Thank you, Mr. Chair.
The MacKillop Centre for Social Justice thanks you for this opportunity to appear before this committee.
We will start by also recommending a poverty eradication strategy and saying that there is tremendous support for this in the Canadian public. Nowhere is that support higher than in the Atlantic provinces.
The federal government has an important role to play in the establishment of a long overdue poverty eradication strategy for this country. We urge the government to commit funds immediately to match the efforts of the provinces and encourage them to enlarge their efforts.
In times of economic crisis, such as the current one, social programs are often created for the benefit of Canadians. Canada does not have an official poverty line. We need one. Until it is established, we suggest that the Statistics Canada after-tax low-income cutoff is a suitable measure.
Countries such as Ireland have shown us that there are other very important measures and indicators of poverty for western countries. Steps must be taken to consult Canadians, especially those in poverty.
With our tax system, it will be difficult to eradicate poverty in this country unless changes are made to the current system, which favours tax breaks to the wealthy over the needs of those in poverty. The result is a growing gap between rich and poor. This must not be allowed to continue.
In no way should the Canadian government give in to demands for a flat tax. We need a much more progressive tax system than the current one.
Business-funded political parties keep promising tax deductions, especially to the wealthy, while at the same time people are led falsely to believe that we cannot afford such essentials as our public universal system of health care, as well as other essential social services, including child care, housing, better systems of income for adult workers, and programs for aboriginal people.
Canadian workers, the unemployed, the self-employed, people with disabilities, and seniors on modest pensions are feeling the crunch of less social support and fewer social programs. Instead of federal tax breaks and subsidies to the energy corporations in Alberta that destroy the environment through carbon emissions and fuel the U.S. war economy, Canada needs to learn from Norway, where corporations are made to pay their fair share. Some of this money could go toward tax incentives to establish sustainable economic projects that will build a green economy for this country.
The bottom fifth of all income earners has seen incomes drop by 31% since 1984, with average personal incomes declining by 6%, the biggest drop since the Great Depression, while the wealthy have become wealthier.
We recommend that the Standing Committee on Finance seize the moment to begin the long road of making right the wrongs present in our society, especially the way the most vulnerable are treated, and we ask that the committee also recommend that we play a larger role in fighting global injustices and inequalities.
We recommend that Canadian tax policy be reformed to make taxes more equitable and to help eradicate poverty in this country. We recommend that unearned income be taxed at the same rate as earned income; that corporate tax rates be returned to pre-1980 levels; that a green tax be placed on all toxic market commodities according to their lifestyle carbon imprint; that incentives be given to Canadian businesses and citizens to lower their carbon footprint; that banks be made to loan a certain amount of their money to green economy projects; that incentives be given to Canadians to reduce fossil-fuel energy consumption; that there be no tax cuts; and that low-income Canadians be helped through effective and compassionate social programs that reduce costs and put new income into their hands.
On the international level, the Canadian government should take the lead in promoting a tax of one-tenth of 1% on international financial transactions. This tax would raise billions of dollars internationally to help fight poverty around the world. The committee should urge as well that taxes on transnational corporations become transparent.