Queen’s Park Report Noel Duignan MPP Halton North ime last year I talked about the establishment of the Fair Tax Commission and the various work- ing groups Studying different taxa- tion issues. This spring you heard about the tecommendations of the Environment and Taxation Working Group. Another of the working groups — this one dealing with Low Income Tax Relief — has also finished its report. The seventeen members who donated their time and expertise were working on the question of “What changes to, or restructuring Of, existing tax-delivered assistance would increase the fairness of the overall tax burden on low-income individuals and families?” The report indicates that Poverty in Ontario is not the result of any one cause. People are poor, not only because they have to pay taxes, but also because they have limited access to the job market and often must rely on cash transfer Programs like unemployment insur- ance and social assistance. The working group also conclud- ed that the overall tax system is not very progressive, particularly above the $40,000 income level. This means that, on average, when income rises, the Proportion of income paid in total taxes (tax burden) does not always increase significantly. The report recommends changes to Ontario’s tax-delivered assis- tance programs to alleviate the tax purchasing power of people with incomes below the Poverty line, by Providing for full indexation of income tax brackets, tax credit amounts and income thresholds for tax credit calculations, - The personal income tax system (federal and provincial) should be based on family unit whenever it teduces its normal rates in the inter- ests of recognizing reduced ability to pay. This will eliminate the unfair Practice of awarding benefits to individuals and families with ade- quate incomes. - A move from a tax deduction to a tax credit approach for child care expenses would provide greater fairness for those low income peo- ple with receipts for child care since tax credits reduce the amount ~law tings from ll of us at "The Denture Clinic” Kelly, Michael, Carolyn, Val and Alex Trenton, Denture Therapist of tax owing by the same amount at 18 Church Street, Georgetown, Ont. 2 \ all income levels. 877-2359 ZZ nN ee & The group suggests that the fed- mos bors rele eda accessibl g b eral government convert the child care deduction to a non-refundable tax credit. Give The Best To The Best . Q From The Best Give Panasonic : es ee tv Technics 70 your FAMILY FROM G/S TELEVISION burden on low-i Ontarians, but does not confine its recommen- dations to areas that are specifically under provincial jurisdiction. It also indicates changes that Tequire either federal-provincial collaboration or unilateral federal moves. Here are some of the key recom- mendations: ~ The point where federal income tax becomes payable is far below the poverty line. The group recommends that fam- ilies and individuals with inade- quate incomes should not Pay any Personal income taxes. Statistics Canada’s after-tax low income cut- off (LICO) should be used by both the federal and Ontario govern- ments as the measurement. - Sales taxes and Property taxes force people in low-income situa- tions to spend a greater portion of their income on necessities. The group recommends that both the Ontario Sales Tax Credit and federal Goods and Services Tax Credit be increased and fully pro- tected by inflation. ~ The federal and Ontario govern- ments should provide protection from the effects of inflation on the STEREO SYSTEMS 4 Technics ee ‘ pee & Sow” . 5 Disc CD 4 SCS 1300 (Shown) . *220W +5 Disc CD & Scs 2300 F — (Not Shown) s ecco . SC-$1300 Suvavevevesszsesegezay 4 euusaeeserezserereeresasey PC-29SF80A . cAlQeone ene a CD CHANGER + MTS-Storeo/SAP Reception rae ™ SLPD 627 sBieemsiaer Sa ti th i as 3 “Pram Vio Oa 4 Technics SAGX 130 2700 Lineatnconees ar) * AV Receiver *°70 w/Ch ‘* Dome Ill Sound System ¢ Remote *2-ANV Inputs: s wuuseuzzerezzezzsegeyy suuuureuyezeaaeezzeezergey PV-2201-K ole Ie oe ae ee Panasonic Fv-4250-K ea cies" 4 PUK SAGX 330 Be Melton ta "+ Low Light 1 LUX * Pro Logic Surround . eae * 100 w/Ch =< + Bonus Canying Case NE ee DECEMBER HOURS: = = = Mon. - Fri YEARS 0 p Orgeto 10-9p.m oe IN easy Saturda GINNY'S GEORGETOWN NS be e A : yred DIAPER SERVICE (‘ ) AV Sunday 877-0950 R : 12-5p.m. ‘+ Pick-up and delivery twice per week -— Tachni, (Have your own diapers? We'll do those too! Dn SaaS Zee Paadgn SONY. Jvc f°