FOR THE BENEFIT OF OUR CHILDREN:
IMPROVING TAX FAIRNESS

Nineteenth Report of the
Standing Committee on Finance

Maurizio Bevilacqua, M.P.
Chair

Sub-Committee on Tax Equity for Canadian Families
with Dependent Children

Nick Discepola, M.P.
Chair

June 1999

TABLE OF CONTENTS

PRELIMINARY PAGES

MANDATE

THE TAX AND TRANSFER SYSTEM: NO SYSTEMATIC INTEGRATION

WHY DO FAMILIES PAY DIFFERENT AMOUNTS OF TAX?

THE ROLE OF CHILD BENEFITS

THE CURRENT APPROACH

ELIMINATING THE DISPARITY BETWEEN SINGLE-EARNER AND DUAL-EARNER COUPLES

1. INCOME SPLITTING

2. JOINT FILING

EXTENDING THE MANDATE OF THE COMMITTEE: VALUING CHILD REARING

1. A UNIVERSAL FAMILY ALLOWANCE AND A NON-REFUNDABLE TAX CREDIT

2. REFUNDABLE CREDIT TO PARENTS WHO FOREGO EARNED INCOME

3. PENSIONS FOR CHILD REARING

4. EXPANDED EI BENEFITS

5. SOME OTHER ISSUES

THE CHOICES FACING PARENTS WHO HAVE CHILDREN

SOME PRINCIPLES AND CONSIDERATIONS GUIDING THE COMMITTEE

SUMMARY

APPENDIX A: LIST OF WITNESSES

APPENDIX B: LIST OF SUBMISSIONS

APPENDIX C: A SHORT HISTORY OF CHILD BENEFITS

APPENDIX D: THE MECHANICS OF SELECT PROGRAMS THAT APPLY TO FAMILIES WITH CHILDREN

APPENDIX E: AN INTERNATIONAL COMPARISON OF SOME PROGRAMS DELIVERED TO FAMILIES WITH CHILDREN

DISSENTING OPINION OF THE REFORM

DISSENTING OPINION OF THE BLOC QUÉBÉCOIS

DISSENTING OPINION OF THE NEW DEMOCRACTIC PARTY

DISSENTING OPINION OF THE PROGRESSIVE CONSERVATIVE PARTY

MINUTES OF PROCEEDINGS