When you harbour bitterness, happiness is docked elsewhere;
• One should keep their words both soft and tender because tomorrow you may have to eat them;
• A smile is an inexpensive way to improve your looks;
• When your newly born grandchild holds your little finger in his little fist, that you’re hooked for life;
• Sometimes all a person needs is a hand to hold;
• The less time I have to work with, the more things I get done;
• Having a child fall asleep in your arms is one of the most peaceful feelings in the world.
  

Visit us on the Internet: www.paulszabo.com

Mississauga Office Hours: Monday to Friday 9 a.m. to 5 p.m. Appointments can be scheduled during office hours or other arrangements can be made by calling the office.

Constituents may write to any Member of Parliament or Cabinet Minister postage free. Simply address your envelope to the particular Member, c/o House of Commons, Ottawa, Ontario K1A 0A6. Your views and suggestions are important.

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