May 16, 1978 (30th Parliament, 3rd Session)

LIB

Joseph Jacques Jean Chrétien (Minister of Finance)

Liberal

Mr. Chretien:

Mr. Speaker, I shall have to explain again to the hon. member what we are in fact doing in our budget. What we did is that we have reduced the income tax in all provinces in a fair way, which means we have reduced the income tax by $100 in Ontario, in Manitoba, in Saskatchewan, in British Columbia or in the Maritimes; on the other hand, the provincial governments have raised their income tax, and as we levy taxes for both levels of government, we have offered Quebec $85 in the same manner. If Mr. Parizeau wants to increase his income tax or other taxes, he can do so, except that we do not levy taxes for the provincial government; this is why we passed the reduction directly on to the individuals. We did it in such a way that we have vacated a field which the government of Quebec can take over if they wish but they cannot get benefits from both sides, which means they cannot increase their taxes and receive a benefit which the other provinces did not receive. As a matter of fact, the other provinces had to raise their income tax, and Mr. Parizeau can do the same thing. We have simply left one tax field.
May 16, 1978

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
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