Mr. Speaker, I thank the hon. member for Capilano-Howe Sound for what I think is a very important question.
I agree with him that from a strict tax policy point of view the ideal tax would be the simplest. It would apply to everything, no exemptions. That would mean a lower rate. For example, if the GST were to apply to basic groceries it could probably be reduced by about 0.7 per cent. Everything in the country would have a slightly lower tax rate.
In asking this question the member has displayed the type of integrity and intellectual honesty which we in the finance committee have to come respect over the last three years. I commend him for this. The problem is from a tax policy point of view. It might be right but Canadians at this point are not yet prepared to accept that the tax should apply to things such as basic groceries, certain medicines, drugs and health devices.
I do not mind that debate being held. I commend the hon. member for bringing this forward but at this time I do not think Canadians are ready to accept that type of tax reform. We are having enough difficulty getting the harmonized tax in place. Maybe that is something that can be contemplated down the road.