Mr. Speaker, I have a duty to rise today to speak to Bill C-59, an act to amend the Income Tax Act, since this bill includes several tax provisions that were announced in the last budget almost a year ago. Consequently, I will support the amendment moved by my colleague, the hon. member for Mercier.
This bill reflects an effort to correct certain shortcomings in the tax provisions, but I am not sure that the goal will be achieved since this government managed to divide Canadians and Quebecers into several categories: the rich, the poor, and the disadvantaged.
Once again, the government is going after the most disadvantaged in society. It wants to take half a billion dollars from the pockets of seniors by reducing their age credit. That is really outrageous. A lack of money precludes any kind of participation in community life. Take off your masks and tell us clearly what you have in store for our seniors, a growing number of whom live in poverty.
Is this the kind of life the Liberal government has in mind for our seniors? As you know, in 1992, the average income for seniors was $18,000 a year. Furthermore, 21 per cent of seniors are low income earners living at or below the poverty level. The government now thinks that a senior with a $25,000 income is rich. The provision in this bill is based on these people's low income. It would be unconscionable to collect such amounts when there are so many ways to get more money elsewhere.
Seniors are now eligible for non-refundable tax credits. Many of them-from across Canada, I think-are very concerned that this credit might be cut or eliminated altogether. The Liberal government decided to reduce this tax credit. This amendment is aimed at reducing, for seniors with a net income of $25,921 or over, the tax credit by 15 per cent of the amount by which the individual's net income exceeds $25,900. This credit will be completely eliminated when individual income reaches $49,000.
The government wants to implement this measure gradually over two years. In other words, half of the amount calculated will be eliminated in 1994 and the other half in 1995. This measure will affect about 250,000 senior citizens. Of that number, 170,000 are considered to be on low incomes. This verges on outright injustice to seniors on average incomes, and all for the sake of an estimated savings of $20 million in 1994-95, $170 million in 1995-96 and $300 million in 1996-97. It is outrageous, when we realize that this money will come directly out of the pockets of our senior citizens.
Need I recall that the Liberals were the first off the mark to criticize the Conservatives for cuts affecting senior citizens? In fact, on June 18, 1985, when the Minister of Human Resources Development was in the opposition, he said: "The fact of the matter is that the government has substantially reduced in a regressive way the purchasing power of senior citizens. Not only has their direct income support been taken away, but their purchasing power has been taken away. As if that were not enough, a third whammy is added through reductions in transfer payments to the provinces by $2 billion between now and 1990. The Budget is clearly a multifaceted attack on the income base of senior citizens".
And where is the Minister of Human Resources Development, now that he has changed his tune? Now that his party is in power, the minister's policies are right in step with the same policies he used to criticize so roundly, and I am referring to the reductions in transfer payments and the purchasing power of senior citizens. This government was all about promises and a red book, but now they are in power, the red book is fading fast.
The Prime Minister is a good example. After promising he would not raise taxes, he is now leaning towards taxing RRSPs, another way to increase the tax burden on the middle class. This will lead people to put less money in their RRSPs, at a time when public pension funds are showing signs that they will be unable to meet the needs of an ageing population.
The government can get its half billion dollars somewhere else. Do something about tax evasion! Many hundreds of millions of dollars are locked up in family trusts because of tax treaties with foreign countries. The perfect tax haven.
This government has a funny way of showing its recognition to people who have worked hard all their lives. What does it want? Let senior citizens enjoy their well-deserved retirement in dignity.
Unemployment is over 10 per cent. Youth unemployment is close to 17 per cent. In Quebec, more than one million people are on unemployment insurance or welfare. The government should be doing something about unemployment, for a change. Let us restore the pride of Canadians and Quebecers by putting them back to work. The government should stop taking money from the poor, but Bill C-59 is one more step in that direction, with its measures against senior citizens.
The Bloc Quebecois condemns this bill which does nothing to help this section of our population and will merely add to the number of poor people in our society. In concluding, I want to ask the following question: Is this flexible federalism? If so, this is one more reason to get out.