OFFICIAL OPPOSITION DISSENTING OPINION
ON FAMILY TAXATION

The Official Opposition supports some of the recommendations contained in the report of the sub-committee on family taxation. However, given the limited scope the government placed on the mandate of the Committee, we are disappointed that its recommendations do not go far enough.

The Official Opposition recognizes the value of parenting and would like to ensure that the policies and programs of the federal government treat Canadian families fairly. We must give parents, single or dual income, greater freedom to spend time parenting, and to succeed economically while doing so. There is no doubt that single-income families and families where one parent leaves the workforce to provide child care are penalized by the tax system for doing so.

Building on recommendations made by witnesses, the Official Opposition advocates extending the Child Care Expense Deduction (CCED) to all parents, including those who care for their children at home. To make this program as fair as possible, the CCED would be converted into a refundable tax credit available to all families and income levels. Our proposal would also give families the choice to choose the best child care option that suits them.

Therefore, the Official Opposition proposes a refundable tax credit equal to 17% of the current $7000 CCED for children under 7 and 17% of $4000 CCED to be made available for parents of children between the ages of 7 to 12 years of age. It is important to note that the current system allows for the CCED for children right up to 16 years of age.

Specifically, parents would receive $1190 for every child up to age 7 and $680 for every child 7-12 years of age.

The Official Opposition further proposes that the Spousal Amount be increased from the current $5918 to $7900, levelling the field for parents who choose to stay at home to look after young children, and helping families meet the needs of a more demanding economy.

Heeding Canadians' plea for lower taxes, the Official Opposition would implement across the board, broad-based tax relief that would leave two-income families significantly better off.

These measures are a start to addressing the unfairness in the tax code with respect to its treatment of Canadian families. We urge the government to take a serious look at these proposals to remedy the disparities to families that exists in our public policy.