Mr. Speaker, if I am informed correctly I am the only speaker on this subject.
Today I rise in the House to comment on Bill C-15. This bill is intended to revise certain amendments of the Income Tax Act. I think the Reform Party generally supports the bill except for a few minor suggestions that I would like to throw over to the other side of the House. The bill does, however, provide this opportunity to criticize somewhat what the hon. members on the other side are doing with our tax money.
I was very surprised this afternoon in oral question period when we were criticized for using the telephone to gather information and opinion. I would like to suggest to the hon. members on the other side of the House that it is probably a lot more efficient than using Challenger jets to go and see individuals or small groups of people, and I think we get better information on certain subjects.
The Reform Party position on income tax includes a single rate tax, with larger personal and family exemptions so that families earning below a certain income would pay less tax or no tax. We would also eliminate most of the tax deductions and loopholes which are not general in application for most Canadians. As a party we are opposed to any increases in general income tax burden imposed on Canadians by the federal government.
The flat rate system would be simpler, more sensitive and fairer than the current system.
It helps to look at a few facts and figures since 1984. The Canadian tax burden has been the largest among the G-7 countries. In the fiscal year 1991-92 the personal income tax yielded $61.5 billion which accounts for 49.6 per cent of federal revenues.
The root cause of this serious overtaxation is the problem of government overspending. It seems incredible that government after government refuses to recognize this.
In 1984 the Liberal government was defeated by Brian Mulroney and the Conservatives on a platform of deficit reduction and political patronage. The same thing happened in 1993 when the Liberals defeated the Conservatives on deficit reduction and overspending.
Thank heavens there are 52 Reformers on this side of the House now to watch the spending, even if they cannot do anything on the revenue side. Therefore we have a little more balance which I hope will be positive in this House.
I wonder sometimes why the governments have tried in vain to get the government spending problem fixed by increasing taxes. The notion that a deficit can be reduced from government revenue increases alone is a misguided one.
Federally higher taxes have failed to reduce the deficit. They have in fact stalled the economy by cutting the spending power of the consumer, by dampening new investment and diverting growth into a flourishing underground economy.
In my riding of Lisgar-Marquette agriculture producers have seen along with the rest of Canadians a reduction in our country's international competitiveness. Our income taxes to our producers and businessmen have got to the rate that the Americans are a lot more competitive just on that one simple tax.
I urge the government not just for the farmers, but for the businessmen, private enterprise, entrepreneurs and constituents, to start thinking of lowering taxes and not raising them.
The evidence is across this country. University educated professionals leave Canada for nations where the income taxes and cost of living are lower. This is after we have paid to educate them.
The government should be looking at a tax break that would help our farmers, businessmen and consumers to increase their buying power, their productivity and our competitiveness.
I was shocked to learn recently that since 1961 Canada's tax freedom day has advanced 73 days. In 1961 the ordinary Canadian paid his taxes by May 5. Today that same taxpayer has to use his wages or productivity until July 15. This type of taxation whether it is corporate tax or income tax is unforgivable.
We are rapidly approaching a point where we will be working for governments full time just to pay for their debt-creating policies and bad spending habits. If we do not break this cycle soon and allow ourselves to implement useful, carefully considered tax breaks, Canadians will see their incomes taxed out of existence.
What direction should the Government of Canada take in its tax policy?
A good example is happening right now in Alberta. Since the election, the premier of Alberta has been on a crusade to eliminate his province's $2.5 billion deficit. He is on track to achieve a zero deficit within three years. This has been done with a commitment not to raise taxes. The message has gone out that he will not raise taxes.
It surprises me that where we live in our global economy technology and freer trade will reduce the importance of political boundaries. Investments and jobs will go to places with highly skilled workforces, good public services and competitive tax rates.
I can tell you what this means to my own province of Manitoba. Recently I have seen two companies move their Winnipeg operations to Calgary. A number of small businesses have moved their production facilities from the Morden-Winkler area to North Dakota. Why? One of the big reasons is income tax, sales tax. Alberta has no sales tax. Alberta has a lower corporate tax. The income tax in North Dakota is about two-thirds of what we pay.
The blunt fact is that Canada's political establishments have overspent and are on the verge of bankruptcy. Governments take 50 per cent of the average Canadian family's earnings. Multiple layers of government drain off the highest personal income tax burden in the G-7 countries and it seems not to be enough.
Reckless borrowing by government still continues as bond rating agencies prepare to downgrade our government credit ratings. Ridiculous tax levels are transferring people's spending power to unaccountable governments. That means retail sales and job growth shrinks and investment falls. It is a simple message that government should heed, or beware.