I am used to lecturing, so I have to cut 55 minutes down to two.
I'm not here as an individual. I'm here representing a group called the Face of Poverty Consultation. It's an area group that is a faith-based group trying to work for the elimination of poverty.
Thanks for the opportunity to speak, but our group is disappointed that once again there's been very limited notification of this consultation, as in previous consultations. With proper notice, we could have submitted a full-fledged brief, as we have done in the past.
However, we are pleased with a government that recognizes the important role of government in meeting Canadians' collective needs, and thereby also stimulating the economy. We face significant social, environmental, and infrastructure deficits because of decades of program cuts and a failure to introduce new programs, such as funding for pharmacare or dental care programs. This societal deficit was caused by the hysteria over the financial deficit, which was the result of tax cuts favouring corporations and the wealthy, and of misguided monetary policy.
Budgets are also about taxes, and the tax system has become increasingly regressive, raising the tax rate on low-income Canadians while cutting the tax rate for the wealthy. Much can be done to help our most vulnerable and to increase revenues for a more progressive tax system. For instance, we could, one, restore upper tax brackets and close tax loopholes such as the 50% inclusion rate for capital gains, and two, define taxable income as total income, as is done in Quebec.
Third, we could convert tax deductions to tax credits. Brian mentioned that. Deductions generate the greatest tax advantage to the highest income tax bracket. Credits carry the same potential savings for all taxpayers; therefore, the credits should be switched to deductions.
Fourth, we could remove the boutique tax credits, which few Canadians can fully access.
Five, we could make tax credits refundable. This is crucial. If your income is so low that you do not pay enough taxes to use all your credits, you should receive a refund for the difference
Six, we should pursue tax dodgers using tax havens, and seven, we should join with other nations to put a small tax on international currency transactions, the so-called Tobin tax.
Finally, some say it is immoral to impose debt on future generations. Much of government's expenditures are investments in people, with health, education, and social assistance, and in physical infrastructure. These benefit current and future taxpayers. It is immoral not to make these investments and thus deny everyone access to quality health care, education and training, adequate income support, and safe and efficient infrastructure.
Thank you.