November 14, 2005
Response to Motion 28 - Inheritance Tax

I rise this morning to support Motion 28, put forward by the Honourable member for Prince George–Omineca.

[Be it resolved that this House respects seniors and their families who, over their lifetime, have worked to impart the fruits of their labour to the next generation so that they may continue their family's legacy; and in support of that, this House opposes an inheritance tax on British Columbians.]

Madam Speaker, as you may know, Burnaby North, the riding that I represent, is a riding situated between Burnaby Mountain and Boundary Road, just east of Vancouver. It's north of Canada Way and south of the Burrard Inlet. The 2001 census indicated that 45 percent of the residents in this riding are immigrants. We also have many residents who have lived in this riding for many generations. It shows that we are very dynamic and multicultural. We have students, workers, professionals, business owners and retired seniors.

As in other parts of British Columbia, most have worked very hard to make a living. Some are renters who pay their rents from paycheque to paycheque, but a large number of my constituents are homeowners, who are paying for mortgages or have clear titles to their houses. In fact, many British Columbians have also contributed to their pensions and registered retirement savings plans. In other words, many British Columbians have worked hard to save for their retirement and have built up substantial family assets. They have paid their fair share of their taxes along the way.

The question of an inheritance tax came up during the last federal election in May 2004. At that time the federal NDP leader was proposing to introduce a tax on inheritance over $1 million, which would begin at 18 percent and rise to 48 percent for an inheritance worth $5 million. This proposal raised a lot of concerns for British Columbians, because many of our residents are homeowners and have substantial RSP or pension rights as well.

Many of our seniors would leave an estate of a value over $1 million to their children. They are now worried that when they die, the government will take away up to half of their savings under the NDP proposal.

Madam Speaker, we are not engaged in irrelevant debate in this House this morning. A federal election is again looming on the horizon. Many of my constituents are worried again.

They are not only worried about this inheritance tax that would be implemented at the federal level. They are also worried about the position of some of the provincial NDP members, as some of the members sitting on the other side of the House today also ran in the last federal election and presumably also endorsed the federal NDP policy.

I would like to remind the House that the former member for Vancouver-Hastings said on June 2, 2004, in the TV program Voice of B.C.: "The inheritance tax, along with some shifts rolling back some of the tax decreases for corporations, is saying that in order to support health and education, we are going to move to a much more progressive tax system. The inheritance tax is part of that." The current Leader of the Opposition said on May 31, 2004: "We're the only country in the western world that doesn't have an inheritance tax. I think the people of Canada will support that tax."

Madam Speaker, I believe this motion is very timely. It's time to assure all British Columbians that the inheritance tax has no place in British Columbia. The members of the opposition now have a chance to come clean on their positions. I'm pleased that this government has worked very hard to reduce income tax and corporate tax. Now British Columbians earning less than $85,000 are paying the lowest income tax in the country, and our tax measures have generated an excellent environment for job creation and business development.

An inheritance tax would be counterproductive. It would discourage investment from coming to British Columbia, and it may also make our seniors think of moving their assets out of this province. I do hope this House will pass this motion to send a clear message to all British Columbians, especially to our seniors, that the government should not impose an inheritance tax on them, that we encourage British Columbians to work hard to build up their family estates and that the fruits of their labour should not be cut away by the government.