Still, book royalties and advances account for a third of a writer's income, on average. And it is this income that is subject to the fluctuations that create the unfair taxation. A book, like any large creative endeavour, can take years to write. Yet the bulk of the income generated from that book usually arrives in one fell swoop or at best, over one or two tax years. There is very little in the way of deductions to write off against such income.
Creative work is by and large a human endeavour, a product of the intellect and the imagination.
A creator puts in years of labour and often years of sacrifice, incurring debt, doing without. Then when the payoff comes, that income is taxed as if it were earned entirely within that taxation year. Now that the Government's policies are showing financial benefits, the time is right to rectify this injustice and institute measures that will ease the tax burden on Canada's creators. We are pleased that in the past this Committee has recognized the injustice of this inequity and has recommended that the Government institute income back-averaging for creators. We urge the Members of this Committee to again request the Government to include creators in these considerations.