TAXATION

Ms. Judy Sgro (York West, Lib.): Mr. Speaker, the Canadian Alliance purposes a flat tax which would have exactly the opposite effect of a fair and progressive tax system.

Under this plan, the higher the income, the bigger the tax break. For example, a taxpayer earning $30,000 would receive a tax reduction of about $600, while another taxpayer earning $200,000 would receive a break of over $22,000. That is not fair.

The Liberal government believes tax cuts must benefit all Canadians, but first they must benefit those who need it the most; low and middle income Canadians and families. Our five year plan will reduce personal income taxes by an average of 15%. Combined with cuts in the last three budgets, annual personal income tax reductions total 22% and for families with children, at least 30%. That is a fair and equitable approach to income tax reform.