One has to enjoy this position, Madam Speaker, because one hears a lot of ideas, some of which are more commendable than others and in terms of the idea itself, this is not a terrible idea. However, when we begin to unpack it, as I hope to show over the next few minutes, it does not stand the sniff test.
The bill is intended to extend a tuition tax credit and an education tax credit eligibility requirement to include courses of education given by a qualified music teacher. Under the bill instruction provided outside, and this is a critical point, the formal education system by a qualified music teacher would become eligible for the tuition tax credit and education tax credit. The bill also proposes that the Minister of Human Resources and Skills Development be given authority to certify music teachers for the purposes of these two tax credits.
The intent of the bill is commendable. Hopefully, it would in fact encourage participation by Canadian students in music and I would not argue with any of the benefits that the hon. member outlined in terms of music lessons and playing music. However, the Government of Canada and in fact all governments have a long standing resistance to extending tax credits and deductions, and things such as that to what are essentially personal enrichment exercises. As I said in my question, if it is not music then it must be dance and if it is not dance then it must be some other cultural activity, whether it is art or something of that nature. If it is not a cultural activity, then why could it not be a sport activity?
Any of us who are parents are spending considerable sums of money on the enrichment of our own children, however, we do not spend that money with the anticipation that somehow or another the government should share in that enrichment exercise.
Since 2001 almost $740 million has been provided in all aspects of the creative process by encouraging excellence among Canada's artists, promoting arts and culture among the population as a whole. In budget 2005 we put in new funding in the amount of $860 million which is to take that initiative from 2005 to 2010.
I would like to discuss the tax measures that the bill proposes to amend. Tuition and education tax credits are the principle measures through which the federal income tax system recognizes the cost of post-secondary education and occupational training. As we will see, the tax assistance is quite generous. In 2005 alone, it is estimated the education related tax measures will reduce taxes paid by students and supporting persons by approximately $1.5 billion which represents 45% of direct federal assistance to individuals for post-secondary education and occupational training.
These tax measures include: a tax credit for tuition fees in excess of $100, an education credit based on an amount of $400 for each month of full time attendance or $120 for each month of part time attendance, provided in recognition of non-tuition costs of post-secondary education or occupational training, for example, the cost of textbooks, supplies or tutoring.
When a student has insufficient income to take full advantage of the education and tuition tax credits, unused amounts can be transferred up to a maximum of $5,000 per individual. Students can carry this forward indefinitely. The first $3,000 of bursary and scholarship income received by students is tax exempt. Graduating students can benefit from a tax credit or interest paid on Canada student loans comparable to provincial government student loans programs.
Within this extensive tax support, the tax credits recognize that students pursuing post-secondary education or occupational training invest in their education to increase their future earnings. These two tax credits are available to all students enrolled in post-secondary education including music students, provided those courses are taken at a university, a college or CGEP, or any other post-secondary institution, or an educational institution providing non-university courses that furnish or improve that person's occupational skills, provided the institution is certified by the minister.
I must stress that as long as a music student is within the educational system as such, be it a university, college or a CEGEP, or as long as that student is taking these courses and expending these moneys for the purposes of improving an occupational skill, the government is there to support them. However, if the student is taking a course that is outside of those parameters and it is simply for personal enrichment, then the government does not support activities that are personally enriching. Otherwise, as I said, there would be no end to the requests on the part of taxpayers to support their particular personal enrichment.
Well over 4,500 of these institutions across the country have received certification. These privately run institutions offer training in areas that include informatics, business and management skills, piloting, and of course, music lessons.
We can see that the Income Tax Act already includes provisions to ensure that students who take music courses at a recognized institution outside of a university or college, with the hope of pursuing a career in music, can claim tuition and education tax credits.
The Income Tax Act already includes provisions that ensure that schools that provide music lessons outside the formal post-secondary education system can in fact issue tax receipts for the tuition credit, provided these courses or lessons are aimed again at improving occupational skills. These schools again must be certified by the minister.
I hope members will agree that the post-secondary music courses and training are already more than adequately recognized under the Income Tax Act, both from the viewpoint of the student and from the viewpoint of music schools and music teachers that operate outside the formal education system.
If the intent of Bill C-271 is to ensure that post-secondary music training is recognized for tax purposes, then the proposed amendments are superfluous and should be rejected by the House. However, if the intent behind Bill C-271 is to extend tax recognition to all music courses taken by all Canadians, then the bill raises some very serious fairness issues.
Indeed, it is a matter of principle that the Canadian income tax system should not recognize discretionary personal expenses.
As previously stated, the tuition and education tax credits have a specific purpose, namely, to recognize costs incurred by students in post-secondary education or occupational training. Extending those two credits to all music students, regardless of why they take their lessons, would significantly change the nature of those two credits from recognizing education related expenses to recognizing expenses related to music courses taken for personal enjoyment or personal development of the individual.
There is no doubt about the value of taking lessons in music, dance, art or whatever. That is not the argument here. There is no rationale from a tax policy perspective to provide a tax credit to Canadians in recognition of the costs of music lessons if they are only for the purpose of personal enjoyment.
I hope that over the previous few minutes I have made the distinction that if a student is there to improve his or her occupational qualifications, the government is with the student. If a student is there to pursue post-secondary education, the government is with the student. However, if the person is there merely to enrich his or her own personal development, then frankly that should be done at the person's own expense.
There is also no reason to provide tax relief for music students and not for other individual personal development. As I have said, we could outline all the other areas of personal development that Canadians may wish to pursue, but not necessarily claim tax credits, including such things as dance lessons, sporting activities and memberships in any number of local clubs and the like.
I hope I have persuaded members over the course of these last few minutes that this bill should fail for the reasons outlined above. The government is there to support people who are pursuing occupational qualifications or post-secondary qualifications. However, the area of personal development is not one which the government or the taxpayer for that matter should be asked to support.