Mr. Speaker, I thank the member opposite for his remarks. I accept his offer. I openly say in the House I will work with any member toward a simplification of the tax system, to share any of the points of view I have and to also get input from any other member as to what direction they think we should go in. The current system is not good and needs some fixing.
I know the biggest concern of Department of Finance is that in the name of simplicity we will give up fairness. The test is any new system has to be as fair as the current system.
I had discussed a single tax, a flat tax, quite a bit with the member for Broadview-Greenwood. It was reading his book four years ago that got me interested in this subject. I believe many of the problems he pointed out were true. They were true then and they are more true now.
I am not waiting for the Standing Committee on Finance. I use my opportunity to speak in the House freely to challenge the finance minister to get every committee we can on board. Even the Department of Industry should be looking at this. IT controls business. The minister knows what businesses are concerned about. What can we do to attract more businesses? It is not higher taxation levels but lower taxation levels.
We are presenting various alternatives to tax proposals. The member for Capilano-Howe Sound is presenting one on October 31 at the Fraser Institute symposium in Toronto. The member for Broadview-Greenwood will be there presenting his as well. I believe there will be officials from the government there although they will be listening and not presenting anything. I believe the Conservative Party is also looking at a proposal for a flat tax. It is important that we get this movement and momentum going. In the end, in the final analysis, if we can simplify the taxation system all Canadians will benefit, which is the important target here.
In terms of my conversion, I ask the hon. member not to hold out too much hope because I am not being converted. I am just getting tired of hearing everything about cuts, cuts, cuts. If the member does not believe cuts are important why has his government made $7 billion in cuts already?
When we campaigned on cuts our point was that when we make them we should make them wisely, judiciously and quickly because they will hurt. Whether we cut $1 billion, $7 billion or $10 billion, we will end up with a lot of special interest groups riled up and upset and we will hear all the barrage just like what is happening in Ontario now in response to the 22 per cent cutback in welfare payments. All it sufficed to do was reduce the welfare payments in Ontario to the same level as everywhere else in the country. Look at some of the extremists voicing their concerns.
Cutting is important. We feel the Liberal government has not cut enough. There is still too much fat in areas where there is subsidizing failure. Those are the areas the government is not looking at. The other program cuts it has done are excellent.
The government is cutting and then spending money on infrastructure programs, building hockey rinks on direct subsidies to regional development grants to businesses. Not all but many are wasted. That money does not need to be spent by government. Cut that out. Give the equivalent tax cut to the businesses and individuals and I will guarantee that they will do more with those billions of dollars than the government will. That is the point which I am trying to make. Therefore, we need both spending cuts and a review of the taxation system. We can have tax relief at the same time. That is my argument.
If we really want to solve the deficit, we can. Just lower spending, raise the tax rate and the deficit is gone. However, we cannot do that. We have to ignore the deficit. It is not the 3 per cent of GDP that matters. We have to look at a way to stimulate the economy and have a pro-growth taxation system so we can apply those extra revenues to the debt. That is what is important.
I thank the member for his kind intervention.