There is another damning downside. There is a real risk that for the less affluent families with a stay at home spouse, any improvement provided by the revised deduction could easily disappear. The reason is simple.
As I have pointed out, the $5 billion cost of the so-called Reform child care expense deduction has to come from somewhere, from higher taxes, from reduced spending on social programs or a deficit that puts new pressure on interest rates. Obviously raising taxes to pay for an effective tax cut is just going in circles so that cannot be the Reform's agenda, although going in circles seems to be what they do best.
Cutting social programs is part of the Reform agenda and their fresh start manifesto makes it clear. It is the needy and the less affluent who will feel the impact when welfare transfers, equalization and employment insurance are cut. All are contained in their fresh start. It should be called a phoney start. The needy and the less affluent will ultimately pay for Reform's child care break for the affluent executive.
Or we could let the deficit jump, although that hardly fits the Reform Party credo. If we did, it is the needy who suffer again under the pressure of higher interest rates, higher mortgage costs and a reduction in the business investment that fuels jobs and incomes.
As a parent and grandparent I share the heartfelt concern of every member here that there are children in Canada who suffer real hardship, whose future prospects are dimmed by the burden of poverty and neglect. As a taxpayer I understand the driving desire for fairness in the tax system and that we continue to eliminate inequities and absurdities.
As someone with a background in economics and as a legislator who understands the importance of the continued battle to reduce the deficit, I cannot support the Reform's motion today. These proposals are not based on need. Instead they will shift vital resources away from those who we as legislators are most obliged to help, and in order to do what? To reward families who already enjoy a superior standard of living. This would mean a meaner and a more inequitable Canada.
In conclusion, the child care expense deduction should be maintained in its current form because it plays an important role in recognizing the particular circumstances of working parents. When
both parents work outside the home, additional child care expenses are a necessary cost of earning income that is subject to tax. Because of these child care expenses, families with two working parents have a reduced ability to pay that tax compared to a single earner family with the same gross income. That is why the deduction supports a tax neutrality that makes for a fairer tax system.
The choice is clear. We can support this motion if our goal is a meaner Canada with a more inequitable tax system, or we can reject this proposal and by doing so show that we stand for a country marked by compassion and fairness.
I urge hon. members to vote no because that is what good conscience and good government demand.