Thank you for inviting us to appear before this committee today.
REAL Women of Canada is a national organization of women from all walks of life and from differing economic, social, cultural, and religious backgrounds. We are united by our concern for the family, the basic unit of society.
Since our incorporation in 1983, REAL Women of Canada has promoted the equality, advancement, and well-being of women, recognizing them as interdependent members of society, whether in the family, workplace, or community.
The federal Conservative government is to be commended for eliminating some forms of discrimination against the family in taxation. Positive developments from a family perspective include: pension splitting for retired Canadians; making the spousal tax deduction equal to that of the principal earner; providing the $2,000 tax credit for parents with children under 18 years of age; and raising the basic personal deduction in personal income tax.
We have four recommendations.
We recommend the end of tax discrimination against the single-income family. Federal tax policy discriminates against the career choice made by women who choose the career of full-time homemaker. For example, the child care expense deduction program provides to the double-income family $7,000 a year in tax deductions for children under seven and $4,000 for children seven to sixteen years of age, but makes no similar provision available to parents living on the salary of one parent and caring for children at home.
This inequity is based on the false assumption that parent-based child care has no expenses. In reality, all forms of child care have associated expenses. All children are of equal value, and their care should be so treated in law. Public policy should equally assist parents if they choose to care for their own children in the home environment. Child care costs exist because children exist, not because both parents work outside the home.
Another way to correct inequality in family taxation would be to recognize the family unit rather than the individual for tax purposes. Income splitting would address this preferential treatment for certain family configurations such as double-income families.
Our second recommendation is that the universal child care benefit possibly should be increased. Canadian families appreciate the popular universal child care benefit of $100 a month for children under six. We recommend maintaining this benefit and perhaps increasing it.
Number three, government funding of day care must go directly to parents and not to day care facilities. Universal day care, now called early childhood education, denies parents a choice of child care alternatives by restricting government subsidies to regulated day care facilities, to the detriment of every other type of child care arrangement. This one-size-fits-all scheme will inevitably increase taxation, which will result in more and more women having to enter the paid workforce in order for the family to survive financially.
In Canada the provinces subsidize day care. Approximately $10,000 a year is given to day care facilities for each child in day care, whereas a child cared for at home by a parent receives no equivalent support. No child should be given preferential treatment simply because both his parents are employed.
It is essential that child care legislation support a flexible system so that child care can fit the different needs of Canadian families. Fairness would occur if funding for day care went directly to parents, not to day care facilities.
Number four is to end funding of special interest groups. Status of Women Canada's so-called anti-discrimination objective is equality and “full participation of women in the economic, social and democratic life of Canada”. Unfortunately, this is interpreted to exclude the contribution made by women who offer care and formation at home for their children, family members with health problems, and elderly relatives.
This is a serious bias. We have called for the disbanding of this department for many years. This department provides funding or grants for many women's organizations. No single government agency or ideology can represent the views of all Canadian women, as no single agency or ideology can represent all Canadian men. In order to provide a level playing field for all groups, to avoid government-initiated discrimination, and to decrease unnecessary government spending, the federal government, we believe, should end all special interest funding.
In conclusion, I would like to emphasize that the future of our country depends on the strength of our families. We believe that the family, which is the foundation of the nation, should be central to the formation of all public policy.
Thank you very much.
