Mr. Speaker, I am here today to address Bill C-32, an act to amend the Excise Tax Act and the Income Tax Act. I will concentrate on the section of Bill C-32 proposing a reduction in tobacco taxes and outline my reasons for opposing this legislation.
There are some other aspects of this bill which I can support and which some Reformers certainly support, but my colleagues have and will continue to touch on these areas and I will leave it to them.
Late June of this year has been declared tax freedom day by the Fraser Institute. From that day forward Canadians will be working for themselves instead of for government. We can all agree that the tax burden on Canadians is too high and I believe that all Canadians are looking for tax relief. However, I question whether Bill C-32 is the way to lower taxes for Canadians.
As a Reformer I want taxes reduced. I want taxes reduced for all Canadians and not just for a select group which is what the effect will be of this bill. I do not think you could find many other pieces of legislation that propose tax reductions, possibly none, that I as a Reformer would not support. However, Bill C-32, in spite of calling for a reduction in taxes, has hit at the very last place that taxes should be reduced.
I would like to talk about the problems with this legislation and later I will talk about, in the Reform tradition, some possible solutions that are better than this legislation.
This legislation has been introduced in an effort to control the problem of smuggling, not with the intention of easing the tax burden. The government refused to control the smuggling problem, particularly in the areas of eastern Ontario and across the U.S.-Quebec border on native reserves. My colleagues have talked about the lack of action on the part of the government in dealing with smuggling across the U.S.-Canada border in the area of certain reserves.
The criminal element of Canada has been allowed to get away with its crime of smuggling because the government is afraid to intervene in any meaningful way. This is wrong. Lowering tobacco taxes may reduce smuggling from the United States and may reduce the smuggling of cigarettes. Smugglers will just turn their efforts to smuggling other commodities.
I would like the government to think about this. If smugglers are limited by this change in smuggling cigarettes-it will possibly have that effect-then what of smuggling liquor, a similar commodity with a high sin tax? What about smuggling narcotics, guns? What action will the government take next when smuggling liquor becomes a major problem, when liquor is being smuggled across the U.S.-Canada border? What action will the government take?
I ask that question and I would certainly hope that members of the governing party will think about it and will answer it for themselves. If this legislation passes, we will certainly all be having to answer this question and not too far down the road. How are we going to deal with the problem of smuggling alcohol? What of narcotics and guns?
We already know to some extent the attitude that the government has in dealing with guns. It is not a healthy approach. It is not the direct approach that we would all like but I will talk about that briefly later when connecting it to this issue.
This legislation does not in any way solve the smuggling problem nor does it set a precedent to deal with any future problems should they arise. If it does set a precedent, then I am more concerned than I am now. If the precedent the government has set in dealing with future smuggling problems is to lower the tax and do anything but deal with that problem head on, then it is a bad precedent. That is another reason we oppose this legislation. Once again, it is an example of government dodging its responsibility.
Bill C-32 will encourage young people to smoke because it makes tobacco products more affordable to them. This is irrefutable and my colleagues and others have talked about this already. It is very clear that the anti-smoking campaign aimed at young smokers has not worked. It has been ineffective. Now that cigarettes have become more affordable, many young people will be taking up smoking.
I would like to relate an experience to the House. I was around 12 years old when my bother and I obtained cigarettes.
