REAL WOMEN OF CANADA is deeply concerned that many women, who would prefer to remain in the home as full-time mothers, are unable to do so, owing to financial pressure.  Further, those women who do remain in the home are lift in a situation which is clearly unfair and inadequate.

     For those women who remain out of the paid work-force, there is no personal Canadian Pension Plan (CPP) or  Quebec  Pension Plan (QPP) at age sixty-five; there is no pension right in the event of becoming severely disabled; and there is a complex set of rules governing survivor benefits, which, depending on age, subsequent marital status, and the presence or absence of children, would reduce or eliminate benefit entitlement.

     In order for women to have a real choice as to whether they become full-time mothers, they must receive adequate income so as to enable them to exist without severe financial pressures and also with some personal financial security.  The vast majority of married couples where the wife is a full-time homemaker, live at a significantly lower income level than families where the woman is in paid employment.  In fact, there are 3.5 million women in Canada today who are full-time homemakers.  Many women choose to place the well-being of their families ahead of their own careers.

     We realize, however, that there is only a limited amount of money available.  Thus, we would recommend that there be a reallocation of funds already available rather than increase the tax burden on the public as follows:

1.  The Income Tax Act should be amended to provide full-time homemakerís tax credit for families according to income.

2.  Child Tax Credits to be paid equally to parents, whether the child is cared for in the home or is in substitute care.  Payments should be made directly to the parents so that they can determine the kind of care according to the child's needs and the family's values.

3.  Increased tax exemptions for dependent family members.

4.  Choice of separate spousal tax returns or a joint spousal tax return, with a lower tax rate for single income families who now pay more tax than two income families.

5. Child-rearing Drop-out Provisions to be extended:

     REAL WOMEN OF CANADA is pleased that the Child-rearing Drop-out Provisionî in the CPP has received full approval from all the federal and provincial governments.  We believe, however, that the drop-out provision, which applies only to raising of children under seven years of age, is too low.  Older children especially teenagers, often have a need for a full-time mother, and we recommend that the drop-out period should be extended to cover the period of time until a child attains sixteen years of age.

6. Equality in Survival Benefits in Pension Plans:

     It is the view of REA. WOMEN OF CANADA that a pension plan is income earned by the employee and deferred until retirement.  Since both spouses share in the sacrifices made to accumulate pension assets during working years, then both spouses should benefit equally from these assets.  We believe, therefore, that the benefit paid to the survivor, whoever it is, should be equal to the full pension.  In other words, if the working spouse dies, his/her pension should continue in the full amount to the surviving spouse.  This is important even for women who are employed outside the home, as women are often in jobs where they are less likely to be offered pension plan coverage.  Further, women who are covered by pension plans are more likely to lose any financial benefits they may have accumulated because they change employers more frequently than men.

7.  Pension Benefits to continue after marriage breakdown:

     We take the position that employer-sponsored plans, pension credits and pensions-in-pay accumulated during the marriage, be split upon marriage dissolution of after a legal separation.  the approximate portion of the credit could be determined either by court order, a divorce agreement or a separate agreement.  The spouse could have the option of taking a deferred pension, if acceptable with the employer.  This would allow recognition of the principle that spouses are partners in the family unit.

8. Financial recognition for caring for elderly parents or other family members in the home:

      Concern for the family does not begin or end with the child.  It also includes those adult children who care for elderly parents or disabled family members.  It is often preferable for these people to be cared for in the home.  Certainly, this eases the financial burdens on society in providing expensive outside care.  If dependent family members are to be provided for in the home by responsible family members, the latterís contribution to society should be recognized.  This can be done by providing the caretakers with either tax credits or a tax deduction.  Frequently, the family suffers financial loss when caring for such a dependent person, as one of the family members is often required to remain in the home as caretaker for the dependent person.  Often the family unit is deprived of the caretakerís salary on a part-time or full-time basis.  Possible lost income and additional expenses incurred in caring for such persons should be acknowledged, with the family receiving tax credits or deductions to compensate for the extra expenses involved