Mr. Speaker, it is good to have the opportunity to speak to the budget implementation act.
Preparing a budget is a complex issue of course and we relate it to the way we prepare our own budgets, personal or family. In my case, when I was with the municipal government, there was a process that we used to establish which indicated what the budget would be and what would be needed from the taxpayer.
First of all we would start off with a long term plan of either five years or 10 years. In my case at that time, we knew what position we wanted the municipality to be in at the end of those years. We created budgets and priorities to take us down the path where we wanted to be. A long term plan would be put together by community members coming together as well as municipal councillors and mayors on what they wanted out of their communities in the years to come and what their priorities would be. It was essential for us to have that give and take in debate to know exactly what our priorities should be, what the taxpayer felt was reasonable as far as tax increases, and where they wanted their tax dollars to go.
I do not see that in the budget that was prepared. It seems to me that it was done with a broad brush, trying to appease a lot of people, but ending up appeasing no one, because no one got what they felt was necessary. Through this budget process there was no long term strategy, no long term plan, and no positioning of Canada in the world. To me, that is the kind of function that is necessary. It positions Canada and our citizens in the world and it moves along a path to where we want to be.
We go out across Canada with the finance committee. We hear input from many organizations, groups and individuals. A prebudget debate and contributions are needed to help establish what Canadians want out of the government and where they want the government to be or their country to be in a few years. However, I am afraid the budget completely missed the boat.
One of the things that we heard constantly when we were going across Canada dealt with the capital tax. If we look at this tax, it is one of the most regressive things. It is almost like a property tax on municipal government.
An old friend of mine from the town where I was mayor came to me and said that when he built his fence 20 years ago, it was considered an improvement and his taxes were increased. Twenty years later it was all dilapidated and needed to be torn down, but when he tore it down he was taxed again for improving his property. I am not sure if that was the case, but that was a scenario that was used. No matter what we do as individuals, we seem to be taxed for it.
This relates to the capital tax. If we are successful in our business and able to make a dollar at the end of the year through our hard work and efforts, and the risks that we take, the government rewards us by taxing us. It takes money away from businesses and enterprises that could be used for reinvestment, expansion, and creating more activity that would require more staff. That is one of the most regressive taxes we have in this country and we need to eliminate it quickly. Money that is in Canada and earned by Canadians should be left in the pockets of Canadians and they will do what is right with it. It will create a whole new economic spin which in turn will create jobs and investment, and move us along the road to building a bigger and better country.
Another thing I would like to point out is the employment insurance overpayment. That is a real problem. The money taken from hardworking Canadians and their employers for the EI fund is far more than is needed. The little bit of cuts we see in this budget and past budgets does not relate to substantive tax cuts that would help the employer and the employee make ends meet. The billions of dollars that are being taken out of the economy through this EI overpayment is counterproductive and something that needed to be addressed in a major way in this budget, and it was not. A tax system is supposed to be put into place to help move a country along in accordance with what its citizens want and to a position where it should be down the road.
I remember the debate regarding the GST. Many members of Parliament across the country who supported the GST bill when it was brought forward lost their jobs. Canadians said they did not want it. It was hinted that it would be used to pay down the debt. It was not. Once it was in place the government at the time and governments after it became attached to it. Now each percentage point of the GST is producing roughly $4.5 billion, far more now than it was when it was introduced.
The government's argument is that it is because the economy is doing so well, but it is a tax on legally everything we do. It is the most hated tax that was ever put forward in Canada. The reason it is hated is because Canadians feel somewhat betrayed that it was sold as a debt reduction tax. I have done some research because people have asked me to find out where it was mentioned in debate that it would be used to pay down the debt. The words were carefully chosen during the debate. No where did it ever say for sure that it would be used for debt reduction. It was indicated or intimated throughout the debate that debt reduction could be one area.
Over the last number of years, due to a lot of pressure from the opposition, the Canadian Alliance and the Reform Party before us, the government has its act together and is balancing the budget. There are no more moneys being accrued to the huge debt that we have. Debt repayment is not a priority of the government and it needs to be because it is still a huge debt around the necks of our children and grandchildren. About 20¢ to 25¢ of every tax dollar goes to service that debt, never mind paying the principal.
The GST is one area that we could really look hard at. If we were ever going to get rid of the most hated tax in this country, we would have to start somewhere. Reducing that tax or having a look at how it is applied is something that we need to do quickly.
The whole issue of using the tax system to share the wealth in Canada has its merits, but Canadians in different provinces and regions of the country need to be assured that the money they give through their tax system is being applied properly. If it is going somewhere where they feel it is a waste, then they have a real problem with providing those tax dollars. One area that is prominent is the gun registry system. It is at $1 billion and climbing. There is no indication from the government how long it will take to finish the job and how much it will cost. We have asked those two questions many times in the House and we have not received any answers.
The budget and the amendments that we are speaking to today must shape the future in order to receive our support. The budget must position Canada on a road to arrive at a place where Canadians want us to be. I do not believe it does that. I do not believe enough time and effort was spent on the priorities. Right now the defence and security of Canada are huge issues and there are not enough resources spent applying moneys to improve that in this budget. That needs to be addressed. All programs must be looked at on a regular basis to see if they are still viable, to see if those tax dollars that are being poured in are being used in the proper manner. If we would continually review those programs to ensure they were doing that, we would come up with a far better system in the end.
In conclusion, we will not be supporting the amendments that are being put forward today.