Mr. Speaker, I want to first take this opportunity to applaud my colleague, the member for Mississauga South, for the dedication and effort he has put into this and other bills which are ultimately aimed at this country's greatest asset, our youth.
I am proud to say this government is placing a priority on supporting Canadian children and Canadian families. The current income tax system attempts to strike a balance between treating all individuals the same and considering different family circumstances. As a result, taxes are collected largely on the basis of individual income, treating individuals as equals in assessing their ability to pay.
At the same time, the tax system recognizes that family circumstances affect ability to pay.
My colleague's Bill C-244 appears to be aimed at putting in place further recognition of family circumstances by providing additional measures in support of families with children and a stay at home spouse. I appreciate the principles behind this bill. Indeed the tax system already includes a large number of measures that recognize and help alleviate the extra financial responsibilities of families with children.
For example, the current personal income tax system allows the transfer of unused, non-refundable credits from a lower income to a higher income spouse in order to lower overall family tax burdens.
I am not certain that the benefits of this bill are distributed widely enough given the high costs of this measure. Only about 975,000 one earner families with children would benefit under this proposal. This represents about 8% of Canadian families.
At the same time, the total cost of this measure would be approximately $1.2 billion in reduced federal income taxes and a further $800 million in reduced provincial taxes for a total of over $2 billion. In my judgment this is too expensive given the small number of beneficiaries. For example, the $2 billion total cost of Bill C-244 would be enough to increase the child tax benefit which was received by over three million Canadian families with children by about $350 per child.
While I share the goals put forward by my colleague in Bill C-244 of ensuring that Canadian families with children are supported by the tax system, the specific provisions of the bill are not the best way to accomplish this. It would be administratively complex for both government, employers and individual taxpayers. It would distribute benefits too narrowly given its $2 billion price tag.
The current individual based tax system achieves a good balance between equity and administrative efficiency for the vast majority of taxpayers. The current tax system already contains a number of measures that recognize the special circumstances faced by families, the child tax benefit and GST credits, married and equivalent to married credits.
I can assure my colleague from Mississauga South this government will continue to work with him and as a government on improving the benefits the current system delivers to Canadian families in a fair, efficient and effective manner as the fiscal situation permits.