Madam Speaker, it is with pleasure today that I rise to speak to Motion No. 259, a votable motion put forward by the hon. member for Kamloops, Thompson and Highland Valleys.
It is very important to recognize, going back to Pericles and ancient Athens, that civilized societies have always supported the arts and culture. It is a tradition that has been valued throughout history. We should seek to maintain and improve this with policies, not specifically tax policies, but policies that support and encourage culture and the development of the arts in Canada, which has had a long and diverse history.
As an Atlantic Canadian from Nova Scotia, one of the most culturally diverse and productive regions of the country, we value a tradition of excellence. In fact there are economic opportunities for all Canadians in recognizing and harnessing the power of the arts and culture community, whether it is the Lion King in Toronto, or musicians like the Rankin Family in Atlantic Canada who started from very humble means and have done extremely well, to artists who have reached international acclaim, like Dr. Alex Colville who is a resident of my riding. These types of success stories are worthy of recognition. However, we have to do more to help artists when they are starting off.
This legislation is very sound from the perspective of the hon. member's desire to help. However there are some difficulties in its implementation and I would like to point out a couple of them.
It is very nebulous in terms of describing who qualifies and how the term “artist” fits a specific individual and whether or not that can be defined and the definition defended effectively.
Also, the hon. member points out the financial roller coaster artists are on. An artist may go for several years without payment and then receive a lump sum payment recognizing contributions made over a period of time. The best way to address that would be through income averaging. This would also address other people who are similarly predisposed through the nature of their business to receive a lump sum payment in recognition of work completed over a period of several years. Income averaging would be the best way to address that.
The average income of an artist in Canada is currently estimated at about $13,000. The issue raised by the hon. member can be addressed in a more broad based way by significantly raising the basic personal exemption for all Canadians. The Progressive Conservative task force which reported in January recommended an increase to $12,000. This would help significantly. That being the case, we should move over a period of time to raise the basic personal exemption higher.
The hon. member also recognizes that tax relief can play a very important role in helping artists pursue their chosen field and that of culture and art and keeping them in Canada. That is important because it indicates that he also recognizes the importance of lowering taxes for all Canadians to ensure that Canadians regardless of their career or life pursuits can choose to stay and prosper here in Canada. Whether it is in dot-com, e-commerce, biotech or traditional industries, Canadians can have a future right here.
The hon. member has demonstrated clearly that he recognizes the important role that tax policy plays in encouraging or discouraging pursuits of particular activities. I think in that vein he would agree with me, that we should continue to be vigilant in ensuring that the tax burdens of Canadians are not excessive when compared to those in other countries.
Clearly whether Canadians wish to pursue careers in the arts, the new economy or the traditional economy, we want them to be free to do so right here in Canada. I am sure he would share with me the need to reduce taxes for all Canadians based on his basic premise that decreasing taxes can help encourage people, this case artists, to pursue and maintain a certain level of activity.
The issue of capital gains taxes needs to be addressed as well. In Canada we currently tax at 50% of the regular inclusion rate for donations of publicly traded or listed securities to charitable foundations or institutions. Whether it is a hospital, a university, an endowment fund or a cultural activity we tax 50% of capital gains. Inclusion rates are taxed in Canada for donations of publicly traded or listed securities. In the U.S. there is absolutely no capital gains taxes on contributions of listed securities.
That has led over the years to a significant disadvantage for Canadian universities, Canadian hospitals and the Canadian arts community. It has created a disincentive for high net worth Canadians to contribute listed shares of publicly traded companies to the cultural and health foundations and universities.
I propose what we proposed at the time of the prebudget report. The Progressive Conservative dissenting report recommended the elimination of capital gains tax on gifts of listed securities. That would go a long way to encourage high net worth individuals in Canada and Canadians of relatively modest means who may have done very well in equity investing in recent years to help foster a greater environment for cultural activities in Canada. That is one way this could be addressed.
I would also be interested in exploring the examples of other countries relative to special tax exemptions for those engaged in the arts. Some special tax treatment is available to those in the arts in Ireland. We heard earlier today of the tax treatment of artists in the province of Quebec. It would be interesting to note the success of that over a period of time.
By and large there is only one party in the House of Commons that consistently opposes any support for the arts in Canada. I expect it would probably kick out a member of its caucus if it were discovered he or she had gone to live theatre. It is important that there be an almost all party commitment to the arts and cultural community in the House of Commons.
While I may disagree with the particular vehicle set forth by the hon. member to help create a better environment for culture and artistic diversity in Canada, I can assure him that the Progressive Conservative Party remains committed to work with altruistically oriented parties in the House. We must seek better ways to support and encourage the arts and all types of creative endeavours for Canadians whether they be involved in graphic arts, the dot-com universe, weaving, painting, dancing or play writing. One of the things that defines us as Canadians is our unique cultural vibrancy from coast to coast to coast and which we shall continue to have with the proper support and encouragement of all Canadians.