Madam Speaker, the motion before us today, brought forward by the hon. member for Kamloops, Thompson and Highland Valleys, states that the first $30,000 per year earned by artists, writers and performers be exempt from income tax.
I believe the intent behind the motion is very admirable. Supporting our remarkable and diverse community of artists such as poets, writers and visual performers is crucial to maintaining our identity as a nation. It is absolutely vital that we possess the necessary tools to safeguard our own culture and to tell our own stories.
As members know, the government is already devoting considerable resources to ensuring that our artistic and cultural industries remain prosperous and healthy, particularly as Canada enters a new millennium. These important resources are made available through a number of organizations and institutions and show the government's commitment to maintaining excellence in the arts.
I take this opportunity to highlight some of the main institutions, programs and policies available to help Canadian artists, writers and performers in pursuing their chosen craft.
For example, the government has implemented a considerable increase in the financial support for the Canada Council, adding $25 million to its annual funding starting in 1997-98. A further $10 million were announced in the budget presented to the House on February 28, 2000. In 1998-99 the council awarded nearly 5,700 grants for a total of $112 million in direct support for Canada's artists and artistic organizations.
Our National Film Board is known throughout the world for its quality reputation. The film board is dedicated to producing and distributing films, audio-visual and multi-media works which reflect Canada to Canadians and to the rest of the world. For over 60 years the film board has played a very significant role in Canadian and international filmmaking.
The Department of Canadian Heritage also offers a number of important programs, including the cultural initiatives program which facilitates the involvement of artists from across Canada in over 150 national and international arts festivals and special arts events. Canadian Heritage also operates the national arts training contribution program, supporting national institutions that prepare young Canadians for professional careers in the arts.
Turning our attention to the tax system, I would note that it too already includes a number of favourable provisions targeted to Canada's cultural sector. For example, artists may deduct the cost of creating a work or art in the year in which the costs are incurred, instead of when the work is ultimately sold. Moreover, employed artists and musicians are entitled to deduct certain expenses against their employment income, deductions which are not available to other employees.
Other important tax provisions for Canadian culture include the tax credit for Canadian film and video productions, write-offs for Canadian art purchased by unincorporated businesses, flexibility in evaluation of charitable gifts from an artist's inventory, and the capital gains tax exemption on gifts of cultural property.
Turning to the motion before us today, I once again wish to applaud the member for Kamloops, Thompson and Highland Valleys for seeking to provide additional support to our cultural community. However, I feel that introducing a tax exemption for income earned by certain individuals such as artists may not be the most effective tool for achieving this result.
As I have already noted, the tax system recognizes the circumstances of artists and musicians in a number of ways. These special provisions ensure that such individuals are not penalized as a result of various circumstances unique to their professions, such as the necessity of maintaining valuable musical instruments or the difficulty in valuing art pieces donated from an artist's inventory.
However, outside these special cases which the income tax system already accommodates, it is not clear that artists, writers or performers have greater needs than other individuals with comparable incomes. The tax system should as much as possible treat individuals in similar circumstances in a similar fashion. Thus, to provide a special tax exemption to an individual simply because he or she engages in artistic activities would be very difficult to defend on equity grounds. It would also lead to requests for similar treatment from other groups that also believe they are deserving of special status.
As to tax relief, I think that the government's approach of sustainable general tax relief is the right one. The five year tax reduction plan adopted by the government ensures real and significant tax relief for all taxpayers regardless of their chosen career.
Naturally, artists and writers will benefit from these historic tax reductions like all other taxpayers.
In conclusion, it is my view that the motion, well intentioned though it is, should not receive the support of the House at this time.