Mr. Speaker, I am pleased to rise following the parliamentary secretary who just gave us a little speech on the historic tax reductions. What he did not mention was the historic tax additions that the Liberals added on over the last 10 years which have put us in this mess where we find ourselves the most highly taxed country in the world. The historic tax reductions are much less than the additions. That goes for the employment insurance premiums too that we have paid over the years, which are exorbitant and unjustified.
However I am certainly pleased to rise today to speak on Motion No. 293 which speaks to tax benefits for the working artists in Canada. It is a very worthwhile motion and actually was first brought before the House in similar form in the year 2000. It is a testament to the noteworthy underlying principle of the motion on which the House once more has had an opportunity to reflect.
As an Atlantic Canadian from Nova Scotia, one of the most culturally diverse regions of the country, we value a tradition of excellence in the arts. In fact there are economic opportunities for all Canadians in recognizing and harnessing the power of arts and culture. These types of success stories are worthy of recognition, however we have to do a lot more to help artists when they are starting off.
The motion is very admirable from the perspective of the hon. member's desire to help but there are some difficulties in the concept and in the eventual implementation. I would like to point out a couple of those difficulties that we find with the motion.
I am not sure how to get around this, but the motion is ambiguous in terms of describing who qualifies and how the term “artist” fits a specific individual, whether that can be defined and the definition defended effectively and categorized as to exactly who is or is not an artist and who qualifies. Where would the government draw the line as to who is an artist? Would it just be the painters, sculptors and musicians? What about the people who claim that their work is art, yet no one sees it that way but themselves? Who makes that decision and how could one make that decision?
One must ask why struggling artists should benefit more than other struggling members of society. Why not give an income tax break to mechanics like Ted Embrie who helps keep the old car of the struggling artist on the road well beyond its normal life, in order that the struggling artist can attend an art exhibit to sell his or her paintings several hundred kilometres away? Ted is an artist too. He not only has the training but he has an inherent ability that is natural to him to make these repairs. In my view, that is an art.
What about the struggling plumber who helps the struggling mechanic? What about a journalist like Darrel Cole compared to an author who would consider himself an artist, who basically writes for a living while the journalist does the same thing? What about a sign painter like Bus Dobson? He truly is an artist. Although he paints signs, he is every bit an artist and has incredible talent.
Again, I would like to reiterate my position that this motion recognizes a problem which should be recognized and dealt with. Also, it is noted that artists are on a financial roller coaster. An artist may go for several years without payment and then receive a lump sum payment, recognizing the contributions he has made over a period of time. However many other trades and professions have the same problem and I have been in some of those.
The average income of an artist in Canada currently is estimated at about $13,000. The issue raised by the hon. member can be addressed in a more broad based way by significantly raising the basic personal exemption for all Canadians and thereby eliminating the problems of designating who qualifies and who does not.
The Progressive Conservative task force, which reported in January 2000, recommended an increase in the basic personal exemption to $12,000. This would help significantly, considering that the average income of an artist is $13,000. That being the case, we should move, over a period of time, to raise the basic personal exemption even higher. In future days ahead, it will not be unheard of to call for the raising of personal exemptions.
The hon. member recognizes that tax relief can play a very important role in helping artists pursue their chosen fields in culture and art, thereby keeping them in Canada. That is important because it indicates that she recognizes the importance of lowering taxes for all Canadians to ensure that Canadians, regardless of their careers or life pursuits, can choose to stay and prosper here in Canada. Whether it is in dot com, e-commerce, biotech or traditional industries, Canadians can have and should have a bright future right here.
The hon. member clearly demonstrated that she recognized the important role that tax policy plays in encouraging or discouraging pursuits of particular activities. In that vein, she would agree with me that we should continue to be vigilant in ensuring that the tax burdens of all Canadians should not be excessive when compared to those of other countries in comparative trades, professions or the arts.
Whether Canadians wish to pursue careers in the arts, the new economy or the traditional economy, we want them to be free to do so right here. I am sure she would share with me the need to reduce taxes for all Canadians based on her basic premise that decreasing taxes would help encourage people, in this case artists, to pursue and maintain a certain level of activity.
The issue of capital gains also needs to be addressed. We currently tax donations of publicly traded or listed securities to charitable foundations or institutions. Whether it is a hospital, a university, an endowment fund or a cultural activity, we tax the capital gains made through such donations. Inclusion taxes are taxed for donations of publicly traded or listed securities. In the U.S. there is absolutely no capital tax on contributions of listed securities.
Over the years that has led to a significant disadvantage for Canadian universities, hospitals and the arts community. It has created a distinctive disincentive for high net worth Canadians to contribute listed shares of publicly traded companies to the cultural and health foundations in universities.
The Progressive Conservatives, in numerous prebudget, budget and various committee reports, have always recommended the elimination of the capital gains tax on gifts of listed securities. That would go a long way to encourage high net worth individuals and those of relatively modest means who may have done very well in equity investing in recent years to help foster a greater environment for cultural activities in Canada. That is another way that the hon. member's concerns could be addressed.
While I may disagree with the particular vehicle chosen by the hon. member to help create a better environment for cultural and artistic diversity, I can assure her that the Progressive Conservative Party remains committed to work with other parties in the House towards this goal. We must seek better ways to support and encourage the arts, and all the types of creative endeavours whether they be graphic arts, the dot com universe, painting, dancing or even playwriting.
One of the things that defines us as Canadians is our unique cultural vibrancy from coast to coast, and with proper support and encouragement we can ensure that our cultural vibrancy and diversity, as expressed through the many forms of artistic creations that adorn Canada today, will remain solidly entrenched through the years to come.