Mr. Speaker, I am going to surprise my hon. colleague by saying I agree with him, there should be a fair tax system.
The Reform Party has said all along that our taxation system should be fair. We believe in a flat rate tax. We think it is certainly reasonable that if a person makes twice as much money he or she should pay twice as much tax. However, the real problem is one of spending.
When we look at what the Liberals have done in terms of the budget, which is what we are debating here, talk about a tax grab from the middle class, the poor and basically from everyone which is being given on the fuel. They tell us a 1.5 cent per litre tax. That is inaccurate. It is a 1.605 cent tax per litre because what we are forgetting is that on the tax is added the GST.
The present government likes taxes on taxes. I did a little calculation. Let us say I want to buy $1 worth of gasoline. I have to earn $2.78 in order to buy it. When I earn $2.78, $1.11 is income tax, leaving me with $1.67. Then I go to the pumps and 67 cents is needed for gasoline tax and I am then left with $1 of gasoline.
When I buy $1 of gasoline and pay $1.78 in tax that is a tax rate of 178 per cent and that applies to everybody, the rich and the poor alike. Everyone who benefits from our transportation system and everyone who drives to work pays that tax. That is a tax grab on the poor as well.
We think taxes ought to be reduced in total. Income tax should be a flat rate tax which is fair. All the areas in which people can avoid paying their fair share of taxes should be reduced.