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REAL WOMEN MAKES PRESENTATION TO THE SUBCOMMITTEE ON FINANCE

Every fall the House of Commons Standing Sub-committee on Finance holds pre-budget hearings to give organizations and individuals the opportunity to express their concerns, with the view that they may affect the preparation of the federal budget. However, these hearings are a public charade, as the government goes ahead with its own budget, unconcerned by any input from these public hearings.

REAL Women wondered, therefore, if it was worth the time and effort to prepare a brief to appear before this Parliamentary Committee - especially so, since antagonism is often shown to REAL Women of Canada by this biased parliamentary committee. However, we know it is crucial for us to continue to be a voice for reason and fairness on behalf of Canadian families. We have never and we will never cave in to intimidation. Thus, we decided to speak out for family friendly legislation and social policies at this Committee hearing.

We appeared therefore, before the Finance Committee when it held its session in Saskatoon on October 12, 2005. Cecilia Forsyth, REAL Women's Western Vice-President, made the presentation to the Committee on REAL Women's behalf.

There were a total of five different groups, including REAL Women, making presentations at this hearing. Each person had seven minutes to present recommendations to the Committee. The Committee in Saskatoon consisted of two Liberal MPs, two Conservatives, one Bloc and one NDP. Following the presentations, each Member of Parliament questioned or commented on the briefs.

Whether it was by chance or by design (probably the latter!), the Liberals, Bloc and NDP completely ignored REAL Women's presentation. They simply did not want to hear views that are opposed to their policies. Although these parties claim they are tolerant - believe us, they are only tolerant of those groups that support their policies! One Conservative MP did comment, however, on our recommendations to end tax discrimination against the single-income family and to provide a child care tax credit to all families saying "we would one day prevail". This was likely a reference to the policies of the Conservative Party on these two issues which are similar to those of REAL Women.

Summary of REAL Women's Brief

Since our inception in 1983, REAL Women of Canada has constantly stated that government policies should remain neutral on the issue of career choice for women including the option of remaining at home as full-time homemakers. Our brief called on government to implement the following recommendations in order to achieve a balanced and equitable tax system:

1. End Tax Discrimination Against the Single-Income Family

In 2003 an average single-income family earning $80,000 paid $2,743 more in federal income tax than a double-income family with the same household income. Revenue Canada allows double-income families tax breaks and deductions that are not available to single-income families. This Inequity between single and dual income families can be eliminated by allowing the single income family to split the family income to file separate income tax returns or by allowing joint tax filing.

The government already recognizes the family unit when paying out benefits, such as the GST credit, the Canada Pension Plan (CPP), and Old Age Security. It is not a new concept. Recognizing the family unit rather than the individual for tax purposes is the fairest way to achieve equality for families


2. Convert CCED into a Refundable Child Tax Credit for All Children

The Child Care Expense Deduction program ($7,000 per year for children under 7 and $4,000 for children 7-16 years of age) is only available to parents with children in commercial substitute day care. It is based on the false assumption that parent-based child care has no expenses. All forms of child care have associated expenses. Child care costs exist because children exist, not because both parents work outside the home.

A refundable child tax credit, available to all families, would recognize and equally compensate the contributions of all parents, whatever child care method they choose. Public policy should equally assist and not discriminate against parents if they choose to care for their own children in the home environment. All children are of equal value, and their care should be so treated in law.

3. Make the Spousal Deduction Equal to an Increased Personal Exemption

The spousal exemption discriminates against the full-time homemaker as it is less than the basic personal exemption (BPE), which is one of the lowest in the industrialized world. In the interests of tax fairness, the spousal deduction should be equal to the basic personal exemption, and both should be substantially increased to reflect today's cost of living.

4. Provide Tax Relief for all Families

Taxes are the largest expenditure in the family budget. Excessive government surpluses in recent years clearly indicate over-taxation. Government must stop exploiting families by taxing them so heavily that they have little discretionary income, thereby forcing both parents into the paid workforce

A comprehensive tax-relief plan would benefit all Canadians. It would assist families to meet their financial needs, reduce child poverty, and stimulate the economy. Leaving earned income in the hands of the taxpayer is genuine government investment in the economy of the nation.

5. Government Funding of Day Care Must Go Directly
To Parents Not To Commercial Day Care Facilities

The Liberal government's National Child Care Plan for universal, publicly funded child care (now called early childhood education and development) does not meet the needs of Canadian families. It denies parents a choice of child care alternatives by restricting government subsidies to regulated day care facilities to the detriment of every other type of child care arrangement. Furthermore, this one-size-fits-all scheme will inevitably increase taxation, which will result in more and more women having to enter the paid workforce for the family to survive financially.

It is essential that child care legislation support a flexible system so that child care can fit the different needs of Canadian families. Parents should decide whether the child should be cared for at home by a parent or other family member, in private day care, in community, religious, or ethnic-based care, or in a government operated child care centre. A decision about child care is a decision for the parents; it is not a decision for government.

A government operated child care facility is one of many child care choices available to parents. It should not be the only option of a national child care plan. Other options must be made available to parents by paying child care funds directly to parents to allow them to choose the type of child care most suitable to their family's needs. Equal child tax credits should be paid to parents, regardless of which type of care they choose, whether home care or substitute care.

6. End Funding of Special Interest Groups

Each year the federal government gives grants and contributions estimated at $11 billion annually to numerous special interest groups, including businesses, labour unions, sport and lobby groups, such as day care advocacy groups, and radical feminist organizations.

For example, the federal Status of Women agency gave away $10,840,000.00 in grants to feminists groups in 2004 - 2005. Altogether 161 feminist groups received government funding that fiscal year.

Government funding of feminist women's groups is unacceptable and must stop. Women are not all the same. We are individuals, extremely different in our needs and interests. No single group or ideology can represent the views of all Canadian women.

The federal government should end all special interest funding in order to provide a level playing field for all groups, to avoid government initiated discrimination, and to decrease unnecessary government spending.

Conclusion

The future of our country depends on the strength of our families. The family, which is the foundation of a nation, should be central to the formation of all public policy. Government decisions, especially tax and social policy, must be fair and equally beneficial to all Canadians.
REAL Women will continue to make this point time and time again, whether the MPs want to hear it or not!

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