Local MP John Nater is disappointed with the result of the recent vote at second reading on Bill C-239. The Fairness in Charitable Gifts Act, a private members bill, was sponsored by MP Ted Falk and seconded by Nater.
“This was an excellent bill that would have supported registered charities across Canada. It was a bill members from all parties should have supported.”
In a June 8 press release, Nater points out federal tax credits given to Canadians for donations to political parties are “significantly more generous” than credits for donations to registered charities. The Conservative MP says the Fairness in Charitable Gifts Act was written to amend the Income Tax Act to increase the value of tax credits for charitable donations making them equal to those of political donations.
“If the Canadian government is willing to give a 75 per cent tax credit for a donation of $400 or less to a political party then it should be willing to provide a similar tax credit for a donation to a registered charity that helps the hungry and homeless, fights a terrible disease or protects the environment” said Nater. “I agree with the member for Provencher that the current tax treatment of charitable donations does not reflect our Canadian values. Feeding politicians should not be more important than feeding the hungry.”
Nater stated, “There are many excellent charitable organizations that work in Perth -Wellington and across Canada. By enhancing their ability to seek donations, the federal government could support the great work they do.”
Bill C-239 was defeated by a vote of 209-103.
During the June 7 debate on the bill François-Philippe Champagne parliamentary secretary to the minister of finance said there were a number of reasons, including a major loss of revenue, the Liberal government could not support the bill.
Champagne pointed out the parliamentary budget officer estimated if Bill C-239 were to pass, it would cost the government about $1.7 billion more in 2016, and $1.9 billion more in 2020. He estimates that the total annual cost of the tax credit for charitable gifts would be as high as $4.2 billion in 2016, which is an increase of nearly 68%.
“I want to point out that even without a tax credit, Canadians are very generous, as we all know. Statistics Canada proved it in its 2015 general social survey. Ninety-one per cent of the time, Canadians give out of compassion, and 88% of the time, they give because of personal belief. Only one-quarter of survey respondents said that they were motivated by the tax credit,” Champagne said.
