Budget Implementation Act, 2006, No. 2

A second Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 implements the following income tax measures proposed or referenced in Budget 2006:
–       the new Canada Employment Credit;
–       the new Textbook Tax Credit;
–       the new tax credit for public transit passes;
–       the new deduction for tradespeople’s tool expenses;
–       a complete exemption for scholarship income received in connection with enrolment at an institution which qualifies the student for the education tax credit;
–       the new Children’s Fitness Tax Credit;
–       a doubling, to $2,000 from $1,000, of the amount on which the pension income credit is calculated;
–       an extension of the $500,000 lifetime capital gains exemption, and various intergenerational rollovers, to fishers;
–       the new Apprenticeship Job Creation Tax Credit;
–       a reduction of the current 12 per cent small business tax rate to 11.5 per cent for 2008 and to 11 per cent thereafter;
–       an increase, to $400,000 from $300,000, of the amount that a small business can earn at the small business tax rate, effective January 1, 2007; and
–       a reduction of the minimum tax on financial institutions.
Part 2 implements the proposal in Budget 2006 to lower the income tax rate on large corporation dividends received by Canadians.
Part 3 implements the proposal in Budget 2006 to reduce excise duties for Canadian vintners and brewers.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-28s:

C-28 (2022) Law An Act to amend the Criminal Code (self-induced extreme intoxication)
C-28 (2021) Strengthening Environmental Protection for a Healthier Canada Act
C-28 (2016) An Act to amend the Criminal Code (victim surcharge)
C-28 (2014) Law Appropriation Act No. 5, 2013-14

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:15 p.m.

Bloc

Yvan Loubier Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I thank my colleague for his question. Before I answer, I would just like to say that there are budget measures we can be proud of, because we in the Bloc Québécois have worked for years to get a government to include them in its budget.

I hope that this time we will be successful The Bloc Québécois, and only the Bloc Québécois, has made 10 attempts. Year after year, we introduced the bill, and year after year, we were beaten by the Liberals, even those from Quebec. The Conservatives did not want anything to do with this measure, but we had the support of the NDP. But I think we are going to win the vote on our anti-scab bill. I hope so, and I pray every night that we will. We have been fighting for this for years. I think that when an initiative comes from the heart, if we do not give up, in the end, we will be rewarded.

My colleague is quite right. Quebec sovereignty would enable us to repatriate all our taxes and all the taxes we pay to this Parliament. The other political parties do not give any consideration to Quebec's real values and real interests or to the Quebec government's game plan for lessening the impact of international competition and resource depletion. All the resources put toward a single nation, the nation of Quebec—it is obvious.

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I have a question for my colleague about the great alliance we have seen between the Conservatives and the Bloc. I would just like to know whether the alliance between the two parties is finally over? Will the marriage continue?

For I do not know how many years, we have seen the Bloc Québécois accomplish absolutely nothing in this country for Quebeckers as far as the fiscal imbalance is concerned. There were good negotiations with the current government to correct that. But now is the marriage over or it will continue?

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

Bloc

Yvan Loubier Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I remind the hon. member NDP member that they too supported the budget. This is somewhat strange, speaking of marriages.

Speaking of failed marriages and odd couples, I remind the hon. member that a little less than a year and a half ago, the NDP joined the corrupt Liberals. In the midst of the sponsorship scandal, they supported the Liberals and they supported their budgets, which included measures that were never fully implemented after the Conservatives won the last election.

The bill that they supported—I believe it was Bill C-48—was incredibly vague. The Liberal government did not even have to fulfill its promise. The NDP supported the corrupt government of the former Prime Minister on measures that did not include any commitment. They made a big deal about it during the last election campaign. And now, how many of them are here? Talk about credibility.

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Mr. Speaker, I would just pick up on the last point the hon. member made. I would bring to his attention that every time the government stands up and brags about money it is putting into anything that is socially progressive, that is money that came from Bill C-48, the NDP budget.

What I want to know is why the Bloc did not take the opportunity to see if we could make further amendments that would advance the very issues the member says are the key priorities for the Bloc, rather than just playing this game that as long as they are okay, they will not worry about everything else.

If we work together, we have more votes than they do. Why did the Bloc not take the opportunity to do what the NDP did, and that is amend a bad budget and bring in good things that benefit the people of Quebec and Canada?

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

Bloc

Yvan Loubier Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, the hon. member is asking me why. I will tell him that it is because we do not sell our services to the highest bidder. That is why.

When that budget was adopted, we were in the midst of the biggest scandal ever seen in federalism, the sponsorship scandal. We had just learned more about the fact that all federalist parties in this House, namely the Liberals, the Conservatives and the New Democrats, had participated in the plot to steal the 1995 referendum. They closed their eyes on cost overruns and they denied democracy by trampling on all the rules that Quebec had set, so that in the end the Yes and No sides were neck and neck.

Everyone got on the buses—New Democrats, Liberals and Conservatives—to come to Montreal and participate in the love-in. They all participated in that denial of democracy. That is why we would not have made a pact with the devil. If the New Democrats want to do it, fine, but we have stronger convictions, more heart and we know better.

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, may I ask for unanimous consent to split my time with the member for Skeena—Bulkley Valley, please?

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

The Acting Speaker Andrew Scheer

Does the hon. member for Trinity—Spadina have the unanimous consent of the House to split her time?

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

Some hon. members

Agreed.

Budget Implementation Act, 2006, No. 2Government Orders

October 25th, 2006 / 5:20 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, the success of a nation is judged by how we treat our children. The success of a budget is really dependent on whether we invest in children.

The hon. members opposite talked about scandals. Let me tell them that it is scandalous when we have a country as rich as Canada and we have 1.2 million children living in poverty at a time when we have a surplus of almost $20 billion. We have children living in Canada who are going to bed hungry. That is a true scandal.

It is scandalous that we have parties here that are willing to support the budget. I understand why the Conservative government would support its own budget, but I do not understand why any other party in the House would support this kind of scandalous behaviour in a budget that treats our children in such a way.

It is a deliberate choice when we have a surplus but we do not invest in child care. It is a deliberate choice when we do not invest in affordable housing. It is a deliberate choice when we do not put more money into the child tax benefit so families will get more money and parents will not have to worry about having to pay the rent or feed their kids.

Today is child care appreciation day. The people who take care of our children earn very low incomes. They spend all day making sure that our kids are raised in a way that is healthy and productive. While we appreciate them, these workers are underpaid because we do not invest in child care.

This is a time when the government actually subsidizes the oil and gas industry to the tune of $1.5 billion. How could the government make such a choice? It is scandalous. Those dollars, whether it is $1.5 billion or the $20 billion surplus, really should be used to train young people so they can learn a skill, so that they will have employment, so that they could retrofit homes. By retrofitting homes and making them green, Canadians would save on their energy bills. By making them green, Canadians would have renovated houses and we would actually get less greenhouse gas pollution.

Because we have money, we can also increase the guaranteed income supplement so that the poorest seniors can live in dignity. The guaranteed income supplement, which supplements pensions and old age security, had not been increased for at least 12 years until last year, when there was a very small increase.

Unfortunately, a lot of seniors are isolated in their homes. They do not have the money to buy a transit pass to visit their friends or go to the library. I know that some of them do not even have enough money to pay the electricity bill because it is so expensive. These seniors live in our midst when Canada is awash with money, yet we subsidize and have more corporate tax cuts.

A few minutes ago I stood outside Parliament Hill, joining many refugees who are suffering in this country. Many poor and cold young children and their families were outside. These refugees have escaped persecution and seek refuge here. Many of these women have faced persecution and, in many cases, domestic violence.

They are all refugees. They have a heavy burden. They are poor. They have no resources. They are seeking the opportunity for a better life in Canada, yet they face the ultimate indignity. They are punished and penalized with refugee fees. That is a terrible burden. I believe the Liberals introduced these fees with the excuse that they were trying to balance the budget. It was a lame excuse for a terrible burden which amounts to a modern-day head tax.

Now the Conservatives are blindly continuing that with these fees. These fees are causing great suffering. They are causing despair because some families just cannot afford to pay them. The fees are driving some of the families underground. They are driving them to hunger. They are keeping people from making a contribution and building better lives. Really, these fees are a head tax, a tax on the most vulnerable and on those who cannot afford to pay them.

The government has a pattern of giving the most to those who need the least. It also has a habit of giving the least to those who need the most. We have seen it as--

The House resumed from October 25 consideration of the motion that Bill C-28, A second Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006, be read the second time and referred to a committee.

Budget Implementation Act, 2006, No. 2Government Orders

October 26th, 2006 / 10:10 a.m.

The Speaker Peter Milliken

When this item was last before the House, the hon. member for Trinity—Spadina had the floor. There are 14 minutes remaining in the time allotted for her remarks.

Budget Implementation Act, 2006, No. 2Government Orders

October 26th, 2006 / 10:10 a.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, this morning we notice that there is yet another international report that speaks of the need for Canada to invest in children. It is very much connected with the budget that we are debating today.

The annual UNESCO report on education in developing nations finds that the majority of countries, especially Canada, need to focus their efforts on policies that address the needs of an age group that it says is often overlooked. The report urges Canada to ensure that early childhood education is a high priority.

We know that in this budget, that is proposed for April 2007, the money for early childhood education will be eliminated. This follows a report that comes from the OECD which says that Canada is in fact at the bottom of the heap. It says that Canada has a failing grade. The report said that it is Canada's dirty little secret that we have actually tumbled down all the way to the bottom in the ranking. The report said that Canada should be investing at least $10 billion, which is the OECD goal, and 1% of the GDP as the minimum government investment.

We are at this time a dismal .03%, which is a fraction of the OECD target. It is no wonder that Canadian productivity is slipping and that Canadian businesses and industries are worried about our competitiveness and the competitiveness of our workforce. The OECD has clearly made a link between the national investment in quality early childhood education and productivity and competitiveness and growth.

I want to speak a bit about some of the kids in this country. A few years I asked children in my riding of Trinity—Spadina what they would do to make the world a better place. A five-year old wrote back and drew a very cute picture. She said that she wished from God that there would be money to buy groceries.

If we think about it, Canada is a really rich county. We have children in Canada that are praying to God for enough money to buy groceries. This means that obviously in her house and in the houses of some of her neighbours and friends there is no money to buy groceries. This means that oftentimes this little girl would go to bed and wake up hungry and would not be able to concentrate at school.

We see this especially in aboriginal communities. There are boil water advisories. We know of kids that have to sleep in shifts because there is not enough room in the bed in their house for them to be able to sleep at the same time. There is often only one room and there are several children.

In this kind of situation it is inexcusable that the government in this budget would not invest in aboriginal housing and early childhood education. Any money that the government has put aside in trust is last year's budget surplus. That money came from Bill C-48. This was the NDP budget money. These are the only dollars that the government is in fact investing in aboriginal housing, foreign aid and many other critically important areas.

I particularly remember a young person from the Dene nation. She had tears in her eyes when she talked about the sense of hopelessness that she had in her area. Yet, there are so many young people with many talents and skills to offer if they were to receive the kind of support and training that they so desperately need. These are young people who want to lead their communities and set a good example. We have not given them the tools in the budget to contribute.

On the youth employment front, I have received many letters from people in Toronto who talk about the importance of investing in young people, especially in the summer time. We know that recently there was a budget cut of at least $55 million. At this time we should be investing more on youth employment rather than cutting it.

I have a letter from Jacob Blomme, a concerned student, who talks about the job he has during the summer and how essential it is for him to have the opportunity to work in his field of study, so that he can make connections and be job ready when he finishes school. He knows that he is going to graduate with a $25,000 debt, which scares him because he is going to have to pay it back himself. Without jobs and training in his field of work, it is going to be even harder for him to find a job in the future. These are the young people of our future.

I have other letters. I have one from Canadian Crossroads International, for example, that talks about hiring dozens of young interns in recent years during the busy summer months to train young people overseas as volunteers by creating and supporting networks, working with HIV Without Borders, helping to manage the international AIDS conference in 2006, and supporting fundraising and ongoing research for organizations.

There are other organizations that say they desperately need money to invest in young people. They talk about the youth employment program standing out as a bright light of hope and empowerment in their own communities.

There are youth organizations that, because of training in the arts, were able to create many jobs, like the Fringe Festival in Toronto. There is a ticketed attendance of 47,000 people and $340,000 was given back to artists in the neighbourhood. When we invest in young people and in the arts, as a country we actually get the money back in our budget.

There is really no excuse. We know there is a surplus of $13 billion and none of it is invested in people or the future of our youth. It is the same with the new surplus of $6.7 billion. There is nothing invested to help people break the cycle of poverty or to eradicate child poverty. With the surplus, somehow the government feels it can tell Canadians they are overtaxed. It slashes programs and calls for tax cuts and yet our children go to bed hungry. I do not know whether members of Parliament know what it is like to go to bed hungry, but there are certainly a lot of those kids in this country.

If we look outside this country, we know that foreign aid is desperately in need of getting a boost in terms of investment. We know that more than 800 million people go to bed hungry around the world and 50,000 people die everyday from poverty related causes. That is why we absolutely have to increase Canadian aid by 18% annually and commit to a plan to meet the internationally agreed target for aid spending of .7% of our GDP by 2015.

We must also raise the annual Canada child tax benefit to $4,900 per child and ensure that all low income kids receive the full benefit of this program because that is in fact the demand of Make Poverty History. Think of what we could do with $20 billion. There are so many lives we could touch, but I fear the government does not get it. Perhaps it is not surprising that the government has so few women in their caucus.

The government thinks that the war on poverty is really a war on the poor. It thinks poverty is a nasty little habit that should be punished, stopped and penalized. It punishes the poor and gives tax breaks to those who do not need it. It gives the biggest baby bonus allowance to the spouses of the wealthiest people and the least to single mothers. We have a war against the poor rather than a war against poverty.

When we asked the government why it continued this track, why we were here day after day, it said it was because the Liberals were just as bad in the last 13 years. Imagine that. We had 13 years of Liberal neglect of important programs and the government used that as an excuse to reward the wealthy and punish the poor. This government seems determined to behave just as badly as the Liberals and to be even meaner in the neglect of social programs.

What kind of dumb ambition is that? That is the kind of ambition that we do not need in this House of Commons. We want to compete to be the best, not compete to be the worst, which is what is happening right now. Imagine being worse than the Liberals. I cannot even imagine that, but it is happening in front of me.

This House should rise together and demand better for refugees, children, senior citizens, women, aboriginals, immigrants, and for all of us. This budget is a sham. The poverty is real and more children are going hungry during this Parliament.

Budget Implementation Act, 2006, No. 2Government Orders

October 26th, 2006 / 10:20 a.m.

Liberal

Susan Kadis Liberal Thornhill, ON

Mr. Speaker, I must say that I predominantly agree with the thrust of the member's statements wholeheartedly, particularly with regard to the importance of having an early childhood education program that we had set up and signed with all the provinces, as she knows.

While I understand she was not here at the time, it was her party that helped trigger the election, with the other opposition parties, that led to its demise, it appears. We are still fighting with every breath to ensure that does not happen to this unprecedented early childhood program, which I agree would transform the lives, in terms of poverty, particularly of children in very difficult situations in our cities.

How does she rationalize the move that led to a serious backward step in the progress that we could have made in early childhood education? Why, and I believe it was Monday or Tuesday evening, did she vote with her party to not support our Liberal motion that was condemning these cuts that are particularly going to impact the underprivileged in our country?

Budget Implementation Act, 2006, No. 2Government Orders

October 26th, 2006 / 10:20 a.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, I wish that this House, in the last Parliament, enshrined early childhood education in legislation. If we had done that, if this Parliament had done so under the former government, then this new minority government would not be able to just tear up those agreements with the provinces with the stroke of a pen. It would have to come back to this House to seek a vote to cancel the legislation for early childhood education. I know that this new minority government would not be able to get that kind of legislation through this House of Commons.

I urge members of Parliament, on November 22, to support a national Canadian early learning and child care act. All future governments would not be able to tear up this kind of legislation. We would have early childhood education and any funding that we set aside, whether it is the $650 million this year or, hopefully, the $1.2 billion next year on early childhood education, would not be cancelled by a stroke of a pen or without having a debate here in the House.

I think it is critically important to have legislation to back up these agreements because without legislation the agreements would not be able to be implemented easily. That is number one.

Number two, in the past--

Budget Implementation Act, 2006, No. 2Government Orders

October 26th, 2006 / 10:25 a.m.

The Deputy Speaker Bill Blaikie

Order. We cannot get to number two because we have other members who want to ask questions.

The hon. member for Edmonton—Leduc.