Mr. Speaker, I rise today to take part in this debate on Motion No. 305, brought forward by the member for Saskatoon—Humboldt, asking the Government of Canada to immediately double the basic personal deduction for taxpayers over the age of 69.
It certainly is an interesting and well intentioned suggestion, since it is aimed at helping seniors maintain a good standard of living in their old age. However, I think such a measure cannot apply to all people over the age of 69 regardless of their income.
For the sake of social fairness, it is crucial that we set an income limit over which this deduction would be pointless. We could also think about a decreasing scale above the fixed ceiling.
In a report entitled A Portrait of Seniors in Canada , Statistics Canada indicates that the average income of single seniors decreases somewhat in the older age groups. In 1997, the average income from all sources for single seniors between age 65 and 69 was $21,400, compared to $19,500 for seniors 70 years of age and older. Seniors currently have access to three taxable public programs: old age security, the Canada pension plan and régime des rentes du Québec, and the guaranteed income supplement.
As in the overall population, single senior men have a significantly higher income than single senior women. In 1997, single men 65 years of age and older had an average income of $24,300, almost $6,000 more than single senior women.
Also, the income of seniors varies from province to province. In Ontario and western Canada, the income of seniors is higher than in Quebec and especially in Atlantic Canada.
To double the basic personal deduction of taxpayers 65 years of age and older would be very beneficial. However, some seniors start cashing in their RRSPs at age 70.
What would this extra money do for our seniors? Not only on a moral level would it be a sign of the state's gratefulness for its aging population, but also on a financial level it would provide a support seniors rightly deserve.
What about our senior citizens' expenses? In some cases they have medical and related expenses. At long last we would live in a society that would no longer be ungrateful to the senior citizens who have greatly contributed to the system.
Let us not forget inflation. Senior citizens' incomes do not keep up with price increases. It is wrong to believe that we have fewer needs when we grow old. It is often said that senior citizens spend less on food, clothing and entertainment. This is wrong, since like the rest of the population, senior citizens spend a significant part of their total budget on basic necessities such as food, housing, clothing and transportation.
Speaking of housing, housing costs account for a sizeable portion of the total expenses of senior citizens living on their own. In 1997, they spent over one out of every four dollars on housing. If we stay healthy, it is not our age but the lack of money that will slow us down. This extra money could make life a lot nicer for a number of our fellow citizens getting on in age.
Senior citizens make a significant contribution to society through their volunteer activities. A more generous basic personal deduction could be seen as a reimbursement for the indirect expenses incurred by elderly volunteers.
I am in favour of this motion, but the government should listen to the representations the Bloc Quebecois has been making since 1993, namely, that the tax system should be entirely overhauled. Such a reform should take those making less than $30,000 a year off the tax roll. This proposal would help not only senior citizens, but a whole category of our fellow citizens who cannot make ends meet.