moved
Motion No. 1
That Bill C-59 be amended by deleting Clause 33.
Mr. Speaker, in the last budget, the federal government decided to reduce the age credit. As we know, all taxpayers aged 65 and over can ask for a tax credit equal to 17 per cent of $3,482 at the federal level and 20 per cent of $2,200 in Quebec.
This credit is non-refundable, that is, it applies to the tax payable; the excess portion is non-refundable but can be applied to the spouse.
The amendment made in the last budget is aimed at reducing this credit for seniors with a net income exceeding $25,921. This threshold will be indexed annually to the increase in the consumer price index, and this measure will be implemented gradually.
We oppose this measure because it reflects, in our opinion, a deliberate effort by the government opposite to go after the middle class, as demonstrated by the so-called social program review and by a proposal to cut UI benefits, since some recipients can earn between $25,000 and $50,000.
By targeting only those with incomes under $25,000 or $18,000-we are not against helping them, quite the opposite, as you know-by cutting off ties between those with incomes over $25,000 and those making less than $25,000, the government goes beyond simply bringing universal measures to a sudden end. It is more serious than that. Universality is not just a buzzword; it also means solidarity.
Does the government think that a senior citizen with an income of $25,000 is a rich taxpayer? Yet, it is attacking this very group, who can now enjoy themselves a little after working hard all their lives. But on $25,000 a year, you still need to manage your money carefully throughout the year if you want to enjoy yourself. It is those people who are targeted by the amendment to this tax credit.
For government that claims to be liberal to be attacking the middle class is a serious matter, because the middle class is the one largely responsible, by its work, for the financial support of government and, more importantly, the one responsible also for creating solidarity. But the middle class does not want to be the only group to pay. What is happening? Instead of reforming the tax system, as is urgently needed, the governement attacks the middle class, the unemployed and the less affluent. We were non-equivocally reminded of this fact at the rally held yesterday in Montreal by community groups and central labour bodies denouncing the fact that the proposed Axworthy reform-and it is the same thing with this change to the age tax credit-attacks the middle class, the unemployed and the less affluent instead of attending to the much-awaited review of the Canadian tax system.
Let me remind you that speaking of the budget, Lloyd Axworthy himself stated in 1985, when he was-