Mr. Speaker, I appreciate the opportunity to talk about this topic, as it is a very crucial topic for a lot of people in my riding. I say “crucial” not because they are looking forward to income splitting, but because most of them, if not all of them, would not gain a single cent out of this income-splitting proposal that the Conservatives are suggesting is a great thing for the average Canadian.
The average family income in my riding is $30,000 less per year than the average for the rest of the country. Almost all of the people in my riding have incomes under the cut-off point at which income splitting would provide a benefit to them. We would have a situation in which those most in need, and I include my riding in that category, would have significantly fewer government services, because the Conservative government has been cutting back on services. They would have no additional income as they watch the cost of living and the cost of everyday items continuing to rise.
For those individuals in my riding, those rising costs mean that they will continue to fall further and further behind. Some will fall into poverty. Some are already in poverty. They will certainly fall further and further behind, while some in the rest of the country, a very small portion, will actually do much better.
We now have a situation in Canada in which the rich are getting richer fast. The various governments of the past 25 years have managed to create systems that are unfriendly to organized labour. Organized labour is one of the ways people improve their standard of living, but if the bosses who are making most of the money have governments that are unfriendly to organized labour, they do better, and the bosses are doing much, much better.
The top 1% of earners of this country paid a proportion of our taxes, and that proportion is shrinking. Since the Conservatives took over in 2006, the proportion of net taxes paid by Canadians to the federal government by the top 1% has shrunk relative to the rest. That means everybody else is paying more than the top 1%.
This proposal by the government will make that situation worse, because those at the very top stand to gain by this income-splitting proposal, while those in the middle and at the bottom would gain little, if anything. As a result, the division between the rich and the poor in this country would get worse.
In the city of Toronto, where I reside and where my riding is, a series of studies have been done by Professor Hulchanski on the city of Toronto. This professor has discovered that there has been a hollowing out of large sections of Toronto as a result of the abandonment of the manufacturing industry, something about which the current government has done little, if anything.
With the abandoning of the manufacturing industry and the replacement of those jobs by retail and other service sector industries, the average income for the middle class in Toronto has shrunk dramatically, while the income of those who are doing well has grown. We have a hollowing out in the inner suburbs of the city of Toronto. About 30 or 35 years ago, these people were considered comfortable middle class. Now those people are on the edge of poverty, on the edge of homelessness, on the edge of not doing well at all.
The proposal by the Conservative government does nothing to change this situation. It does nothing to affect the thousands upon thousands of Canadians who are near the bottom of the food chain or the thousands upon thousands of people in my riding who are recent immigrants to this country.
One of the reasons there are a lot of recent immigrants in my riding is that the housing is relatively cheap compared to the rest of Toronto. My riding ends up populated with individuals who are barely scraping by. As a result of this proposal by the Conservative government, those individuals will gain absolutely nothing. Anybody making less than $44,000 a year will see no benefit, and the large majority of people in my riding make less than $44,000 a year.
The average income in my riding for families, which is the net income of everybody in the household, is something approaching $77,000. That includes those who are doing well, and there are some in the riding. For those who are doing poorly the average is $77,000. The average in Canada is a little over $100,000. We can see that we are already only at two-thirds of the income of the rest of Canada. To suggest a largesse of the current government to redistribute wealth by creating a system of income splitting would simply make the problem worse. It would simply create an untenable situation in which the wealthy in this country would get wealthier.
Perhaps it is a vote-getter for the base of the members opposite. Perhaps that is what is going on here. It is certainly not good policy, but if they believe that the rich should get richer and the poor should get poorer, and if that is who they are catering to when they are trying to get re-elected, unfortunately there are not enough of those people remaining in the city of Toronto to get them re-elected. I do not think the Conservatives are going to do very well in the next election. The people of Toronto understand full well that this proposal does not do anything for 86% of Canadian families. As for the 94%, the increase in income inequality, that is what the theory behind income splitting is. It is to redistribute wealth and maybe make income inequality less of a problem, but the effect of this is to continue the income inequality because those at the bottom will continue to be at the bottom. There is no benefit.
We would take $3 billion out of the federal treasury and $1.9 billion out of provincial treasuries and give that money to those people who are already well off. Maybe that would get them a few votes, and maybe that is the key demographic they are looking for, but it would not get the votes of the majority of the people in the city of Toronto, the majority of the people in my riding, and the majority of the people in Canada, 86% of whom will see little or no benefit to this very strange proposal.
Maybe there is an anti-feminist side to what is being proposed here because there are some members in the Conservative Party who believe that women should not be working, who believe that income splitting is the way to ensure that women do not enter the workforce. Already women only make 70% of what men make and as a result of income splitting, their incomes would be the drag on the family so it would be more likely that they would not enter the workforce. Those women, who tend to be the second earners in many families in Canada, would see that their contribution would be less, as a result of income splitting.
We have situations where the government's proposal to income split would disadvantage the poorest, advantage the richest, and disadvantage the women in this country. Those are three philosophies that this party does not accept. We believe that if we are going to redistribute the wealth in this country, we should look after the poorest in this country first. We should look after seniors. We should look after women who make less than men. We should look after the middle-class people who have seen their earnings go off to the bosses and to the 1% of this country. We should look after the people who really need it first in this country.
The notion that we can take almost $5 billion in wealth and give it to the rich in this country is something that we are so opposed to. We are theoretically and philosophically opposed to taking money from everybody, because that is who pays taxes in this country, and giving the lion's share of it to those who make the most. It does not make sense. It is not something we should do. We will be opposed to that policy should it ever come forward.