Debates of Oct. 17th, 2011

LaVar Payne Medicine Hat, AB

Mr. Speaker, I listened quite intently to our colleague across the way. We understand that the NDP is the high tax situation. It wants to increase taxes on corporations. If the NDP were in power, it would increase taxes on corporations. What would corporations do? They would not invest money in job opportunities for Canadians. In fact, most likely there would be layoffs because of the high tax burden that would be put on these organizations.

In fact, over the last number of years, the NDP has voted against every one of our budget measures, which have created well over 600,000 jobs. I ask the member if the NDP would remove its choice for high taxes for corporations.

Hoang Mai Brossard—La Prairie, QC

Mr. Speaker, I want to thank the member opposite for his questions.

If we look at what is happening at the provincial level—and my colleague knows this—the NDP believes in a balanced budget. However, this time we are talking about tax cuts that are somewhat idealistic. In 2008, the corporate tax rate was very competitive with the one in the United States and it is still lower than theirs. Do corporate tax cuts help the economy perform better and create jobs? Obviously not. Almost 2.5 million people are unemployed. It is a matter of choice and the current government is choosing its friends, the corporations, over the Canadian public.

Jonathan Tremblay Montmorency—Charlevoix—Haute-Côte-Nord, QC

Mr. Speaker, I was particularly glad to hear my colleague talk about corporate tax cuts and how they allow corporations to accumulate vast sums of money. Yet, the Conservatives' key argument is that these corporations will reinvest in the country. In fact, the money accumulates. I would like my colleague to elaborate on that.

Hoang Mai Brossard—La Prairie, QC

Mr. Speaker, I want to thank my colleague for his question. Indeed, the problem with the government's vision is that it gives tax cuts without asking for anything in return. Some $500 million is going into the coffers of large corporations and is not being reinvested. If tax cuts are given to the corporations and they can do what they want, then that money will go to the shareholders or in their coffers. That is only natural. Companies are worried about the economy and the government is doing nothing about it.

Joyce Murray Vancouver Quadra, BC

Mr. Speaker, I heard a Conservative colleague talk about tax breaks for large corporations being a way to reinvest in the community and jobs. However, we know that the largest corporations are not net producers of jobs. It is the small and medium-sized enterprises that are the net producers of jobs. We also know there is no research to suggest that this next layer of tax breaks will actually be invested in new Canadian jobs or in upgrades.

Would the NDP member comment on what impact the increased taxes on small businesses, through the EI tax increase, is likely to have on small business job creation?

Hoang Mai Brossard—La Prairie, QC

Mr. Speaker, it is true that the small tax credit the government is offering to small businesses does not compensate for the losses small businesses will have. It is really shocking when the government says that this is small business week and that small businesses are important. In the end, it is increasing the burden on small businesses, which we know are creating more than 50% of new jobs. Basically, the government is not heading in the right direction and that is why we are opposed to the proposals in Bill C-13.

Brent Rathgeber Edmonton—St. Albert, AB

Mr. Speaker, it is an honour for me to rise today and speak to Bill C-13, keeping Canada's economy and jobs growing act. This is important legislation, which seeks to implement the next phase of Canada's economic action plan.

The bill seeks to implement a number of important initiatives announced in June's throne speech and also in the spring election, and reiterates our government's firm and strong commitment to continued economic growth and job creation for all Canadians. Our government's record speaks for itself and speaks loudly.

Since July 2009 our government has created 600,000 net new jobs, most of which are full-time, and our economy is consistently rated as one of the strongest in the world.

This weekend we saw protests concerning the banking system. We know Canada's banking system is on solid ground because of appropriate regulations regarding lending habits. Thanks to that, we have a strong economy and it is consistent with our government's overall vision for the economy. However, we are not immune to turbulent events occurring in the world economy and that is why we must pass the legislation before us to ensure that we are capable of withstanding whatever lies before us.

Bill C-13, also known colloquially as the budget implementation act, would create five general themes in which there are many provisions to implement the next phase of Canada's economic action plan. The five general themes include: first, the promotion of job creation and economic growth; second, support of communities; third, help families; fourth, investment in education and training; and, fifth, respect for taxpayers. What I propose to do today is highlight one or two specific implementation measures contained in Bill C-13 under each of the five broad categories.

With respect to job creation and economic growth, it is important to note that this legislation would provide a temporary hiring credit for small businesses to encourage additional hiring. There is some agreement on both sides of the House that small business really is the engine of economic growth in Canada.

I talk to small businessmen and women frequently when I am back home in Edmonton--St. Albert and they have told me that the cost of hiring is an impediment to the expansion of their business. It is not just simply a matter of salary. With respect to an individual who might draw a salary of $40,000 per annum, I understand the actual cost to that small business is probably closer to $55,000 or $60,000 when benefits, unemployment insurance premiums and training are calculated. The government's solution to this is the $1,000 hiring credit for small businesses to encourage them to hire individuals and add to their payroll. I think we would all agree that is an appropriate tax credit and one that would help small businesses continue to hire and continue to build and grow our economy.

Also of significance are the provisions that would eliminate the mandatory retirement age for federally-regulated employees in order to give older workers who wish to work the option of remaining in the workforce.

I come from Alberta, and it is blessed in its ability to somewhat sustain economic downturns because of its resource-based economy. Notwithstanding current instability, some economists predict that there will be labour shortages in Alberta of up to 70,000 workers, mostly in construction but also in manufacturing and administration.

Reducing the mandatory retirement age for workers who reach the age of 65 would do two important things. First, it would give workers the option, if they so choose and their health is good, to stay in the workforce. Second, it would help employers who might otherwise be experiencing employee shortages to have some benefit in terms of maintaining their existing workforce and not retiring those people who have reached the age of 65. In many cases these long-tenured employees are the most valuable employees because they have been with their employer for a long time. If they are of value to the employer, the employer will want to keep the employees notwithstanding some arbitrary number of 65 years of age.

The second major theme in Bill C-13 is with respect to the support of communities. Certainly, it is of benefit to all municipalities, legislation of a permanent annual investment of $2 billion in the gas tax fund to provide predictable, long-term infrastructure funding for municipalities.

The municipalities in Edmonton—St. Albert have benefited from this gas tax fund. We have major infrastructure funding in Edmonton. Road construction seems to be an ongoing issue from the month of April to October. The city of Edmonton and the province of Alberta have nearly completed an aggressive ring road system, the Anthony Henday. The federal contribution with respect to that was from the gas tax fund.

Municipalities have been asking for stable funding, so to make this a permanent annual investment allows the municipalities to plan for their future capital infrastructure needs, and I credit the Minister of Finance with that provision in Bill C-13.

The other support for communities that I want to talk about is the tax credit for volunteer firefighters. This is an important provision, perhaps not that well understood. There are some 85,000 volunteer firefighters in Canada. These are individuals in small towns and counties who voluntarily fight fires to protect the property of their neighbours. Often fires occur in the middle of the night and individuals would be called from their sleep to fight a fire.

I am sure most members of the House know that there was a terrible fire northwest of Edmonton this year in Slave Lake. That required the resources of volunteer and professional firefighters. These individuals ought to be recognized for their contribution.

Third, with regard to helping families, we are introducing the new family caregiver tax credit to assist caregivers for all types of infirm dependent relatives. This is important to allow individuals to perhaps reduce their hours or, if they are self-employed, to reduce their revenue, to take care of elderly or infirm members of their family. Their business or employment opportunities will be compromised, but it allows the infirm or elderly member to be cared for in the home as opposed to putting that individual in some sort of group home, nursing home or retirement home. Ultimately, this is a great cost savings to taxpayers when these individuals can be looked after by their own families.

The new child tax credit would allow parents to deduct a tax credit for a portion of the fees for enrolling children in dance or music. We know these things can be expensive. There is value to both children and society and to families when children are involved in those types of activities. I credit the government for recognizing that and giving a tax credit to the parents.

We are forgiving loans to new doctors and nurses in underserved rural and remote areas. The last speaker talked about the doctor shortage and it is acute, but it is especially acute in rural and remote areas. This would help encourage doctors and nurses to relocate.

Finally, the fifth theme in this legislation is the respect for taxpayers. I am honoured and proud, and I wave this flag whenever I can, at the phasing out of the direct subsidy of political parties. I really believe, as do my constituents, that political parties ought to raise their own money and the taxpayer should not be compelled to pay for political causes that they do not support or believe in.

The economic action plan has been successful. The economy is on firm ground. We have one of the strongest, if not the strongest economy in the G7, and it is the result of this government's management.

Targeted investments are a reflection of the results we can achieve while working together toward the common goal of building strong and vibrant communities. The success of Canada's economic action plan is a tribute to the partnerships between local, provincial and federal governments.

We have risen to the challenge of the worst economic downturn in half a century, and with the keeping Canada's economy and jobs growing act, Bill C-13, we will ensure a robust and durable economic recovery that will continue to keep Canadians employed and sustain Canada's economic advantage now and in the future.

Jasbir Sandhu Surrey North, BC

Mr. Speaker, I am glad that somebody from the Conservative side realizes it is small businesses that create jobs. They are the economic engine for our country.

What really puzzles me is, if the Conservatives are to tax small businesses in the new year, how does that help small businesses? They are saying that they want to create jobs and provide a small tax credit to small businesses, but yet they are taxing small businesses. How would that help create jobs for Canadians?

Brent Rathgeber Edmonton—St. Albert, AB

Mr. Speaker, I thank the hon. member from British Columbia for his question and his concern for small business.

Certainly, this government, unlike the previous government, recognizes the vital role that small business plays in the economy and job creation. Tax rates have continued to be lowered by this government, both in terms of corporate tax rates for small businesses that are incorporated and also individual tax rates for the small businesses in more of self-employed situations.

I am not sure if he is talking about employment insurance premiums, but certainly that fund has had some problems given that there have been more claimants with respect to the economic downturn. The government recognizes this, hence the $1,000 tax credit for new hires that would offset the costs of hiring new individuals.

Kevin Lamoureux Winnipeg North, MB

Mr. Speaker, the bill is entitled “Keeping Canada's Economy and Jobs Growing Act”. However, to look at one of the underlying statistics that was brought to our attention earlier today by the finance critic of the Liberal Party, back in August 2008, there were 14,631,000 employed and today that has dropped significantly, virtually by half a million, to 14,106,000.

Does the member not recognize that the most important issue today is jobs and the need to create jobs? Does he believe that this budget would create the hundreds of thousands of jobs necessary to really make the difference and make up for that gap in jobs that have been lost since the government has been in office?

LaVar Payne Medicine Hat, AB

Mr. Speaker, I am happy to be asking my colleague from Edmonton—St. Albert a question. He talked about the political subsidy in his speech. In my riding I hear this all the time, “Get rid of that political subsidy, the $1.95 per vote”. I want to ask my colleague, has he heard the same kind of comment from his constituents?

Brent Rathgeber Edmonton—St. Albert, AB

Mr. Speaker, I heard it loud and clear. Certainly in Edmonton—St. Albert the constituents are adamant that the $1.95, soon to be $2.00, per vote subsidy which costs taxpayers $30 million on an annual basis ought to be eliminated, and thankfully it would be eliminated with Bill C-13.

Political parties, and all other voluntary organizations, ought to be able to raise their own money. Of course, there is assistance that will continue, including a 75% tax credit for donations up to a specified amount. When we are dealing with a generous tax credit system, there is no reason for a political subsidy of $2.00 per vote. Canadians should only have to pay for and support the political parties that they support.

Sadia Groguhé Saint-Lambert, QC

Mr. Speaker, many of those who spoke before me talked to the House about poverty and about Canadians who are living in very difficult situations. More and more people are relying on food banks. That is a telling indicator. From coast to coast, Canadian families are having a harder time taking care of themselves and feeding, housing or clothing themselves. The cost of living is rising higher and higher for these families, and they cannot manage to make ends meet. They are finding it even more difficult to meet these basic, fundamental needs because of the current crisis, which is rocking the foundations of the world economy.

In Canada, the gap between the rich and the less fortunate is growing. The current crisis has a particular impact on the most vulnerable people in our society, such as single-parent families, seniors, welfare recipients and the unemployed. Even people who are employed are making use of food banks.

Canada 's economic and social situation is worrying. According to recent statistics, approximately 1.4 million Canadians are officially unemployed. That number is close to 2 million if we include those who have given up or are underemployed. The International Monetary Fund predicts that Canada's unemployment rate will rise this year to 7.6%. According to the projections of this financial institution, the unemployment rate will rise from 7.6% in 2011 to 7.7% in 2012 because our economy is growing more slowly than expected. This high unemployment rate is costing $20 billion a year in lost income, not to mention the losses in terms of economic stimulus and tax revenue.

No segment of the population is immune. Youth employment is considered to be a disaster. The youth unemployment rate reached 17.3% last summer, which is an increase from the previous year and from the pre-recession unemployment rate, which was under 14%.

As we all know, Canada's current economic situation requires measures that will help reduce unemployment, create jobs and support the economy.

On September 29, 2011, in his fiscal sustainability report for 2011, the Parliamentary Budget Officer stated that Canada's fiscal structure is not sustainable over the long term. Economists and other financial experts are constantly pointing out how fragile the current economic situation is.

In order to reduce unemployment and stimulate the economy, considering how fragile the current economic situation is, we need measures that will support the economy and create jobs. Bill C-13 is completely out of touch with the problems facing Canadians. Accordingly, the measures it calls for do not address the current economic imperatives or the problems facing Canadian families, seniors and youth hit hard by unemployment.

The measures proposed in Bill C-13 are based on forecasts that no longer apply, as demonstrated by the International Monetary Fund, and on minimal-state theories that reject social programs. The measures are unrealistic and completely out of touch, not only with the real needs of Canadians, but also with the general economic situation that experts are describing as fragile and shifting. The budget proposed by the Conservatives does not even begin to respond to the needs of Canadian families, who want concrete measures to create jobs and promote economic growth. The measures proposed in Bill C-13 do nothing to address concerns about employment, improving health care for all Canadians, strengthening pensions and taking care of seniors in need. The measures set out in the bill do nothing to promote job creation.

Bill C-13 is sacrificing Canadian families while offering large corporations lavish and substantial tax reductions, which are not even conditional upon job creation. These tax credits are granted even if the corporations do not create any jobs to respond to the challenge of unemployment. In other words, the reductions serve only to reward companies that already have employees, whereas the economic recovery needs new jobs to put Canadians who are looking for employment to work.

Furthermore, since they are based on a certain income level, the tax credits in Bill C-13 actually benefit only a very few Canadians, mainly wealthy individuals. They exclude many people who, because of their poverty, do not pay taxes and therefore cannot benefit from these tax credits. Seen from this perspective, it is clear the tax credit measures are just for show. For example, Bill C-13 talks about tax credits for family caregivers. Creating such a tax credit is not a sufficient response to the needs of people who take time off to take care of their loved ones who are ill, simply because they must have a sufficient level of income to be able to benefit from the tax credits set out in Bill C-13. A total of 65% of households with a caregiver declare a combined income of less than $45,000 and 23% declare less than $20,000. In short, most caregivers cannot benefit from the tax credits in question.

For this measure to provide direct support to caregivers, we, the NDP, are proposing that these tax credits be turned into tax credits for caregivers. That is a concrete measure that responds to genuine needs. And that is why a number of members who spoke before me have proposed that the child disability benefit be used as a model. Caregivers would receive a monthly non-taxable amount that would help them cover the costs associated with taking care of a sick family member. This type of credit would be of particular help to low- and middle-income caregivers.

Another example from Bill C-13 is the tax credit for medical expenses. This credit allows Canadians to claim medical expenses that are not covered by the public health system. But the problem is that this measure does not fix the underlying issue in its entirety—Canadians with excessive medical expenses that are not covered by our public health system cannot recover all the expenses they incur.

The NDP is calling upon the government to listen to the needs of Canadians by creating a national pharmacare program, which would reimburse Canadians for all their medical expenses.

This same inconsistency exists with the children's arts tax credit. Where will people who already have a hard time feeding themselves find $500 to invest in arts activities to benefit from this credit? The measure proposed by Bill C-13 regarding the partial forgiveness of student loans for doctors and nurses raises the same questions.

Canadian families deserve better. They want concrete action to create jobs and fix the economy, not the Conservative government's half measures. Concrete measures need to be taken—ones that target the real job creators—instead of tax cuts being handed to big business.

According to the IMF, long-term, stable economic growth depends on equitable revenue distribution. In light of the objections I have raised, we believe that Bill C-13 does not contain enough measures to support the economy and jobs in Canada. It should be rejected, pure and simple.