Thank you very much.
REAL Women of Canada is a national organization of women from all walks of life. We are united by our concern for the family, the basic unit of society. The future prosperity of our country depends on the strength of our families. We believe the family, which is the foundation of a nation, should be central to the formation of all public policy. Government decisions, especially tax and social policy, must be fair and equally beneficial to all Canadians. Government policies should remain neutral on the issue of career choice for women, including the option to remain at home as full-time homemakers. Public policy should treat women at home and women in the workplace equally.
In order to develop an equitable tax system, we make the following recommendations.
(1) End tax discrimination against the single-income family. In 2005, an average single-income family earning $80,000 a year paid $2,445 more in federal income tax than a double-income family with the same household income. Revenue Canada allows tax breaks and deductions for double-income families that are not available to single-income families. This inequity between single- and dual-income families can be eliminated by allowing the single-income family to split the family income and file separate income tax returns or by allowing joint tax filing. The government already recognizes the family unit when paying out benefits such as the GST credit, Canada Pension Plan, and old age security. It is not a new concept. Recognizing the family unit rather than the individual for tax purposes is the fairest way to achieve equality for families.
(2) Convert the child care expense deduction to a refundable child tax credit for all children. The child care expense deduction program is only available to parents with children in substitute commercial day care. It is based on the false assumption that parent-based child care has no expenses. All forms of child care have associated expenses. Child care costs exist because children exist, not because parents work outside the home. A refundable child tax credit that is available to all families would recognize and equally compensate the contributions of all parents, whatever child care method they choose. Public policy should equally assist and not discriminate against parents if they choose to care for their own children in their own home environment. All children are of equal value and their care should be so treated in law.
(3) Make the spousal deduction equal to an increased personal exemption. The spousal deduction discriminates against the full-time homemaker as it is less than the basic personal exemption, which is one of the lowest in industrialized nations. In the interest of tax fairness, the spousal deduction should be equal to the basic personal exemption, and both should be substantially increased to reflect today's cost of living.
(4) Provide tax relief for families. Taxes are the largest expenditure in the family budget. Excessive government surpluses in recent years clearly indicate there is overtaxation. Government must stop exploiting families by taxing them so heavily that they have little discretionary income, thereby forcing both parents into the paid workforce. A comprehensive tax relief plan would benefit all Canadians. It would assist families to meet their financial needs, reduce poverty, and stimulate the economy. Leaving earned income in the hands of the taxpayer is genuine government investment in the economy and social infrastructure of the nation.
(5) Government funding of day care must go directly to parents, not to commercial day care facilities. Restricting government subsidies to regulated day care facilities denies parents a choice of child care alternatives, to the detriment of every other type of child care arrangement. The one-size-fits-all government day care scheme, estimated to cost $12 billion to $15 billion a year, would likely increase taxation that would result in more and more women having to enter the paid workforce for the family to survive financially. The present government's $1,200 annual universal child care benefit, by going directly to parents who know the needs of their families and children, offers flexibility and fairness. We commend the present government for its universal child care benefit program. We believe this is a step in the right direction.
(6) End funding for special interest groups. Each year, the federal government gives grants and contributions estimated at $17.5 billion annually to numerous special interest groups, including businesses; labour unions; sport lobby groups, such as the day care advocacy groups; and radical feminist organizations. For example, the federal Status of Women agency gave over $10 million in grants to feminist groups in the past year. Government funding to feminist groups is unacceptable. Women do not all think alike. We are individuals who are extremely different in our needs and interests.
No single group or ideology can represent the views of Canadian women just as no single group can represent the views of men. Yesterday's announcement of long-overdue elimination of inefficient government programs, including perhaps the Status of Women, is an excellent beginning in what we hope will be the eventual elimination of Status of Women.
The federal government should end all special interest funding in order to provide a level playing field for all groups, avoid government-initiated discrimination, and decrease unnecessary government spending.
In conclusion, we support the prosperity of the country by supporting the family.
Thank you very much.