Mr. Speaker, I want to express my support for the intent of Motion No. 30. I am pleased to see an initiative to support the family coming from the other side of the House. It is support to increase personal freedom
and choice and to recognize the importance of allowing individuals to exercise responsibility over their own affairs.
To remind the House, Motion No. 30 reads:
That, in the opinion of this House, the government should consider amending the Income Tax Act to provide a caregiver tax credit for those who provide care in the home for preschool children, the disabled, the chronically ill or the aged.
One of the most important effects of this motion is its impact on child care. The present tax situation discriminates against parents who choose to stay at home with their children. We in the Reform Party believe that the care of children falls within the domain of families and that parents must have full responsibility in Canadian society to nurture and provide for children.
Current federal government programs are intrusive and restrict the choices that parents may make in deciding on the best type of care for their children. The role of government, on the other hand, is to provide a fair tax and benefit system that provides parents with the opportunity to properly care for their children in the manner of their choosing.
Unfortunately this motion's sponsor was right when he predicted that his colleagues would stand up and declare that their paltry subsidies to stay at home parents are sufficient. This statement in and of itself is ridiculous. It is even more shameful when placed in contrast to the amount of provision made available to parents who place their children in day care.
Parents are very frustrated today in that they would like to spend more time with their children but they cannot. One of the reasons is that they cannot afford to have one parent stay at home with the children because they need two incomes to survive.
An Angus Reid survey indicated that 45 per cent of women and 55 per cent of men were in agreement with the question that if they could afford to, they would stay at home with their children. Furthermore, 57 per cent of parents with younger children said they would work primarily to make ends meet and would stay at home if they could.
In the same survey, 25 per cent of women and 24 per cent of men agreed with the statement: "I feel guilty about the amount of time I spend at work away from my kids". Among parents with children under 12, the proportion who agree with this statement rises to 32 per cent. Twenty-five per cent of women and twenty-two per cent of men agreed with the statement: "I am too tired when I get home to spend quality time with the kids".
Our children are our future, the future of this country, and here we have parents lamenting about the opportunities lost for spending time with their kids. This government has recognized it. The member for Mississauga South has certainly analysed the tax system and his statement is clear: "What is worse is that a deduction is worth more to a high income earner than a low income earner. For example, someone who makes $60,000 a year and pays $5,000 for child care space receives a refund cheque from the government for $2,600. However, if someone makes only $30,000 and incurs the same $5,000 cost, their refund is only $1,800. That is an $800 difference when both taxpayers incurred the same expense for child care costs".
In other words, I gather the intent from this member's motion was to alleviate the tax burden of the stay at home parents. He recognizes it but not everyone on that side of the House does.
Whether this inequity was set up intentionally to discriminate against parents who choose to provide home care is irrelevant. It exists. The fact is it does discriminate. Despite evidence of this, the government has made no effort to develop a policy that treats all families equally, affording them the independence and freedom of choice they desire in areas of legitimate concern.
We are hearing more and more of those concerns all the time on the social side, parents lamenting about not being able to spend that time with their children.
It is imperative that this discrimination be ended. I would encourage all parliamentarians to do this by endorsing, to some degree, this motion. It should have some amendments to it. They should endorse this motion or one similar.
The same sort of discrimination occurs in the provision of care for the elderly and the infirm. Once again, the government claims to have a system in place that is sufficient for helping families that want to care for their ailing members at home.
Despite the fact that even for pragmatic economic reasons, Canadian governments are moving in the direction of encouraging more home care options, there is no evidence that the federal Liberals are planning to adjust the tax system to make home care an economically viable option for individual Canadian families. It is just not in the cards with this Liberal government.
According to the government, the infirm dependent credit which can generate savings of up to $400 or $8 a week is sufficient to help the average Canadian family know its choice to care for elderly parents at home is not being subject to financial discrimination or penalty.
That is a paltry amount when we look at the costs of home care and the cost to the federal government or provincial governments, even local governments, to care for the elderly. There should be greater consideration given to those people who want to look after their elderly parents at home through a tax break. That is not happening.
According to the government, the present circumstances surrounding the medical expenses credit do not require changing. This is in addition to the medical expenses to the home care provisions.
The 17 per cent credit for expenses in excess of the lesser of 3 per cent of the net income is available to all Canadians, but for those who have employer paid health plans this benefit can be added to cover uninsured costs, while most Canadians have to get by on this paltry credit alone.
In other words, for those who have a government health care program or a group health care program through one of their businesses compared to those who do not, the ones who have a group health care plan of course benefit from this and those who do not really have to foot the bill themselves. I do not think that has been covered adequately by not only government but by the health plans available right now.
Having expressed support in principle for the motion, I want to state clearly the need for far more tax reform than the cut and paste approach the present system is bound to.
The Reform Party has committed itself to real substantive tax reform in the form of a simple, flat and visible tax. This system will do away with the gross inequities that are part of the present system, including discrimination against home care, of preschool children and the disabled and elderly.
The member for Vegreville pointed out some of those tax breaks. I do not believe I have to repeat them.
Reform's final flat tax policy will start with a sizeable personal tax credit that will protect a larger number of low income individuals from income taxes. An additional credit will be provided for each child. We want to move that credit up from $3,000 to $5,000.
Reform is the only federal party today which offers a comprehensive fiscal alternative to the discriminatory priorities of the present government which clearly has no regard for millions of Canadian families struggling under the economic burden that is growing under this Liberal administration. We want to work in partnership with the Canadian taxpayer. That is what governments should do. That partnership involves providing tax relief to all taxpayers.