Mr. Speaker, Canadians have said that reform of the Income Tax Act is necessary, and I agree.
Some argue a simple system such as a flat tax or a single tax is the solution. Although simplicity may be desirable, the fact remains that the only thing simple about a flat or simple tax approach is that it simply reduces taxes for high income earners and increases taxes for low and middle income earners.
The real objectives of tax reform should be to ensure the system is fair and equitable for all Canadians.
As an example, the child care expense deduction should be converted to a tax credit. Under the current system the value of the deduction favours high income earners whereas a tax credit is of
equal value to all families. This kind of progressive change would enhance fairness and equity for all Canadian families.