Mr. Speaker, with respect to the change in personal income taxes paid in 1995, I urge the member to be a little more careful in his analysis of the tax trends. In comparing the tax burdens between 1995 and 1994 the member does not consider the one time increase in capital gains income reported on 1994 tax returns made in anticipation of the elimination of the capital gains exemption.
As a result, an unusually high amount of capital gains exemptions were claimed in 1994 which lowered the overall tax rates in that year to below normal levels. Any comparison between 1994 and the more typical 1995 average tax rates which does not take into account this fact exaggerates the rise in tax between these two years.
Growth in federal revenues since 1994 is primarily due to an increase in economic activity as reflected in the annual nominal GDP growth in the range of 4%. As we witnessed yesterday, this government has taken the first step to reduce taxes for lower and middle income Canadians.
The Reform Party may think that tax relief for 13 million Canadians, for low and middle income families, for single mothers and working parents, for 90% of taxpayers is a waste of time, but we do not.