Conservatives call for tax relief for GM worker severance packages

The Opposition Conservatives are calling on the federal Liberal government to reduce taxes on severance packages for laid-off General Motors workers in Ingersoll, Ont.

Conservative Leader Pierre Poilievre penned a letter Sunday, co-signed by labour critic Kyle Seeback and local MP Arpan Khanna, addressed to Finance Minister François-Philippe Champagne calling for an exemption to the withholding taxes that ding severance pay.

In a draft version of the letter seen by The Canadian Press, the Conservatives argue taxes on a big chunk of GM’s lump-sum severance payments could deprive out-of-work employees of “tens of thousands of dollars,” adding “insult to injury.”

The federal Tories said waiting until after tax season to recover funds is not a reasonable solution for workers who recently lost their regular paycheques and still need money for their mortgages and grocery bills.

“These men and women worked hard, played by the rules and built things this country depends on. The least your government can do is stop taking their money at the worst possible moment,” the letter said.

“That is why I am asking you to use your existing authority to reduce the amount of tax withheld on these payments for workers affected by the GM CAMI layoffs.”