Madam Speaker, I listened to the hon. member for Elk Island finally get to budget 1999, but in his preamble he talked extensively about the reindexation of the income tax system which occurred in budget 2000.
The hon. member talked about the flat tax. People understand that the flat tax or solution 17 is not a progressive tax. In other words, it moves the tax burden from high income Canadians to middle income Canadians. For example, a single taxpayer earning $30,000 would receive a tax reduction of 12% while a similar taxpayer earning $200,000 would receive a tax cut of 39%.
We know it is not progressive but we hear about the simplicity where people will fill in a form with their income and they will just take 17%. I heard the member talk about various deductions.
I do not have the information on solution 17. Under solution 17 will there be various deductions and tax credits? For example right now under our tax system we have deductions for RRSP contributions, pension contributions, charitable donations, medical expenses over a certain amount, union dues, professional fees and special tax considerations for people with disabilities. Will items of that nature still apply under solution 17 or will it just be a matter of taking one's income and applying a percentage?