Madam Speaker, there is absolutely no question that the government thinks it is very important to make sure all charitable organizations obtain contributions and recognition for the work they do. I and everyone else in the House would certainly support measures to make sure that political contributions and the work done by charitable organizations are recognized.
This is a motherhood issue when we stop to think about it. On the one side we can say that charitable organizations fill many gaps that government can no longer afford to pay. Charitable organizations can broaden the spectrum and add to the quality of life of many people. That is a given and is very true. Every one of us sees it in our communities.
I commend all charitable organizations and all the work they do. This bill however brings bring into existence a change in tax policy and suggests that whatever we do on the political contribution side should be matched equally on the charitable side. In that kind of scenario I question whether both of those measures have been set up for very specific reasons.
It is my belief that charitable organizations have been treated relatively well by this government. We have moved the agenda forward. We have increased the tax forgiveness for charitable organizations over the last four years even though we have had very tough times. The government is no longer spending $42 billion more than it is taking in. The direction has been to make sure that there is a balanced approach to this question.
Talking against a tax structure for charitable donations might be like talking against apple pie. The reality is that for the first $200 of charitable donations, the dollar amount people can have as a tax deduction is in the neighbourhood of 30% whereas for the first $200 of donations to a political party, the amount is somewhere in the neighbourhood of 60%.
There is a little better tax break for very small amounts given to a political party. However, as the tax structure is built, those people who give larger amounts to charitable organizations receive a far better tax break. After that magic figure of $200, people who give for example $100 to the heart association, $100 to the cancer association, $100 to a walkathon or some other local fundraiser, will get a better tax break after they have given $200 than before.
The point is that this government cannot afford to chop money out of its operating budgets because we would be placed in a position of reducing service to the Canadian population. In talking about the cost of this motion, without taking into account all of the donations above $200, it is my understanding on the first amount where this bill may equalize the political contributions and the charitable donations, it would cost the government in the neighbourhood of $125 million on that first $200. That is a pretty hefty cost.
A lot of work has gone into every government department to make sure that they streamline their spending, hold wage increases to employees, make certain that all things happening in every department to deliver the most vital services at the least expense have been looked at. Now we hear from the opposition to spend money here, spend more money there, give tax breaks here, give another opportunity there. At every juncture we are being asked to run this country using the scenario it ran on for so many years: if there is a problem, run the wheelbarrow full of money out and resolve the problem; if somebody wants money for a venture or somebody is having a problem, government can solve it by spending more money.
We came out of that. This country is doing better on the world scene today. We are doing better on the employment initiatives. We are doing better on delivery of service to Canadians. We are doing better because we have not moved to a different course of spending more money than we can, reducing taxes to buy in many cases the favour of a few.
At this point it is important that the government maintain the course we are on. We have to do the best we can for those making political donations. We have to make certain the rules and opportunities are there for those offering services to Canadians so we can help them as well as we can. However, I am frightened because day after day I hear more people suggesting in the House that we have money to spend and to give away, that we do not need to take in as much revenue. All those arguments are there, but that will inevitably lead us to our own defeat.
We must maintain a course of being as prudent as we can be. We must maintain a course of making sure we deliver services as efficiently as we can. We must make sure we maintain what Canadians have elected us to do, to be prudent in the decisions we make in the House and to make certain we get this economy back on track.
Some people say that since we have $3 billion to $6 billion more income than what we are spending, we should spend that $3 billion to $6 billion. I remind everybody in this House that there is a debt of $600 billion which must be paid for either by people today or by future generations. We cannot and should not get into a situation where we do anything except stay the course and try to be as fair with every organization and citizen as we can be.
Although it is a motherhood and apple pie issue in many ways where some say we should give them a better break, the other side of the coin suggests that if we continue to move in that direction we will be going back to old ways which inevitably will be bad for Canadians.