Evidence of meeting #22 for Status of Women in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was policy.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Louise Levonian  General Director, Senior Assistant Deputy Minister's Office, Tax Policy Branch, Department of Finance
Mireille Éthier  Senior Chief, Federal-Provincial Taxation Section, Department of Finance
Baxter Williams  Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance

10:35 a.m.

General Director, Senior Assistant Deputy Minister's Office, Tax Policy Branch, Department of Finance

Louise Levonian

With our system of government, yes.

10:35 a.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Yes.

10:35 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

Thank you.

And Madame Boucher, a very small question.

10:35 a.m.

Conservative

Sylvie Boucher Conservative Beauport—Limoilou, QC

Madam Chair, I would like to come back to what Ms. Deschamps said about two parallel worlds. It is good to have a dream.

Do you think that some day these two parallel worlds could come together so that gender budgeting becomes automatic and the equality between men and women is no longer put into question? Can we oblige each department to do such an analysis?

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

You don't have a crystal ball.

10:40 a.m.

Conservative

Sylvie Boucher Conservative Beauport—Limoilou, QC

No, but maybe she has an answer for us.

10:40 a.m.

General Director, Senior Assistant Deputy Minister's Office, Tax Policy Branch, Department of Finance

Louise Levonian

I know that we have made much progress. As an economist, I see that we are on the right track.

10:40 a.m.

Conservative

Sylvie Boucher Conservative Beauport—Limoilou, QC

Thus, we must continue working and hammering away.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

I think what we need, Madame Boucher, is all of us working in tandem. If we really want GBA to succeed, we need to work in tandem.

I have a few questions, clarifications, to ask you. Do you know who prepared this paper that was given to us? Do you know?

10:40 a.m.

General Director, Senior Assistant Deputy Minister's Office, Tax Policy Branch, Department of Finance

Louise Levonian

The tax policy branch. I was one of them.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

Okay. Would you please ensure that the information we have for 2006 is correct? Because it isn't correct.

We can all go to the CRA website, and we know that the tax rate increased and that the impact was a negative impact. What you have given us contains good tidings and glad tidings, but the reverse is the truth. So we do not appreciate receiving incorrect information. When macroeconomists come before us and we have international people come before us, we do not want to appear to be fools, because on this they will chew us up and throw us out as well, because they'll think we do not know what we are doing.

10:40 a.m.

Liberal

Maria Minna Liberal Beaches—East York, ON

On a point of order, just very briefly, it's obvious that our witnesses didn't prepare the material, in fairness to them. So I wonder if we might send a note to whoever prepared this, that they might prepare expert information for us.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

I think we can let Mesdames Levonian and Éthier at least take it back and update this information and give us the corrected version. Right?

10:40 a.m.

Conservative

Bruce Stanton Conservative Simcoe North, ON

On a point of order, Madam Chair, I think what you're talking about is the change in the lowest tax rate.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

Right.

10:40 a.m.

Conservative

Bruce Stanton Conservative Simcoe North, ON

I think, Madam Chair, that's a matter of debate. I think you—

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

Oh no. No, I'm sorry, Mr. Stanton. You're out of order.

10:40 a.m.

Liberal

Maria Minna Liberal Beaches—East York, ON

No, it's not a matter of debate.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

There is no debate. It's on the CRA website.

10:40 a.m.

Conservative

Bruce Stanton Conservative Simcoe North, ON

No, it's a point of order.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

Go to the CRA website and you will find it at 15%. Look at the tax return forms. You will find it at 15%. It is empirical evidence that's available, and I will not take this. I don't want anybody to take me for a fool.

And the personal exemption was decreased, not increased. We do tax returns for the poorest, and therefore we know what we are talking about.

So on that one, please help clarify it and give us the right version.

Thank you.

10:40 a.m.

General Director, Senior Assistant Deputy Minister's Office, Tax Policy Branch, Department of Finance

Louise Levonian

The documents you have are for 2006. So the tax rate for 2005 was lower, and for 2006 it was--

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

It was 15.5%, yes.

10:40 a.m.

General Director, Senior Assistant Deputy Minister's Office, Tax Policy Branch, Department of Finance

Louise Levonian

So the analysis is for 2006, and it's correct for 2006.

10:40 a.m.

Liberal

The Chair Liberal Yasmin Ratansi

Going from 15% to 15.5% is an increase in tax, not a decrease in tax for the lowest income tax bracket. I will not argue with you. You can go to the CRA website. I went to the CRA website three weeks ago to do some analysis.

For the poor or anybody, go to the 2005 tax return and to the 2006 tax return. There is an increase, but because it was for half a year the increase turned out to be 15.25%.