Debates of Oct. 31st, 2007

Paul Szabo Mississauga South, ON

It is called chapter 11, Jim. It is all right.

Ralph Goodale Wascana, SK

What about Genevieve from Winnipeg? Tell us about Canadians.

Jim Flaherty Whitby—Oshawa, ON

Relax, Ralph? You are going to get a hernia.

The Speaker Peter Milliken

Order, please. I urge all hon. members to exercise more judicious control. We cannot hear the answers or even the comments that are being made there are so many at one time. The hon. Minister of Finance has the floor. We will have some order, please.

Jim Flaherty Whitby—Oshawa, ON

Mr. Speaker, the point is that we on this side of the House are levelling the playing field for all Canadian taxpayers, not defending special treatment of a 15% tax rate for American investors.

Michael Ignatieff Etobicoke—Lakeshore, ON

Mr. Speaker, what is the level playing field here: 31.5% for income trusts and 15% for other corporations? There is no level playing field at all.

Today the government still has not offered anything to Canadians who were punished by this government's incompetence regarding income trusts.

What is the government going to say to Canadians who lost their retirement savings? Tough luck?

Jim Flaherty Minister of Finance

Mr. Speaker, the taxation of income trusts does not begin for several years. That is to give it time to adjust. At that time, it will be a level playing field. Regardless of the way Canadians choose to organize a corporate structure, the rate of tax will be the same.

That is what a level playing field is and, in fact, the level will be way down. Because of the announcement yesterday in the economic statement, we are reducing taxes for all Canadian businesses dramatically. It is a new era in Canadian taxation.

Stephen Harper Prime Minister

Mr. Speaker, this sector is clearly in crisis. That is why we addressed this problem in the throne speech, which the Bloc Québécois voted against. The fact is that this government made a commitment to lower taxes for all Canadians, and this government kept its word.

Gilles Duceppe Laurier—Sainte-Marie, QC

Mr. Speaker, we voted against the throne speech because although it states that there is a manufacturing crisis, the government is not doing anything about it.

The economic statement says that there has been a 3% decline and that 130,000 jobs have been lost, yet the government is doing nothing. It is lowering taxes. Most manufacturing companies are not turning a profit and therefore pay no tax. The fact is that the tax cuts are a big gift to the oil companies, which are making huge profits and will get huge deductions, not to the companies that are making no profit and are in crisis.

Stephen Harper Prime Minister

Mr. Speaker, this government is going to reduce taxes for all companies, for all individuals and for all families in Canada and Quebec. The real reason why the Bloc is voting against benefits for people is that the Bloc has never accomplished anything for any sector in Quebec. The Bloc will never do anything for any sector.

Paul Crête Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Mr. Speaker, the Bloc members have always served Quebeckers. That is why they have been re-elected five times in a row.

The Minister of Finance is hoping that lowering the GST will boost consumption. I should point out that people with low incomes who spend 70% of their resources on food and housing do not pay GST on those items.

Does the Prime Minister realize that reducing the GST will not help these people make ends meet, that his lack of compassion will have a major impact on them and that there are two classes of citizens in this budget?

Jim Flaherty Minister of Finance

Mr. Speaker, the tax reductions yesterday for individuals and families in Canada are very substantial. In fact, they are about $45 billion for this year and the next five years.

Not only that, but the income tax reductions for individuals and families are retroactive to January 1 of this year. As soon as we get into the new year and Canadians start receiving their T-4 slips, they can file their income tax returns and get the big rebate cheques.