moved for leave to introduce Bill C-324, an act to amend the Income Tax Act (entertainment expenses).
Mr. Speaker, the bill I am introducing today is aimed toward lowering our national deficit to some degree by amending the Income Tax Act. It will do so by eliminating the part of the act which includes entertainment as a tax deductible expense.
Tax loopholes cost the public treasury an estimated $36 billion a year. As it stands, the Income Tax Act includes provisions that allow business people to write off meals or corporate boxes in sport stadiums as entertainment expenses.
When the Liberal government lowered meal and entertainment expenses to 50 per cent from 80 per cent deductible there were cries from the restaurant industry that business would drop drastically, affecting its many employees. There is hardly a mark on that sector. I believe that this bill will have a similar outcome on stadium owners.
The net result, however, will be considerable revenue, a positive outcome for the government and a feeling of equity for the vast majority of Canadians who are not able to take advantage of these corporate perks and should not have to foot the bill for them.
(Motions deemed adopted, bill read the first time and printed.)