Mr. Speaker, I am hoping to expand on the question I posed on October 4 about the way the government seems less than interested in tracking down Canadian funds being held in offshore, tax-free accounts and how its plans to cut 200 positions at the Canada Revenue Agency, key positions that track down money hidden in tax havens, shows this is true.
Successive governments have spent decades turning a blind eye to Canadian tax evaders. They may talk a good game but the proof is in the amount of money recovered and the resources allocated to the battle.
We know that wealthy Canadians and corporations have invested $80 billion in the Cayman Islands, Barbados and Bermuda. While billions are lost, the government tells us there is no money for spending here in Canada.
To put this in perspective, we should consider that direct Canadian investment in these islands is $13 billion more than that invested in the whole United Kingdom. There is a reason for this. The U.K. is not a tax haven. Profits made on that investment are taxable.
There is no doubt that these tax havens represent a reduction in Canadian fiscal capacity. They are a funnel on the Canadian economy and contribute to both the mounting deficit and the unequal burden placed on the average taxpayer.
I think we can all agree that it is not fair nor is it sound economic policy. The question then becomes: what are we to do about it?
We have seen what the government is doing. Again, it is turning a blind eye and losing out on billions of dollars. Instead of committing to getting this money back into Canada, the government has chosen to cut back 200 positions at the Canada Revenue Agency over the next three years. This is being done with the knowledge that every dollar invested in CRA employees, who are dedicated to hunting down offshore accounts, gets Canada $4 back. I am sure if we asked the average taxpayer if he or she wanted the government to cancel the cuts at CRA and chase down these tax cheats, the answer would be a resounding and emphatic yes.
Who would not want to balance the tax burden? I suppose the government's deep-pocketed friends, the ones who benefit from the way things are now. Only those taking advantage of the loopholes will tell the government they are pursuing the appropriate course of action on this issue. Just like with their bizarre census decision, the government is listening to the minority at the expense of everyone else.
New Democrats do have a plan for dealing with tax havens. It is a simple prescription that relies on three proposals that can be summed up as transparency, enforcement and disclosure.
The government is pushing ahead with its plan to slash CRA's ability to deal with tax haven cheats. Instead of reassuring hard-working, law-abiding taxpayers that everyone will pay their fair share, the government is cementing the belief that there are two sets of rules in Canadian tax policy: one for corporations and wealthy individuals and one for everyone else. It is not fair.
I ask again: How can the government justify cutting jobs in the unit responsible for recovering money from those guilty of tax evasion?
I commend the House for taking the time to hear me out. We have to take some action with regard to tax havens.