The member says it is official. According to the law that is in fact the case. Perhaps the hon. member is not making reference to the law, but what I am stating is in fact what the law states.
In contrast, tax assistance for charitable donations is greater for amounts in excess of $200 in order to encourage larger donations to charities. It is a policy decision and one that we feel is the correct one. Indeed in the case of very large donations tax credits may be claimed for donations up to 75% of a taxpayer's income in a given year. Tax credits may also be carried forward for future years should the 75% limit be exceeded.
The donations of small amounts to charities is not strongly motivated by the availability of tax assistance. Consequently the greatest effect of the proposal would be the increase of fiscal cost of tax assistance according to donations that would have been made in any case.
Charities themselves would receive little benefit. Under the existing tax policy the level of tax assistance accorded for most charitable donations results in roughly a 50:50 partnership between government and the private sector in support of charities.
The government, while adhering to and supporting the intent of the hon. member's bill, cannot support it. The current design of the charitable donations tax credit acts to encourage larger donations while recognizing the value of smaller donations. It is appropriate. The fiscal cost of the measures would be large, approximately $125 million per year, for what in fact would be of little effect on the level of charitable giving.
The greatest effect of the measure would be the increased tax assistance to donations that would have been given in any case. Consequently charities would receive little additional support and therefore I cannot support the bill.