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Member of Parliament

Dan Mazier

  • Member of Parliament
  • Member of Parliament
  • Conservative
  • Dauphin—Swan River—Neepawa
  • Manitoba
  • Voting Attendance: 67%
  • Expenses Last Quarter: $138,707.52

  • Government Page
Context: House Hansard - 80 - Jun/2/22
Mr. Dan Mazier (Dauphin—Swan River—Neepawa, CPC)
Mr. Speaker, I am pleased to rise today to speak to Bill C-240, an act to amend the Income Tax Act. I would like to first commend my colleague from Charleswood—St. James—Assiniboia—Headingley for introducing this important bill in Parliament. I know my fellow Manitoban has done some tremendous work over his personal and professional life to improve his country. Bill C-240 is an addition to his great work. It is for those reasons that I am proud to call him my colleague and seatmate in the House of Commons. Charities contribute immensely to the social, cultural and economic well-being of Canada. There are over 85,000 registered charities in Canada that collectively employ 2.4 million Canadians and contribute 8.4% of our nation’s GDP. However, the reality is that charities have experienced some of the most devastating impacts from the COVID-19 pandemic. When charities are hurting, so are Canadians. In a previous debate, my colleague noted that Canadian charities lost $10 billion during the pandemic alone. That is $10 billion less for the community foundations that improve the towns and cities we call home. It is $10 billion less for the education charities that grow young minds and provide hope for a better future. It is $10 billion less for the wildlife charities that lead critical research and deliver habitat conservation. It is $10 billion less for the arts and cultural charities that fuel vibrant communities. It is $10 billion less for the food banks that so many Canadians now depend on. Now with a cost-of-living crisis sweeping across our country, I fear that charities will continue to suffer from the reduced disposable income available to Canadians. It was just yesterday when the Bank of Canada significantly raised interest rates in an attempt to control record inflation. When Canadians are paying significantly more in debt payments, they cannot afford to donate to local charities at the end of the day. Canadian charities have filled many gaps in our society that government could not fill. I think of the Community Foundation of Swan Valley, which recently contributed to early learning centres in Swan River. I think of the Touchwood Park Association in Neepawa, which contributed immensely to providing opportunities for individuals with disabilities. I also think of the Dauphin & District Community Foundation, which continues to support recreational services in the parkland region. I could speak endlessly to the thousands of projects and initiatives that charities are responsible for in my constituency alone, but now is the time for the government to step up and support Canadian charities. Bill C-240 would significantly help Canadian charities through a simple change to the Income Tax Act. Bill C-240 would amend the Income Tax Act to waive the capital gains tax on the proceeds from the arm’s-length sale of privately owned shares or real estate when those proceeds are donated to a charity. This change would directly fuel a significant amount of new donations to Canadian charities year after year. Imagine a local business owner, an accountant, for example. An accountant owns a practice in their local community, and after years of hard work, the accountant decides to retire and sell the business. The owner sells the business for a $100,000 in profit and chooses to donate a portion of the sale to a favourite local charity. Under the current Canadian legislation, the accountant would be subject to a significant tax on the profit of the sale. In this case, the accountant would have to pay a capital gains tax of $25,000, assuming the absence of an exemption. This means the business owner would have $25,000 less to donate to a local charity, and the government would have $25,000 more to spend on who knows what. Bill C-240 would eliminate this tax bill if the accountant decided to donate the proceeds to a Canadian charity. The accountant would then have a choice between sending the money to the government or donating the money to a Canadian charity. I hope we can all agree that money is better spent when it is used in our local communities, as opposed to being sucked away in the black hole of government. The private sector can play a key role in supporting the work of charitable organizations, and Bill C-240 would enable it to do this. Too often, governments believe they have the answers to all of our problems, when in reality the citizens of our country are more than capable of addressing the needs of society. The independent Parliamentary Budget Officer has reported that Bill C-240 would increase charitable donations by nearly $1 billion over a period of five years. That is a significant number. Members of the House have an opportunity before them to forever increase donations to Canadian charities. I see no reason why they would oppose such a piece of legislation. Thankfully, this concept is not a new one. Previous Liberal and Conservative governments have initiated great work on this idea. The capital gains tax on gifts of publicly traded securities to Canadian charities no longer exists because of government action. Bill C-240 attempts to further this initiative with the exemption for shares of private companies. I can assure members of the House that there are many business owners who would rather give their money to charity as opposed to the government if they had the choice to do that. This bill would not incur any new government spending. It is simply taking the tax money that was on its way to the government’s coffers and putting it into Canadian charities. As the PBO report showed, for every one dollar the government forgoes under Bill C-240, approximately $1.26 goes to charity. This is a very noteworthy benefit. As an MP who proudly represents a rural region, I would be remiss not to mention the particular importance of charities in rural Canada. Charities are the foundation to the well-being of small and rural communities. It is very common for Canadians living in small towns to contribute to multiple charitable organizations. The limited services available in rural and remote communities emphasize the important role that charities have in supporting the people within them. Philanthropy is alive and well in rural Canada. Rural Canadians step up to help their neighbours and communities when needed. Charities turn this mentality into results. It is for reasons like this that I have no doubt Bill C-240 would have an amplified impact in rural Canada. In conclusion, Bill C-240 would directly support more than 85,000 registered charities in Canada at a time when they need support the most. It would incentivize more Canadians to increase support for the charities of their choice. There is a reason that so many high-profile charities and non-profit organizations have supported Bill C-240. I encourage members of the House to speak directly with charities in their local ridings to hear what this bill means to them. If they do so, they will hear the stark realities that Canadian charities are facing and the importance of creating an environment that incentivizes more giving. Once again, I would like to thank my colleague from Manitoba for introducing this important piece of legislation. I was proud to jointly second Bill C-240 and can assure him that I will be in voting in favour of this legislation. I encourage every other member of the House to do the same and send this bill to committee, where it can be further studied. As parliamentarians, I believe we should hear expert testimony on this legislation to better understand the positive impact it would have. Canadian charities have supported so many of us in so many ways. It is time for us to support them. Bill C-240 would enable us to do that.
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