Madam Speaker, I will be splitting my time this evening with the hon. member for Lethbridge.
I rise today to speak to Motion No. M-486 and in so doing to pay tribute to a group of people that go largely unnoticed in our modern society. This group of people is largely made up of women but there are some men also. This group is stay at home parents.
In today's society it is not easy to be a stay at home mom or dad. Career paths are demanding. To step off of that path can often mean various forms of reprisals or discrimination and second class status from many different sources. Fortunately many parents are willing and able to make this commitment to their family. In so doing they raise their children in the manner they think is best.
I would be remiss also if I did not recognize the extremely heavy burden that single parent families carry today. Single parent moms and dads do not have this same option and in no way am I passing my judgment on them.
As we all know, today's society has picked up the pace of living tremendously from days gone by. The cost of virtually everything from groceries and clothing to transportation and other essentials has risen faster than the incomes of most people. This continues to cause further economic strife in many families today. Overall tax relief is necessary for families now, not at some distant time in the future.
One way that some of the economic stress can be relieved is to address how the child care expense deduction is formulated. The current system clearly differentiates between single and dual income families. In addition, the expenses are only allowable if they are receipted, therefore restricting eligibility to institutional daycares.
Parents that choose to stay at home are not eligible for this same tax credit. The discrepancy between single and dual income families is apparent in how the child tax credit applies to them. One example of this is that in dual income families the lower earner must claim the child care expense deduction, thus ensuring that the value of the deduction is minimized.
The member's proposal does nothing to address this disparity and inequity that stay at home parents face under our current tax laws. Specifically I refer to their inability to claim the child care expense deduction. Rather than treat all parents equally, this motion would divide people into a multitude of different camps.
There are at least four alternative options that should be looked at closely and used as a replacement for this motion. These alternative options would better address the inequalities that exist under the current child care expense deduction.
The first option would be to give further consideration for income splitting. The second option would be to give stay at home spouses access to independent RRSPs. While both of these concepts have merit, a further examination is necessary to determine the specific financial and operational considerations of them prior to any implementation.
A third consideration is to make the spousal exemption equal to the personal exemption. In order to provide equity, the spousal deduction needs to be equal to the personal exemption of the primary income earner. In light of a more demanding economy, this levels the field for those parents who are able to and choose to stay at home.
A fourth consideration would be to convert the child care expense deduction into a refundable child tax credit for all children. Currently this is only available to those parents using commercial daycare.
At this time only 16% of families use commercial daycare. Contrary to past doctrines, current psychological and sociological research supports the concept that children become better balanced and more productive citizens when in the care of a family.
As a parent of eight and a foster parent for over 25 years to over 140 children, I strongly believe in the role of the parent and the family institution. However, I believe that Motion No. M-486 does nothing to lessen these pressures, nor does it really address the needs of today's families.