Mr. Speaker, I am delighted to have this opportunity to address the NDP's high-tax agenda. It is shameful that the NDP, which has voted against every single tax cut we have introduced since 2006, would question our government's record on keeping taxes low with today's motion.
Moreover, to suggest the NDP, if given the opportunity, is not planning to raise taxes on Canadians or Canadian families is simply preposterous. It is and it will, starting with a $21 billion carbon tax. In contrast, our Conservative government has a proven track record of success when it comes to supporting families, individuals and small and medium-sized businesses. One aspect of this support is our government's commitment to keep taxes low. We strongly believe that lower taxes for families, individuals and businesses fuel job creation, economic growth and long-term prosperity. Small and medium-sized businesses are vital to Canada's economic success. When businesses pay less tax, they can grow and create more high-quality jobs for Canadians, the kinds of jobs necessary to compete in the 21st century economy.
Furthermore, our Conservative government believes in leaving more money in the pockets of hard-working Canadian families. By doing this, the government gives Canadian families more flexibility in making the choices that are right for them. Indeed, since 2006, we have cut taxes more than 150 times, reducing the overall tax burden to its lowest level in a half century. This is no exaggeration. We have cut taxes in every way government collects them. This includes personal taxes, consumption taxes, business taxes, excise taxes and much more, making Canada a magnet for new jobs.
Since the NDP does not seem to realize this and seems to have forgotten that it voted against all of those tax reductions, I will take a few moments to highlight some of these measures. Since 2006, we cut the lowest personal income tax rate to 15%; we increased the amount Canadians can earn without paying tax; we reduced the GST from 7% to 6% to 5%, putting an estimated $1,000 back in the pockets of an average family; we introduced and enhanced the working income tax benefit; and we introduced the tax-free savings account, the most important personal savings vehicle since RRSPs. The list goes on and on.
Now the NDP might be asking, “You have cut taxes, but are tax cuts good for Canadian families?” Interestingly enough, the leader of the NDP does not really believe tax cuts are all that important to Canadians. In fact, back in 2007, after we cut the GST to 5%, he said, “I don't think the average Canadian is going to see that much of a change”. The leader of the NDP could not have been more wrong. Canadian families like low taxes, not high NDP taxes. The NDP should take note of the measures I have just described, as well as the other tax-reduction measures our government has introduced. Indeed, the leader of the NDP might be interested to know that as a result of these measures, a typical family of four is saving over $3,200 in taxes each year. Not only that, but this has helped remove more than one million low-income Canadians from the tax rolls. I am sure those one million Canadians notice a change.
I am sure Canadian seniors noticed a change. Indeed, since 2007, over $2.7 billion in annual tax relief has been provided to seniors and pensioners. These include introducing pension income splitting, increasing the age credit amount by $2,000, doubling the pension income credit to $2,000, increasing the amount the GIS recipients can earn through employment without any reduction in GIS benefits, increasing the age limit for RRSPs to RRIF conversion to 71 from 69, introducing the largest GIS increase in more than 25 years, and much more.
Overall, we have removed more than 380,000 seniors from the tax rolls. In fact, a single senior can earn at least $19,892 and a senior couple at least $39,784 before paying any federal income tax. That is a proven record behind which I am happy to stand.
I would much rather take that record to Canadians than try to justify imposing a $21 billion carbon tax that would raise the price of everything Canadians buy, everything from gas to hydro to groceries.
I will never understand why the NDP's answer to everything is tax, tax, tax. On this side of the House, we believe in low taxes and keeping more money in the pockets of hard-working Canadians and their families.
One way to keep taxes low is ensuring that all corporations and Canadians pay their fair share of taxes. That is why our government has been diligent both at home and abroad to ensure everyone pays their fair share of taxes and to crack down on those few who attempt to game the system or break the rules.
Since 2006, and including measures proposed in economic action plan 2013, our government has introduced more than 75 measures to improve the integrity of our tax system. The tax loopholes we are closing would amount to over $2.5 billion in 2013-14 and more than $2.6 billion in 2014-15. Not only would this help keep Canada's tax rates competitive and low but it would keep Canada's tax system fair and equitable.
To be clear, we would be closing tax loopholes that a select few are exploiting to avoid paying taxes. Why would the NDP stand up for tax cheats? Loopholes do not serve an economic purpose. They do not grow our economy and they do not put people back to work. Why would the NDP stand up for tax cheats? By closing loopholes and putting an end to this type of exploitation, we can keep taxes low for Canadian families, seniors and businesses. Why does the NDP stand up for tax cheats?
Our government uses a variety of tools to identify and combat international tax evasion and aggressive tax avoidance. Economic action plan 2013 proposes a number of measures to enhance the CRA's ability to track down international tax cheats. Specifically, our government announced the stop international tax evasion program, a program that would allow CRA to pay individuals who have knowledge of major international tax non-compliance.
In addition, Canada has one of the most extensive tax treaty networks in the world, with 90 tax treaties and 16 tax information exchange agreements now in force, 3 other TIEAs signed and another 11 TIEAs under active negotiation. Through these agreements our government would make sure that everyone, whether at home or abroad, pays their fair share. That is the bottom line, and it is the right thing to do.
Unfortunately, the flaws with the NDP motion do not stop there.
In tabling the motion, the NDP has demonstrated a clear lack of understanding around how tariffs actually work, as well as the action our government has taken to reduce tariffs and expand our pro-trade agenda.
Let me begin by highlighting our government's record on tariff reduction.
Since 2009, our government has eliminated close to 1,900 tariffs and concluded 6 free trade agreements. Not only is this providing $590 million in annual tariff relief for Canadian consumers and businesses, but this action made Canada the first G20 country to become a tariff-free zone for manufacturers.
However our tariff reductions do not stop there.
Economic action plan would build on our government's strong record of reducing tariffs for consumers and retailers by announcing the elimination of tariffs on baby clothing, hockey gear and most sports and exercise equipment. Overall this would translate into $76 million in savings, a move welcomed by the president and CEO of the Retail Council of Canada who referred to these changes as “a win-win-win for consumers”. That is what I call real action.
Switching gears for a moment, I would be remiss if I did not take this time to clear the air on the issue of iPods and MP3 players, an issue the NDP clearly does not seem to understand. To be absolutely clear, there is no iPod tax; there never was and there certainly never will be under this government. Let me say it again: MP3 players, iPods and devices of this sort would continue to come into Canada duty-free. That is the way it was before economic action plan 2013, and that is the way it would continue to be after economic action plan 2013.
Instead of spreading lies, the New Democrats should do their homework and be honest with the Canadian people. Unfortunately, we have seen this before with the NDP, always eager to cast allegations of hypocrisy and lies without checking the facts. Well I have checked the facts, and the simple fact is that the opposition parties are the only ones pushing for an iPod tax. This just shows their lack of understanding of how tariffs work, including the general preferential tariff.
Allow me to dedicate some of the time I have left to enlighten my NDP colleagues on how the GPT operates. With respect to the GPT, let me be clear. This is a foreign aid program that was introduced in the 1970s to help the world's developing countries. At its foundation, this program was designed to help developing countries increase their exports. I do not think anyone in this House would deny that the world is very different today from 40 years ago. It is for that reason that many of the countries initially part of this program no longer need preferential access to Canada's market to grow their economies. For example, countries like Brazil, Russia, India and China have developed substantially over the past 40 years and today boast economies that are highly competitive.
I should note that this does not mean we are getting rid of this program. The GPT will provide incentives for Canadians to import from more than 100 countries remaining as beneficiaries of the program.
What does this mean? It means more support for the poorest countries and more incentives for other countries to sign free trade agreements with Canada; so in addition to the creation of jobs, this highlights yet another reason why our government has pursued an aggressive free trade agenda. I ask that the New Democrats listen to the Canadian Manufacturers and Exporters association on a recent edition of CTV's Question Period, when it stated:
This government eliminated tariffs on all inputs used by manufacturers, all machinery and equipment items we need to import.... This is a government that in general has been getting rid of tariffs, but we had to update the general preferential tariff. I mean it's 39 years since we updated it. It was meant to help developing countries...we were giving them preferential tariffs while their per capita GDP is higher than Canada's. The solution is what the government is doing, trying to negotiate free trade agreements with countries around the world so that we not only drop our tariffs but they drop their tariffs as well.... ...we're pushing the government to negotiate trade agreements that provide reciprocal benefits to both Canada and our trading partner.
I should note that since 2006 our government has implemented six free trade agreements with nine countries, free trade that the NDP has opposed. Why is the NDP ideologically opposed to free trade? Is it because it expands markets for Canadian business and creates more jobs for Canadians, or is it because it provides consumers with cheaper goods? As a matter of fact, these trade agreements have resulted in the elimination of some $63 million in annual tariffs on imports from these countries.
Given this, can members imagine what benefits we could realize through a free trade agreement between Canada and Europe? In fact, it is estimated that such an agreement would eliminate an additional $750 million in annual tariffs on imports from the EU. However, again the NDP is opposed. Indeed, the NDP's Canada–U.S. border critic backed the Canadian Auto Workers union's call to end trade negotiations altogether with the European Union. Once more, we have proof positive that the New Democrats have no interest in creating more jobs for Canadians or reducing the cost of goods for Canadian families.
It is very clear that keeping taxes low is a central element of Canada's economic action plan. Economic action plan 2013 is the next chapter in our government's long-term plan to strengthen the Canadian economy in an uncertain world and create jobs and growth while keeping taxes low for families and businesses, all while balancing the budget by 2015, and nothing shrinks deficits faster than a growing economy. To be clear, we will take no advice from the brothers and sisters in the NDP who believe we can tax our way to prosperity. In fact, they should think again.
Just this past weekend, the New Democrats had Joe Stiglitz, an economist from the U.S., speak at their convention. This is the same Joe Stiglitz who said that Greece in 2010 was having a “short-term liquidity” problem, claiming that Greece would not ever be in default.
At the same time, he was an adviser to the Greek government.
We will certainly not follow in the footsteps of socialist economies that crumbled under the weight of their own debt. Bloated government and imposing new taxes on Canadians and job-creating businesses is simply not the answer.
The measures our government has introduced since 2006 are not driven by politics. Our government remains focused on what matters most to Canadians: jobs, growth and long-term prosperity. That is the bottom line.
