Mr. Speaker, I welcome this opportunity to speak to Bill C-70. I listened to the hon. member for Broadview-Greenwood, and I was both amazed and impressed.
I was amazed to hear a Liberal member, an experienced member of the House of Commons who did a very thorough study of the tax system in Canada, say that the tax lobby is the most powerful lobby in this country and that there is no tax reform in this country because there are powerful interests that do whatever is necessary to influence governments.
I am also impressed, because I see a Liberal member who is swimming against the tide as he tries to advance the cause of fair taxation in this country. I am impressed because, considering his experience, he must realize that his chances of succeeding are very slight. Nevertheless, he belongs to a group that is submitting a proposal for tax reform.
I suppose that five, ten or twenty years from now, he will probably still represent the riding he represents today in the House of Commons and will probably be making the same speech and say: I have these wonderful ideas. I want to reform the tax system, but the big business lobby, the lobby of the haves in this country is so powerful that I cannot do a thing. But I will persevere.
So again, I have nothing but praise for the hon. member, and I would urge him to keep up the good work, because it is a very slow process, as the hon. member for the Reform Party said earlier.
The purpose of Bill C-70 is to implement certain measures announced in the budget of 1994, not the budget tabled a month and a half or two months ago but the one that was tabled 14 months ago. Now this is a good example of an institution that just ambles along, without realizing that some people in Canada are in a hurry for tax reform.
There are people who look at our tax system, and right now, they are probably finishing their income tax returns. They will probably file them at the last minute because, like a lot of people here, they owe money to the government. Taxpayers do their tax returns, saying to themselves: "It seems that Canada's tax system is not quite what it should be". They look at their tax returns, saying to themselves: "I get very few exemptions and tax credits". The people filling out their returns perhaps work for someone else, so evasion is not an option.
At the same time, the same people will see in the papers or on certain television programs that some people in this country are fortunate enough to have tidy fortunes, and to, it would seem, not have to pay taxes or to be able to take advantage of some form of tax evasion scheme, like family trusts, like tax credits such as the research and development credit, which in some cases may be used for praiseworthy pursuits but in reality boil down to a means of not paying a fair share of taxes.
The citizens in question who are in the process of filling in their tax returns may still recall the Auditor General's report last year, which said it was astounding that we continue to tolerate that Canadian income tax laws still contain certain tax haven provisions.
The Auditor General asked the government to review some tax conventions with certain countries, which permit businesses that we believe to be Canadian but are registered in foreign countries with laxer tax laws than Canada, to avoid paying taxes. I hope to be able to prove, in my speech, that Canada's Income Tax Act is very kind to the rich, but that there are other countries where it is even worse, where the tax legislation is even more lenient for those who make profits.
It should be noted that usually these countries are not rich ones, but rather countries which are struggling and belong to the third world. They probably benefit in some way from having such tax provisions. But on second thought, one realizes that they probably do not derive huge profits from signing these
conventions. According to the Auditor General, Canada probably loses vast sums of money in these transactions.
How is it that, in the bill before us today, which enacts certain provisions contained in last year's budget, there is no definite provision concerning tax havens, and tax conventions? Why?
I believe that the speaker who addressed the House before me, the member for Broadview-Greenwood, answered this question. It is because the lobby for rich Canadians is so powerful that the efforts of those who strive for greater and clearer fairness in the tax system are being defeated by people with huge interests.
The member for Broadview-Greenwood, speaking of eliminating privileges, loopholes, and grants in the form of tax breaks, even gave the figure of $500 billion. This is a huge amount of money. I did not do the same research as he did. I trust him.
That figure tells us that maybe there is a good part of the federal debt that we are trying to pay off, or rather that some people in Canada want to pay off by going after the middle class and even the less fortunate, through cuts in tax credits such as the age credit which has been slowly decreased year after year, for example.
Let us say I am happy to see that, on the Liberal side, the social conscience of some members is still strong enough to make them denounce the present situation, although the Liberal Party has done so before.
In the red book, the bible of the last election campaign, they proposed certain measures to increase the fairness of the tax system, certain steps which, according to the Bloc Quebecois, would revive trust in the taxation system, and would make Canadians believe there is justice in taxes after all. But once in office they no longer seem to be interested in such measures.
The speech that the hon. member for Broadview-Greenwood gave today, he could have given it with the same result when he was in opposition and the Conservatives were in office.