Madam Speaker, why is it 15 per cent was the question. Studies have been done on tax policy throughout the world and I will refer to the European Union; we do not want to use the Canadian example. Studies will tell us that consumption tax rates in excess of 15 per cent are almost impossible to collect. I suggest that the province of Newfoundland was probably having a considerable amount of difficulty collecting the 20 per cent tax.
If the tax is reduced to 15 per cent, and it will also be in a value added tax system, more revenue will actually be collected. I suspect the tremendous amount of efficiencies in doing a rate reduction will actually expand the tax revenue in those provinces. In fact the exposure to the federal government will be even less than has been suggested.
The second matter the member spoke about was the concept of a hidden tax. I for one have always thought it was important to have
the tax visible. When I served on the committee and went across the country, I listened to Canadians. They told me over and over again that they do not want to see it. The bottom line is we have turned the country into a nation of bookkeepers and accountants.
If we go to Chicoutimi and there is a dress on a rack which is $100, we cannot figure out how much it cost when we leave the store. People do not to deal with it.
If we want to make it a visible tax, we should make it visible here. If we want to change that 15 per cent to 16 per cent, we should do it in this forum so that everyone can know the rate is changing.
When we go to a gas station, we do not get out of our car to check the metre to see how much tax was added. Maybe we should. The bottom line is most people do not want to do it.
We are doing what people have asked us to do. That is the democratic process.