Keeping Canada's Economy and Jobs Growing Act

An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 of this enactment implements income tax measures and related measures proposed in the 2011 budget. Most notably, it
(a) introduces the family caregiver tax credit for caregivers of infirm dependent relatives;
(b) introduces the children’s arts tax credit of up to $500 per child of eligible fees associated with children’s artistic, cultural, recreational and developmental activities;
(c) introduces a volunteer firefighters tax credit to allow eligible volunteer firefighters to claim a 15% non-refundable tax credit based on an amount of $3,000;
(d) eliminates the rule that limits the number of claimants for the child tax credit to one per domestic establishment;
(e) removes the $10,000 limit on eligible expenses that can be claimed under the medical expense tax credit in respect of a dependent relative;
(f) increases the advance payment threshold for the Canada child tax benefit to $20 per month and for the GST/HST credit to $50 per quarter;
(g) aligns the notification requirements related to marital status changes for an individual who receives the Canada child tax benefit with the notification requirements for the GST/HST credit;
(h) reduces the minimum course-duration requirements for the tuition, education and textbook tax credits, and for educational assistance payments from registered education savings plans, that apply to students enrolled at foreign universities;
(i) allows the tuition tax credit to be claimed for eligible occupational, trade and professional examination fees;
(j) allows the reallocation of assets in registered education savings plans for siblings without incurring tax penalties;
(k) extends to the end of 2013 the temporary accelerated capital cost allowance treatment for investment in machinery and equipment in the manufacturing and processing sector;
(l) expands eligibility for the accelerated capital cost allowance for clean energy generation and conservation equipment;
(m) extends eligibility for the mineral exploration tax credit by one year to flow-through share agreements entered into before March 31, 2012;
(n) expands the eligibility rules for qualifying environmental trusts;
(o) amends the deduction rates for intangible capital costs in the oil sands sector;
(p) aligns the tax treatment to investments made under the Agri-Québec program with that of investments under AgriInvest;
(q) introduces rules to strengthen the tax regime for charitable donations;
(r) introduces anti-avoidance rules for registered retirement savings plans and registered retirement income funds;
(s) introduces rules to limit tax deferral opportunities for individual pension plans;
(t) introduces rules to limit tax deferral opportunities for corporations with significant interests in partnerships;
(u) extends the tax on split income to capital gains realized by a minor child; and
(v) extends the dividend stop-loss rules to dividends deemed to be received on the redemption of shares held by certain corporations.
Part 1 also implements other selected income tax measures and related measures. Most of these measures were referred to in the 2011 budget as previously announced measures. Most notably, it
(a) accommodates an increase in the annual contribution limit to the Saskatchewan Pension Plan and aligns its tax treatment with that of other tax-assisted retirement vehicles;
(b) clarifies that the “financially dependent” test applies for the purposes of provisions that permit rollovers of the assets of a deceased taxpayer’s registered retirement savings plan or registered retirement income fund to an infirm child or grandchild’s registered disability savings plan;
(c) ensures that the alternative minimum tax does not apply in respect of securities that are subject to the election under section 180.01 of the Income Tax Act;
(d) clarifies the rules applicable to the scholarship exemption for post-secondary scholarships, fellowships and bursaries; and
(e) amends the pension-to-registered retirement savings plan transfer limits in situations where the accrued pension amount was reduced due to the insolvency of the employer and underfunding of the employer’s registered pension plan.
Part 2 amends the Softwood Lumber Products Export Charge Act, 2006 to implement the softwood lumber ruling rendered by the London Court of International Arbitration on January 21, 2011.
Part 3 amends the Customs Tariff in order to simplify it and reduce the customs processing burden for Canadians by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also simplify the structure of some provisions and remove obsolete provisions.
Part 4 amends the Customs Tariff to introduce new tariff items to facilitate the processing of low value non-commercial imports arriving by post or by courier.
Part 5 amends the Canada Education Savings Act to make the additional amount of a Canada Education Savings grant that is available under subsection 5(4) of that Act available to more than one of the beneficiary’s parents, if they share custody of the beneficiary, they are eligible individuals as defined in section 122.6 of the Income Tax Act and the beneficiary is a qualified dependant of each of them.
Part 6 amends the Children’s Special Allowances Act and a regulation made under that Act respecting payments relating to children under care.
Part 7 amends the Canada Student Financial Assistance Act to provide that the maximum aggregate amount of outstanding student loans is to be determined by regulation, to remove the power of the Minister of Human Resources and Skills Development to deny certificates of eligibility, and to change the limitation period for the Minister to take administrative measures. It also authorizes the Minister to forgive portions of family physicians’, nurses’ and nurse practitioners’ student loans if they begin to work in under-served rural or remote communities.
Part 7 also amends the Canada Student Loans Act to authorize the Minister to forgive portions of family physicians’, nurses’ and nurse practitioners’ guaranteed student loans if they begin to work in under-served rural or remote communities.
Part 8 amends Part IV of the Employment Insurance Act to provide a temporary measure to refund a portion of employer premiums for small business. An employer whose premiums were $10,000 or less in 2010 will be refunded the increase in 2011 premiums over those paid in 2010, to a maximum of $1,000.
Part 9 provides for payments to be made to provinces, territories, municipalities, First Nations and other entities for municipal infrastructure improvements.
Part 10 amends the Canadian Securities Regulation Regime Transition Office Act so that funding for the Canadian Securities Regulation Regime Transition Office may be fixed through an appropriation Act.
Part 11 amends the Wage Earner Protection Program Act to extend in certain circumstances the period during which wages earned by individuals but not paid to them by their employers who are bankrupt or subject to receivership may be the subject of a payment under that Act.
Part 12 amends the Canadian Human Rights Act to repeal certain provisions that provide for mandatory retirement. It also amends the Canada Labour Code to repeal a provision that denies employees the right to severance pay for involuntary termination if they are entitled to a pension. Finally, it amends the Conflict of Interest Act.
Part 13 amends the Judges Act to permit the appointment of two additional judges to the Nunavut Court of Justice.
Part 14 provides for the retroactive coming into force of section 9 of the Nordion and Theratronics Divestiture Authorization Act in order to ensure the validity of pension regulations made under that section.
Part 15 amends the Canada Pension Plan to include amounts received by an employee under an employer-funded disability plan in contributory salary and wages.
Part 16 amends the Jobs and Economic Growth Act to replace the reference to the Treasury Board Secretariat with a reference to the Chief Human Resources Officer in subsections 10(4) and 38.1(1) of the Public Servants Disclosure Protection Act.
Part 17 amends the Department of Veterans Affairs Act to include a definition of dependant and to provide express regulation-making authority for the provision of certain benefits in non-institutional locations.
Part 18 amends the Canada Elections Act to phase out quarterly allowances to registered parties.
Part 19 amends the Special Retirement Arrangements Act to permit the reservation of pension contributions from any benefit that is or becomes payable to a person. It also deems certain provisions of An Act to amend certain Acts in relation to pensions and to enact the Special Retirement Arrangements Act and the Pension Benefits Division Act to have come into force on December 14 or 15, 1994, as the case may be.
Part 20 amends the Motor Vehicle Safety Act to allow residents of Canada to temporarily import a rental vehicle from the United States for up to 30 days, or for any other prescribed period, for non-commercial use. It also authorizes the Governor in Council to make regulations respecting imported rental vehicles, as well as their importation into and removal from Canada, and makes other changes to the Act.
Part 21 amends the Federal-Provincial Fiscal Arrangements Act to clarify the legislative framework pertaining to payments under tax agreements entered into with provinces under Part III.1 of that Act.
Part 22 amends the Department of Human Resources and Skills Development Act to change the residency requirements of certain commissioners.

Elsewhere

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

Votes

Nov. 21, 2011 Passed That the Bill be now read a third time and do pass.
Nov. 16, 2011 Passed That Bill C-13, An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Nov. 16, 2011 Failed That Bill C-13 be amended by deleting Clause 182.
Nov. 16, 2011 Failed That Bill C-13, in Clause 181, be amended (a) by replacing line 23 on page 206 with the following: “April 1, 2012 and the eleven following” (b) by replacing line 26 on page 206 with the following: “April 1, 2016 and the eleven following” (c) by replacing line 29 on page 206 with the following: “April 1, 2020 and the eleven following”
Nov. 16, 2011 Failed That Bill C-13 be amended by deleting Clause 181.
Nov. 16, 2011 Failed That Bill C-13 be amended by deleting Clause 162.
Nov. 16, 2011 Passed That, in relation to Bill C-13, An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 17, 2011 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
Oct. 6, 2011 Passed That, in relation to Bill C-13, An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 and other measures, not more than three further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the third day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:05 p.m.
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Conservative

Dan Albas Conservative Okanagan—Coquihalla, BC

Mr. Speaker, simply put, the government has taken more action to help small business and has been doing so since taking office in 2006. In this particular budget it is providing a temporary hiring credit for small business to encourage that additional hiring.

All our members are thinking about the economy. We are focused on jobs and economic growth. We are listening to people, such as those from the Canadian Federation of Independent Business, who are solidly behind us because they know it is the right thing for our economy and for Canada.

I call upon my hon. colleague to support this measure and all of the measures in our budget.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:10 p.m.
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Conservative

Parm Gill Conservative Brampton—Springdale, ON

Mr. Speaker, I thank my colleague for his passionate speech as well as his hard work on behalf of his constituents.

There is also a very large manufacturing base in my riding where I am hearing a lot of positive feedback from businesses, especially with regard to the accelerated capital allowance.

For those businesses as well as the members in the House who may not be fully aware, I would appreciate if the member would elaborate on what it would do and how it would benefit small business.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:10 p.m.
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Conservative

Dan Albas Conservative Okanagan—Coquihalla, BC

Mr. Speaker, there are a number of particulars in Bill C-13 that we can all support.

A temporary hiring credit for small business would encourage additional hiring. Right now businesses are in a state of uncertainty. They read things in the newspaper. We want to encourage them to hire new people by reducing those costs. By reducing those costs we give them more certainty which allows them to expand their business, which could be by getting more sales or providing better service.

Going back to the accelerated manufacturing credit, I would also mention that it is those kinds of business decisions that we want to encourage where they can buy that new equipment, such as a big master planer. We want to ensure that businesses feel encouraged that now is the time to be supporting economic growth and getting those jobs.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:10 p.m.
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Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, thanks to technology I was able to find on Google the company Structurlam, which the member mentioned. It looks like quite a company and is the type that will do well in the future.

He talked about the accelerated capital cost allowance and how it would allow companies like that to purchase larger machinery. However, does he not fear that the decreasing dollar value, now hovering closer to 90¢, would wipe out a lot of the credits and benefits that may ensue from the government's budget?

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:10 p.m.
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Conservative

Dan Albas Conservative Okanagan—Coquihalla, BC

Mr. Speaker, basically we have a business environment where on long-term expenditures, such as purchasing such big master planers or whatnot, it is important to send the right signal now. We are saying we support jobs and economic growth. We support and encourage those businesses to meet those challenges. There will always be challenges. However, this government stands behind big and small businesses no matter where they are in Canada.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:10 p.m.
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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I will be sharing my time with the hon. member for Bonavista—Gander—Grand Falls—Windsor, a lovely riding.

I will change course a bit. The last two members spoke at length about what this budget does for big business and corporations in Canada. Certainly we in the Liberal Party understand fully that one of the greatest things a Canadian can have is a job. It is important that our corporations are strong and our small business owners do well. Those initiatives are important but we cannot do that in isolation. We have seen what happens with trickle-down investments. Very rarely do those in need in this country reap any type of benefit.

In 2007, 9.2% of the population was living in poverty. Now almost 10% of the population is living close to the poverty line. Therefore, I will focus my comments today on those who do not have a voice, those I have not heard mentioned throughout this debate and those not mentioned in the chamber.

Before I begin my comments on poverty, I want to speak specifically about some of the closures of Service Canada and EI processing centres that are taking place across the country. There are 600 people processing EI applications now who will be sent home over the next number of months. Conservatives talk about investing in rural communities. This action by the government will take jobs out of rural Canada and consolidate them into fewer positions. However, those positions that will be maintained will be moved into centres that have very low unemployment rates.

I point specifically to three cases where the government centralized jobs. In Gander, Corner Brook and Happy Valley-Goose Bay where the unemployment rate is 17%, the jobs are being moved to St. John's where the unemployment rate is under 6%. In Edmundston, Campbellton and Bathurst where the unemployment rate fluctuates anywhere from 11% to 15%, the jobs are being moved to Moncton where the unemployment rate is under 7%. Finally, in Sydney where the unemployment rate is over 16%, a number of jobs are being moved to Halifax where the unemployment rate is under 6%. It makes no sense at all.

When questioned in the House on this, the Minister of Human Resources and Skills Development came back with the line that they were temporary jobs created with the economic action plan. That is absolute hogwash. That is misinformation provided on the part of the minister. There are 70 employees at the call centre in Glace Bay, which has been operating for well over 25 years, where 50 are permanent and 20 are term. Those term employees were all employed prior to the economic action plan.

The part that makes no sense at all is that the government is trimming these jobs when we know we are on the cusp of another economic downturn. We have seen the increase in the unemployment rates, which we know will continue to grow. What will then happen is as more people are unemployed, they will file for benefits. When they contact the employment insurance office there will be fewer bodies to handle the calls which will create more of a backlog. That is unacceptable.

In 2006, 80% of calls were handled within the three minute work standard for responding to telephone inquiries at EI call centres. As we speak, that percentage has gone from 80% to 32%. Calls are being dropped. People are phoning to ask where their EI cheques are and wondering when the next bit of money will be coming in to buy groceries, diapers or whatever it might be to help keep that household running. They are having to call back 10, 15 or 20 times before they get an agent.

These are the most vulnerable in our society. These are people who have the toughest time working from paycheque to paycheque and there is no mention of that in this budget. That is unacceptable.

The budget is 642 pages long and the word “poverty” comes up twice. The government sees poverty as a spending issue. Most Canadians see it as an investment issue. Certainly the people on this side of the House see it as an investment issue and the government has missed the target completely with the initiatives taken in this budget.

There are a couple of glossy things in the budget. Conservatives throw a couple of nuggets in it. It is like a bouquet of thorns with a couple of roses thrown in for good measure. Where I have concern is in the totality of the budget, that it does not do enough for Canadians who are up against it and will continue to be as we go forward.

I want to bring to the attention of every member in the House a study which has just been done on poverty. Senator Art Eggleton did an exceptional study entitled “In From the Margins: A Call to Action on Poverty, Housing and Homelessness” on initiatives that could be pursued by the government in order to address poverty.

The Standing Committee on Human Resources and Skills Development embarked on a three-year study on poverty. Former NDPer Tony Martin did a lot of work on it. My great friend from Dartmouth Coal Harbour, Mike Savage, put a lot time on it. It was an excellent report that went forward to the government which pretty much dismissed it. The government is motivated by dollars and cents.

That is why I want to bring to the attention of members, especially those on the other side of the chamber, to the National Council of Welfare report which is a branch of the government. The study it just completed is entitled “The Dollars and Sense of Solving Poverty”. I am sure it will be distributed to all members, but I encourage them to take a look at it. It is a great study and talks about an investment model going forward to deal with some of the aspects of poverty.

Some of the anecdotal comments in the report highlight a couple of very obvious things. They make a great deal of sense. It talks about housing and investing in housing. If people do not have a place to live, or continue to find themselves in unacceptable housing conditions, if they are worried about whether they and their children are going to have a roof over their heads, that drifts into their physical health, their mental health and emotional well-being, but certainly their physical health as well. If people are sick and do not have a safe place to live, how are they able to focus on getting healthy again? Housing relates to costs on the health care system.

The study indicates that 20% of the cost of our health care system is attributed to socio-economic factors. If child care spaces are not available, how does a single mom take a job if she does not know what she is going to do with her children? If we have citizens who are engaged in the economy, if a single mother is able to go to school, or able to take a job, that is what we as legislators want to do. We want to ensure that those opportunities are there and the assets are in place so people can become contributing citizens within this great country.

The government has missed an opportunity in this budget. What scares me is that with the justice bills, things are going to get tougher on those who need help the most.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:20 p.m.
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Conservative

Bev Shipley Conservative Lambton—Kent—Middlesex, ON

Mr. Speaker, I thank my robust colleague across the way for his comments.

The member was talking about those who are being disadvantaged. In fact, we have done more for poverty-stricken and low income individuals in Canada.

Let us talk about the new veterans charter. When the Liberals were in government, they did none of these things to help our veterans who were sometimes up against the wall. There are now disability awards to recognize veterans' pain, suffering and injury of $800 to $285,000. As well, with the earnings lost benefit, income replacement while in rehabilitation, 75% have seen a minimum of $40,000, and, in fact, the top part is non-taxable. Also, the amount for death benefits was not as high as it is now at $285,000, which is non-taxable.

I list just a couple of things the government has done so far. I would not mind my colleague's response and hope that he would support it.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:25 p.m.
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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, one thing is for sure, it does not matter whether a member supports it or not, we know that the government would ram it through anyway. We know we are going to be force-fed here for the next four years.

I hold a great deal of respect for the member, and I listened as he stated his case on some of the boutique tax reductions. The government sort of has a buffet table of tax reductions; however, one must drill down to get into the actual aspects of it.

The government did a pretty good thing with the tax credit for volunteer firefighters, but it is a non-refundable tax credit. Those who are under a certain annual income would not be able to receive it. Therefore, there are some guys on the fire department who receive it and some who do not. It is not fair. It is not bad for some, but not for all. We see that with the family caregiver tax credit as well. These boutique tax cuts have a varying impact in the community.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:25 p.m.
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NDP

Denis Blanchette NDP Louis-Hébert, QC

Mr. Speaker, I would like to thank the hon. member for his speech, in which he spoke about the most vulnerable members of our society. I would like to ask him a question about the budget approach. He mentioned that it was the combination of all the small measures that created one big document. How does he think we could remodel this budget in the current economic context?

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:25 p.m.
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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, there is some piecemeal effort here, but we have seen programs before. Some past governments have done good things. We know where the level of poverty for seniors was in the 1960s and that it is considerably less now. We have seen programs like CPP and the guaranteed income supplement and, just by chance, they were Liberal initiatives. However, I am sure the opposition of the day supported that.

Good things can be done, but we have certainly not seen an attempt or any effort through this budget to even address poverty. Like I said, within the 640-odd pages of the budget, poverty is mentioned twice. We recognize that it is not a priority with the current government. We recognize that the poor in this country and those who find themselves close to the poverty line are on their own for the next four years.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:25 p.m.
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Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, I want to thank my hon. colleague from Cape Breton—Canso for generously sharing his time with me. I want to just add to his speech.

One element of his speech that I found should be brought up in the House once again is the measure by which jobs are to be put into efficiency mode. In other words, they are being shifted around and moved to places when in fact it is a cloak and dagger way to eliminate positions within the most vulnerable communities. In my riding in Newfoundland and Labrador, I have 195 communities and in one of those larger communities, Gander, it is losing 30 positions or more. They are moving to an area of lower unemployment and the excuses that come out boggle the mind.

The advent of technology has put us in a place where people can do their job in certain areas and they do not have to be centred around a particular building or group of people. It is a remote way of connecting. I heard one of the other members from the government talking about the wonderful broadband Internet strategy. As I mentioned, I have 195 communities in my riding and 65 of them do not have access to broadband Internet. It is like a community that has no access to even get in there. It is not good for business, it is not good for all these credits that the Conservatives are promising, as my colleague points out, these boutique tax credits. It means very little if they set up in a place that does not have access to broadband Internet and certainly some of the basic resources.

I want to move on to some of the measures that are contained within this budget and some of the stuff we find is a promising gesture. However, the promising gesture does not come to fruition. It does not come to its logical conclusion to allow those in poverty to be brought out of poverty and I can think of many examples such as the tax credits regarding the family, the volunteer firefighters and others. Because these tax credits are non-refundable, the lowest end of the poverty scale does not benefit from them. That is unfortunate because, in a big way, that is what these tax credits are for. That is probably the largest part of the population that would benefit the most from this. It is rather disingenuous when they play with these numbers and they do not explore the stories that exist behind them.

When the Conservatives reduced the GST by two points several years ago, I remember how they bragged about saving money for so many impoverished people. However, the story we do not hear is that the real beneficiary of a two-point cut in the GST was a person buying a home valued over $300,000 or buying a car that is valued over $20,000 or $25,000. The person who goes day to day scraping by, trying to get enough money to pay an electricity bill was not the biggest beneficiary of a 2% cut to the GST. Look what that did to the treasury itself.

So in the estimation of the government, it might be tax cutting that benefits the most vulnerable but it is not. If the government wants to brag about the tax cutting measures that it has for protecting elements of society like the upper class, the upper middle class or businesses, then it should say so.

My biggest problem with the particular government is not so much the thrust of its policy as it is the salesmanship behind it. In regard to something that was announced several months ago but now has been re-announced, but that is a whole other issue, the government will say that it will offer this brand new tax credit for small business that is taxed itself. The other issue is that, come January, there will be that increase or, so as not to offend the treasury, a modest increase in the EI premiums. It is a typical example of “I will give you this and while you aren't looking I'll take from here”. It shows up in the copyright legislation that we are about to debate but I will leave that for another day.

It is unfortunate because we are now in the middle of time allotment because the Conservatives have cut down on the debate in this House.

Let us face it, we are paid fairly well to be in the House, yet we cannot have this conversation. We cannot have this discussion among ourselves from all different regions of this country to find out what these measures will mean.

The median income in my riding is among the lowest in the country. It is not the lowest, but it is pretty close. Therefore, the message from people in my particular area would be that they do not benefit from this particular tax credit. Would it not be advantageous to have a refundable tax credit, so that someone who is on a lower income would get the benefit by way of a refund?

It would not be income tested. It would not be not based on an individual's particular income. This cuts across a wide array of these boutique tax credits, as my hon. colleague from Cape Breton points out, and quite rightly.

I do find that some of the matters that are not being discussed here are of great importance. Now that we have a majority government in place for the next four or five years, it is an opportunity for us to have a good, long discussion that is broad in scope on pension security.

Pension security will be one of those issues that will come back to haunt us several years down the road, and somebody will look back at us and say that at this particular moment, we did not really discuss what was most important. That is unfortunate.

I am not wholeheartedly against corporate tax cuts. I do believe, in many instances, that they do exactly what the government says. I do not think they are altruistic. I am not one of those people who blindly believes that any corporate tax credit will go directly toward creating new jobs. Corporations have shareholders; they want their returns, and they want a nice return. A lot of their shareholders include many of our seniors and the like, and there is nothing wrong with that. However, let us not expect a corporate tax credit to dig us out of levels of poverty at a time when we cannot really afford it.

I look at corporate tax credits and then I look at millions of dollars put into the F-35 jets. I am not one to turn down more resources for the Canadian military, but what about search and rescue? Where does that line up? It is a priority issue that we debate in the House, and unfortunately, every time we try to debate it, the debate gets shortened.

There are some good, concrete measures within the budget and within other pieces of legislation. There, I admit it.

Some are way too modest to make a difference. The CLC credited the government by saying it was a modest increase in the guaranteed income supplement for our most vulnerable seniors. Of course it is a modest one. It could have been doubled. Numbers from many think tanks and many corners of this country say that if we had doubled that amount of money, from a $300 million to a $700 million investment, it could have brought many more people above that poverty line.

Let us bear in mind that a lot of people in my area depend on the government for their sole source of income: a combination of CPP, old age security and the guaranteed income supplement. These are people who have larger homes, and that is the only income they have. Winter is coming, and, as we all know, oil is not particularly cheap these days, and has not been for the past five to 10 years.

I would look at this debate as a way of saying yes to this and more of that. Instead of a vote of no, it is a question of saying that the government can do a lot better. The people demand of not only the government but of us as individual MPs that we reflect the opinions of our ridings that it can be done better.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:35 p.m.
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Liberal

Scott Andrews Liberal Avalon, NL

Mr. Speaker, my colleague from Newfoundland talks about how the government gives us this and takes it away from us here.

It is quite true. I get a lot of inquiries from seniors. The government gives them an increase on their CPP in January, and then it claws it back on their GIS in July.

The Conservatives think they are doing great things for seniors, yet seniors are not getting the money they deserve. I wonder if the member would like to comment on that.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:35 p.m.
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Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, one of the things the member talks about, and we get a lot of calls about this, is that when there is that modest increase in CPP, there is a decrease in the old age security. We have to look at this.

Another example is that a lot of seniors out there will take money out of their RRSPs. When they do that, what ends up happening is a decrease in their old age security, their basic income from the government, which they have invested in for the past 40 years of their lives. Therefore, the RRSP is not the vehicle they wanted it to be. The investment that was there is no longer there, simply because of government regulation.

When it comes to pension security, my hon. colleague is right: it is a lot of giving and taking back. That can be fixed by having the discussion here and over the next three years.

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:40 p.m.
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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I would like to further elaborate on that exact point of the government giving with one hand and taking back with the other hand.

We are all aware that in January the government is going to increase payroll taxes by 5.6%. Any small business operator in this country fully understands that payroll taxes are job-killing taxes. The government is going to introduce that increase, but it is saying in the budget is that it is going to give it back with the other hand. It is going to have a hiring credit for small business to a maximum of $1,000. That credit is going to be taxable. CRA has said it is going to tax it.

Up front there is going to be the additional payroll tax, and there is going to be this other tax credit, but it is going to be taken back. The government is sort of taking it back twice. It is unprecedented for the government to be taking the money back twice, but the government will stand up, take a bow and pat itself on the back for all the great things that it does.

Does my colleague see that it is imperative that we as an opposition stand up and make Canadians aware that there is a shell game going on over there that has never been seen before in this country? It is smoke and mirrors about the help that is on its way. The government is taking it back with the other hand.

Does my colleague see that we have to take this message to Canadians?

Keeping Canada's Economy and Jobs Growing ActGovernment Orders

October 6th, 2011 / 1:40 p.m.
See context

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, I think the member is a little frustrated, as we all are.

I would have to say that in this particular situation the member is right. In some cases the government will actually take it back twice, only to provide a benefit in the future, so it goes here, it goes there. It is here and there. It is like the Cirque du Soleil of fiscal policy. It goes up and it goes down, and it never stops.

Unfortunately, that is the problem of the salesmanship in all these boutique tax credits out there. The problem is that the most vulnerable are not going to be assisted by it, even though the government says that they will be.

It is a government numbers games, saying x numbers of people will actually benefit from this particular tax cut, but in fact they are not the most vulnerable, as the government claims, and unfortunately this little shell game, as my hon. colleague points out, will continue on other measures. It is like going to the store and seeing what we want in the window, but by the time we get to the cash register, it is an entirely different piece of policy. That is unfortunate.