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Matthew Coon-Come's Race Card Rhetoric

Author: Mark Milke 2001/08/29
If there is an easier way to dismiss criticism of an idea or policy than by playing the race card, politicians have not yet invented it. Recently, Matthew Coon-Come, the national chief for the Assembly of First Nations, and a politician like any other, held up that same card and bashed Canada for planning to attend a racism conference in South Africa. Mr. Coon-Come insinuated that Canada was in fact still very racist.

It is hardly necessary to match Mr. Coon-Come's inflammatory rhetoric; Instead, Canadians should coolly analyze his central charge: that Canada is yet a country where aboriginals are "faced with the threat of extinction" and that racism against the native population is "direct and systemic."

In contrast to the allegation, here are the facts, in form of tax exemptions, social policies and funding available for natives. Ignore the debate over whether such items might constitute discrimination against other Canadians, or whether some items might perpetuate poverty instead of ameliorate it. Also, skip over why such anomalies exist, whether because of the Indian Act (which can be changed) or treaty or constitutional provisions (which are difficult to modify). Note that some of the following applies to only certain natives (treaty Indians on reserves for example) while other benefits apply across the board.

Provincially, almost anything bought on a reserve or delivered to it is exempt from provincial sales taxes. Think of automobiles, leases or rentals of any sort, alcoholic beverages and household goods, as well as the children's bicycles and the family television. Legal services, as well as fuel, electricity, natural gas, pay television, telephones, and property repairs are also exempt. In other words, any and every good and service is not taxed.

Federally and provincially, income earned on a reserve is exempt from income tax. Some Ontario natives have even attempted to "lease" employees to off-reserve employers and still preserve the tax exemption, though the courts recently cut down that attempt to expand non-taxable status. (The native company in question has appealed.)

In terms of racial set-asides and quotas there is also a fairly extensive list. ("Affirmative action" and "employment equity" are the preferred political terms, but such doublespeak in an insult to language, which exists to facilitate clear communication, not muddy it.) For example, hiring quotas exist in Canada's public service both federally and provincially and any contracted service for mostly aboriginals is "reserved" by the federal government for majority native-owned businesses.

In total, the federal government spends $7 billion every year trying to improve the lot of Canada's natives; provincial governments spend about $3 billion. Neither of those figures includes the value of the various tax credits. Income tax exemptions alone are estimated to exempt $1 billion worth of income from taxation, worth perhaps $200 million to $300 million to the public treasury.

In addition to these aboriginal-specific tax credits/exemptions and aboriginal-specific programs, there are a myriad of other benefits: money for houses on reserves and for off-reserve housing repairs; A registered Indian is eligible for a 33 percent discount on government-owned Via Rail; And in one of the newest taxpayer transfers recently initiated, the mainly native Nunavut territory will receive $500 million this year from Canada's taxpayers.
In terms of lifting natives out of poverty, or the issue of accountability for money spent, the usefulness of much of the above can be debated. But such tax exemptions, social policies and funding exist for the precise opposite reason suggested by Matthew Coon-Come. He should now spare Canadians the rhetoric.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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