Feds expected to quash RESP bill passed only last week - Macleans.ca

Feds expected to quash RESP bill passed only last week

Bill would have allowed parents to save up to $5000 per year tax free for children’s education

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Liberal leader Stephan Dion announced that his party won’t bring the government down over confidence votes scheduled for Thursday. The move means that parents won’t benefit from a private members bill that would allow them to save up to $5000 per year tax free for their children’s education.

RELATED STORY: Commons passes private members’ bill giving parents education tax breaks 

Dion emerged from caucus Wednesday and said, “About an election, look, not this week.” That means that the Liberals will not oppose a budgetary ways-and-means motion, which guts the new Liberal private member’s bill that would make Registered Education Savings Plans tax deductible.

The RESP bill was passed just last week by opposition parties. It would cost up to $1 billion. It was widely criticized for bringing the government closer to a potential deficit at a time when the economy is uncertain.

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