Finance Committee on Nov. 2nd, 2010

[Anna MacQuarrie]

Sure. The suggestion we have been looking at is using the disability tax credit eligibility criteria and targeting that at low-income Canadians in particular within that. There is a bigger plan that has actually just been released by the Caledon Institute around a basic income plan for Canadians with severe disabilities, which is the criteria under the disability tax credit.

It would be costed out. The Liberals had done some costing on this a couple of years ago, on about the $350 million mark, if we target the low-income Canadians as one step into a bigger income reform program.

[Robert Carrier, Bloc, Alfred-Pellan, QC]

Thank you. I see that you are also concerned with reducing poverty in general. You suggest that a committee be formed or a long-term plan established for the government. I hope it is going to listen to you, because this is a problem we run into constantly. When you're an MP, you are asked to address this question. There is poverty, in particular among seniors, whom the government does not want to look after, supposedly because it doesn't have the money because of its other priorities. In any event, I encourage you to continue.

[The Chair, Conservative, James Rajotte]

You have one minute left.

[Robert Carrier, Bloc, Alfred-Pellan, QC]

I have one minute left?

We are given limited time. Thank you, Ms. MacQuarrie.

I have a question for the people from the Canadian Home Builders' Association.

Your concern is stimulating home building. I wanted to get your opinion about the Canada Mortgage and Housing Corporation, which has billions of dollars in its coffers at present. Do you see a way for it to contribute to building affordable housing, which is in short supply everywhere in the country?

[The Chair, Conservative, James Rajotte]

A very brief response, please.

[Victor Fiume]

Certainly I think they had a lot of money in reserves, and I think that's put away for a rainy day. I don't think that was the intent of their funds. We're very satisfied with the CMHC's commitment to making housing affordable to the vast majority of Canadians, and right now I don't see that they have a role to play necessarily directly with reducing the costs of construction.

[The Chair, Conservative, James Rajotte]

Thank you.

We'll go to Mr. Wallace, please.

[Mike Wallace, Conservative, Burlington, ON]

Thank you, Mr. Chairman.

I thank our guests for coming. I have a few questions, so I'm going to go fairly quickly.

For our delegation from the Alberta Chambers of Commerce, in your presentation you talked about the ACCA as a stimulus to getting the oil sands moving a number of years ago, and we have moved to phase that out. Do we have to do both, then, based on these recommendations? Is the oil sand production not doing okay based on the price of oil today? Should we be looking at providing that ACCA support to other industries or other areas that need the stimulus?

[Ken Kobly]

When you look at it, certainly the production coming out of the oil sands is just fine. What we're looking at is expanding the production, perhaps bringing on new, better equipment that can increase productivity, that can also have a decrease in the effect of greenhouse gas emissions.

We do have to remember that we're in a competitive environment here for processing capacity between Canada and the United States.

[Mike Wallace, Conservative, Burlington, ON]

You have two recommendations. Is one more important than the other?

[Ken Kobly]

I'm sorry, I didn't catch it.

[Mike Wallace, Conservative, Burlington, ON]

Is one of your two recommendations a priority over the other? If we were to do one, which one would you prefer?

[Ken Kobly]

Reintroducing it for the oil sands.

[Mike Wallace, Conservative, Burlington, ON]

Thank you very much.

Just a very quick question for the Home Builders' group. This has nothing to do with party politics, but I'm in favour of having everyone register for the GST, regardless of income level. I used to have a very small business myself. I registered, so it looked like I was bigger than I was.

[Voices]

Oh, oh!

[Mike Wallace, Conservative, Burlington, ON]

But in your industry, somebody could be offering a discount for cash. They're not charging GST because they claim they're making under $30,000 a year. So you're competing against somebody who isn't charging and you are. Is that what the issue is?

[Victor Fiume]

The issue is obviously much deeper than that, but generally that's one of the reasons why their costs are lower than the legitimate taxpaying contractor: they don't remit GST, whether that's a legitimate under $30,000 or whether they just make $100,000 and still don't remit.

[Mike Wallace, Conservative, Burlington, ON]

Okay. My last question is for my chartered accountant friends and maybe the chamber.

Every year I've been here we've heard we need to simplify the tax system. Then we hear from some of your colleagues that we need ACCAs, we need to expand those schedules, we need a tax credit for home renovations, we need a tax credit for this, we need a tax piece for this. You can't have it both ways. You can't have a simplified tax system and then have individual businesses and individuals ask us for different changes to the tax form. That, in my view, adds complexity.

Has your organization—I'll pick on the accountants at this point—had to look through the tax book, which I know is nine inches thick, and point out the things that need to be changed, that need to go to make it simpler? Instead of just talking about reducing the personal income tax rate, do other significant changes need to be made? Has your organization put them on paper and given them to government to have a look at?

[Bruce Flexman]

It's a very good question, because you're right, people talk about simplification, but then when it comes to some particular program, it runs into some resistance.

We've recommended a few areas where there should be simplification, where I think there could be some major impact. Certainly, completing the process of sales tax harmonization is important. In Canada, a study was done by one of our members that shows 295 taxing points a national business can run into, and that is complexity. Anything toward harmonization helps that.

We've talked about loss consolidation and loss transfers, which is something this committee has recommended to the government. Withholding tax--a number of people have to comply and deal with the tax obligations of another party.

Coming back to the personal tax situation, I think it involves some discipline around looking at whether the tax system is the best mechanism to deliver the benefits. I think in many cases an economist would tell you no.

[Mike Wallace, Conservative, Burlington, ON]

Does your association have those issues in writing in their submission somewhere that I have not seen?

[Bruce Flexman]

Yes, we have more detailed briefs that we can get to the committee that deal with—

[Mike Wallace, Conservative, Burlington, ON]

On your website?

[Bruce Flexman]

It will be going up on the website, yes.

[Mike Wallace, Conservative, Burlington, ON]

Thank you very much.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Wallace. Unfortunately, that round is out of time.

We'll have Mr. Brison now, please.