Mr. Speaker, I am continuing an interrupted speech. The speech was interrupted about two weeks ago when 1.30 p.m. rolled around on a Friday afternoon in the middle of my riveting presentation.
I do not know whether I hold the record on the interruption of speeches but I do remember one in which my speech was interrupted in early December. I do not remember which year but I completed the speech the following year in November. I remember that because it was an 11 month interruption of a speech.
The bill we are debating today is a bill on taxation. I am sure all members present have taken the time to read Hansard from two weeks ago Friday and have re-read the first part of my speech so they have the continuity. In case some have not I will reiterate again that the theme of my speech is the insatiable appetite of the government for tax dollars. Bill C-47 is about taxation.
I talked about the three different ways in which the government can tax individuals and corporations. There are actually four different ways in which the government can earn revenue, directly and by taxation. The three different ways of taxation are: first, taking a portion of everything that a person owns, property taxes for instance; second, taking a portion of everything that we earn through income tax; and third, taking a portion of everything we spend, the much loved GST is an example of that. Many provinces have provincial sales taxes as well.
I live in a province in which there is no provincial sales tax. To my knowledge we have never had a sales tax in Alberta. Until that hated GST came in it was actually wonderful to go to a store. If someone bought something that had a price of $5.99 and gave $6.00 in payment, a penny was given back. There was no computation of a tax. There was no sales tax. I would propose that perhaps the lack of a sales tax was one of the things that helped to make Alberta so strong that it is now one of only two provinces that is a net payer into the scheme of equalization.
I went to school in Portland, Oregon for a year and was interested to find that at least at that time Oregon was one of only two states that had no sales tax. Somehow I am attracted to governments that do not have sales tax.
Economists tell us that sales taxes are a better form of taxation than income tax and that reducing income tax actually has a greater positive effect on the economy than the reduction of sales taxes. However, there is a huge psychological difference to that. When one earns money, especially if the income tax is deducted at source, one never notices it in a way because one just does not ever get to see it. If we pay too much tax at the end of the year at filing time, we find that there is a bit of a rebate and everyone is happy that they got money back.
I do not know how many people stop to think that it is money the government has taken away from them. It is part of their earnings. The government took more than it was entitled to and is now giving it back. We should be happy that it gives it back in the same sense that we would be happy if someone robbed us and gave us back the money.
It is our own money and it is important for us to never forget that when it comes to taxes the money belongs to the person who earns it. Governments who take part of that money away, either through income taxes or sales taxes, need to always be cognizant of the fact that they are trustees of the money, spending it on behalf of the public for the public good.
I am very incensed when I find the present government taking taxpayers' money and way too often spending it for the government's good and not for the public good. I will give the House an example of that. The Minister of Industry happened to be in my riding about a week ago, where he made a great speech and held a meeting at one of the new hotels. All the local dignitaries were there. Everybody was very impressed way out there in rural Alberta in the community of Sherwood Park, which is Canada's largest hamlet with a population of around 45,000. It is still considered a hamlet because it has never been registered.
At the meeting he made some announcements about federal government spending. What was curious was that these were not new announcements. They were announcements that had already been made in the budget. The government is great at announcing and announcing. It seems as if the government multiplies the use of these announcements for political reasons.
The minister basically said “Are we not wonderful?” because the federal government was giving out some money to be used for research. He said that this would be a great boon to our economy, our competitiveness, our creativity and our productivity. He used all the nice buzzwords. He gets a lot of mileage out of announcing $150 million. It takes just the snap of a finger for a Liberal to announce $150 million. A couple of Challengers and all sorts of other things can be bought with $150 million.
There he was announcing it, but I contend simply this: If that money is to be spent for the public good, why does he not just send a cheque? If the money is to go to the university, a cheque should be sent to the university along with instructions on how to use the money and how to report on its accountability. Instead we find the minister making a big announcement.
In another example, I remember the Prime Minister announcing the opening of a call centre in, I believe, Prince Edward Island. The government, through HRDC, helped to fund the introduction of this call centre. The reason I mention this is that we are talking of taxpayers and using their money in trust on behalf of the citizens of this great country of ours. There was the Prime Minister announcing to the people of Prince Edward Island that a grant would enable them to have a new call centre and would provide employment in their community.
On the surface that sounded pretty good, but the reason I remember it is that the response was incredible. I heard about it on the car radio when I was driving. The person who was given this money, and I cannot remember if it was the local mayor or the entrepreneur of the business, told the Prime Minister that he had come through for them when they needed him and they in turn would show the Prime Minister they would be there for him in the next election. That was the gist of the statement.
It ought not to work that way. If the money is needed, it should be spent. If it is not needed, it should not be spent. It is not right to tie it together with the expectation of votes in return. I think the Prime Minister would have been right on if he had told that individual that giving him the money had nothing to do with votes. This was taxpayers' money and for some reason it was taken away from people who earned it and brought there so others could earn some money. I know there is an argument there. We could say it created a new business and jobs for those people who then would generate revenue and pay income tax. They would be paying into the system instead of drawing out of the system.
I know we can make those arguments. Maybe some of them are even justified, but I object strenuously when taxpayers' dollars are used for political purposes, as in my riding with the Minister of Industry making an announcement that had nothing to do with Liberal politics or like the Prime Minister in Prince Edward Island making that announcement.
Here we are talking about increased taxation. Make no mistake about it. Bill C-47 increases the revenue of the federal government by about a quarter of a billion dollars. That is what this is about. It is about increased taxation. It is a rationalization of some taxation. In the case of cigarettes, for example, in different provinces the rates are increasing incrementally. As I said in the previous part of my speech, based on the amount by which those taxes were decreased previously, they are now being restored.
I think I have made my case very strongly. I am sure that all the members here, having listened to my argument, will now have a new resolve in their hearts to never, ever misuse the money that has been given to the government in trust by the taxpayers of Canada to be used for the public good. I hope that is true.
It may surprise the House to know that my present inclination is actually to vote in favour of the bill, a bill that would increase government revenue and taxation. My primary reason for voting in favour of it is that it will increase the price of and thereby hopefully reduce the consumption of cigarettes. I have given speeches on this topic in various contexts before. Whether it is my colleagues in the House, my friends back home or one of my staffers who may be watching this speech right now and who is currently on a quit smoking program, I encourage them to carry through with quitting smoking. Perhaps this tax helped that staffer to make that decision, although I have not actually discussed that detail with him. I would like to encourage him to carry through with that resolve for health reasons and for economic reasons. The best thing we can do is to discourage young people from smoking, thereby ruining their health.
There are also the costs of smoking. I have related before how when I taught mathematics I encouraged my students, as part of the work they did in learning to use their calculators and computers, to compute how much they would have in the bank if instead of smoking they were to put that money into an RRSP over their lifetimes. I used to have them evaluate the mathematical formulas, math and finance exponentials and things like that.
After they evaluated that, which came to around $1.3 million as I recall, I asked whether they knew what they had computed. I went through it and showed them that the 45 meant 45 years from the age of 20 when one started working until 65 when one retired. The .1 at that time was 10% the rate of return that one could get on an RRSP and the $1.3 million was the balance in the RRSP on retirement. They could retire with $1.3 million in the bank if in their lifetimes they would put their smokes money into an RRSP instead of blowing it up in smoke, so the economic argument was strong. I am proud to say that I had a number of students who actually quit on that account. That is my primary reason for voting in favour of Bill C-47. I regret that my time has now elapsed, but I hope that the Liberals will hear my message and act on it.