Mr. Chair, the proposed amendment would provide the Governor General with a net salary of $137,000, effective January 1, 2013, but actually would not change the proposal to make the Governor General's salary taxable.
There are a number of problems with the proposed amendment. First, it's not clear what “net salary” means. Is the proposal meant to provide that the salary is to be net of related expenses, but then be subject to income tax? If so, this change would have a material negative impact on the Governor General by significantly reducing the effective remuneration for holding that office. Even if we accept that this amendment is meant to refer to what the Governor General receives after applicable income taxes, it is contrary to the intention and the measure in this bill, which is to make the salary of the Governor General subject to the same exact rules as salaries received by other Canadians.
Other Canadians do not receive a certain salary after tax. They receive a salary and are taxed on it. That is what this measure does, and that is what we deem as being fair.
As a practical matter, an individual's tax liability is ultimately determined at the end of each year on the basis of income from all sources. Collecting the information necessary to be able to pay the Governor General the proper salary would be incredibly intrusive into the personal affairs of each and every Governor General. Every year the Governor General would have to disclose every aspect of his or her personal income tax situation, not to Canada Revenue Agency for tax purposes, but just to set the Governor General's salary in the first place.
These are the problems we see with the amendment.
Once again, I have to rebut what my colleague said about any suggestion that there is an increase in salary for the Governor General. This measure simply makes the salary of the Governor General taxable. There is absolutely no increase. It is just making it fair with what every other Canadian has, and that is a taxable income.