Mr. Speaker, I will be sharing my time with the hon. member for Mississauga West.
I am delighted to speak to this issue as a mother who works outside the home and as a very proud mother of three wonderful, talented, brilliant, charming and intelligent children, ages 17, 14 and 9.
The diverse and changing nature of working family life in Canada poses ongoing challenges to policy makers. With limited resources, government priorities have placed an emphasis on assisting families in greatest need.
The government has taken direct action to help low income families with children through the Canada child tax benefit which provides a special supplement of $213 per child under the age of seven for families that do not claim child care expenses.
Thanks to the 1999 budget, by July 2000 a typical one income family will be receiving better than twice the amount of a typical two income family for the Canada child tax benefit. The figures show $2,610 per year versus $1,270 per year. Indeed with the measures announced in the last three budgets the Canada child tax benefit will be enriched by $2 billion by the year 2000.
Canada provides a range of income tax in children's benefits, but our tax system is based on individual taxation and a progressive tax rate. Moreover, when the real cost of child care in dual earner and lone parent families is taken into account, these families have relatively less after tax disposable income than single earner couples.
If paid child care was not recognized as a cost of employment to the tax system it would constitute a serious barrier to women's employment.
With regard to pensions and retirement, parents who stay at home to care for children are recognized in several ways. Parts of the retirement system provide a basic benefit for all residents and an income tested guaranteed minimum income.
There are also provisions for an income-earning spouse to contribute to a private registered retirement savings plan for a stay at home spouse.
The Canada pension plan also has specific provisions for parents who care for children at home. The child-rearing dropout provision, for example, ensures that parents who are able to contribute little or nothing to the plan while caring for a child under seven are not penalized when future benefits are calculated.
Employment insurance benefits in Canada provide temporary income replacement to individuals who qualify. To qualify for benefits a parent must have been engaged in insurable employment prior to the birth or adoption of their child. Maternity, parental and adoption benefits do, however, provide income replacement for mothers and fathers who temporarily withdraw from paid work, including part time work, to care for their infants.
In addition, parents who stay at home after their benefit period has ended are eligible for up to five years to access a range of measures to help them return to employment if they should so desire.
Our government also continues to assist Canadian children and youth through a variety of programs. I am very proud to speak about the community action program for children and the Canada prenatal nutrition program which are jointly managed by the federal, provincial and territorial governments and which provide the kind of support that families need to help their children have a good start in life.
The 1997 budget announced increased funding for these programs of $100 million for the next three years. In the 1999 budget the Canada prenatal nutrition program was further enhanced. It received an additional $75 million over the next three years to reach many more high risk pregnant women. This is a program of which many constituents in my riding of Parkdale—High Park are beneficiaries. The community action program for children and the Canada prenatal nutrition program benefits the women's health centre and the Parkdale Parents Primary Prevention Program, which is known affectionately as the “five Ps ”, and which works out of St. Joseph's Health Centre in my riding. It is a wonderful program and has assisted many, many young children and pregnant women at high risk.
We should also remember that we have Canada student grants of up to $3,000 a year which are available to both full time and part time students in financial need who have children or other dependants.
Let us look at the Liberal government's tax principles. The Liberal government's tax is based on three fundamental principles. First, our tax system must be fair. Tax reductions must benefit first those who need them the most, low and middle income Canadians.
Second, broad based tax relief should focus initially on personal income taxes. That is where the burden is the greatest. Canadians should pay taxes consistent with their capacity to pay. We have a progressive tax system in Canada.
Third, because of our debt burden, broad based tax relief should not be financed with borrowed money. The elimination of the deficit in 1997-98 allowed the government to introduce measures providing for broad based tax relief. Targeted tax reductions into critical social and economic concerns are our first priority. Our government has put in place a responsible fiscal policy that has allowed us to preserve the valued programs that matter most to Canadians. Targeted tax relief has been provided for students, for charities, for persons with disabilities and for the children of parents with low incomes.
The Liberal approach has been based on results. With an improved fiscal situation over recent years, the Liberal government has been able to offer targeted tax relief where the need was the greatest. With the budget balanced, the government is in a position to do even more, and not on borrowed money.
The 1998 and 1999 Liberal government budgets will provide tax relief of $3.9 billion in 1999-2000, $6 billion in 2000-2001 and $6.6 billion in 2001-2002, for a total of $16.5 billion over three years so that all Canadian parents, those who stay at home and those who work outside the home, have more money in their pockets.
As the financial resources permit, general tax relief will continue to be provided, the priority being personal income taxes for middle and low income Canadians. Families with incomes of $45,000 or less will have their taxes reduced by a minimum of 10% and in some cases more.
Typical one-earner families with two children and incomes of $30,000 or less will pay no net federal tax. Families with incomes of $45,000 or less will have their taxes reduced by a minimum of 10% and in some cases even more.
As a result of the 1998 budget, 400,000 lower income Canadians no longer pay any federal income taxes. The 1999 measures will ensure that an additional 200,000 lower income Canadians will no longer pay federal income taxes. That brings to 600,000 the total number of taxpayers removed from the tax rolls due to both budgets.
We welcome a debate but we will not exploit it as a way to divide Canadian parents and Canadian women whose top priority, be it at home or outside the home, is giving their children the best future they possibly can. Let us start on that debate now.
Let us look at the disadvantages of dual earner families, people who have to pay for child care, people who do not have the ability to stay at home. We have talked many times about looking at having the whole child care benefit totally tax deductible. As we want to encourage women to export abroad they will be away from home more. We need to make sure that we have in place the good care givers and that those expenses can be deductible and have the same position as the cost of a secretary or the cost of janitorial staff.
Let us open the debate on what else we can do. Let us look at what we can do to make sure that we have in place all the things that are needed to provide the best for our children.
I would say one thing to the members of the Reform Party. I welcome this opportunity to look at all the ways we can best assist our society in making sure that our children are taken care of.