Bill C-59 (Historical)

Economic Action Plan 2015 Act, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on April 21, 2015 and other measures

Part 1 implements income tax measures and related measures proposed or referenced in the April 21, 2015 budget. In particular, it
(a) reduces the required minimum amount that must be withdrawn annually from a registered retirement income fund, a variable benefit money purchase registered pension plan or a pooled registered pension plan;
(b) ensures that amounts received on account of the new critical injury benefit and the new family caregiver relief benefit under the Canadian Forces Members and Veterans Re-establishment and Compensation Act are exempt from income tax;
(c) decreases the small business tax rate and makes consequential adjustments to the dividend gross-up factor and dividend tax credit;
(d) increases the lifetime capital gains exemption to $1 million for qualified farm and fishing properties;
(e) introduces the home accessibility tax credit;
(f) extends, for one year, the mineral exploration tax credit for flow-through share investors;
(g) extends, for five years, the tax deferral regime that applies to patronage dividends paid to members by an eligible agricultural cooperative in the form of eligible shares;
(h) extends until the end of 2018 the temporary measure that allows certain family members to open a registered disability savings plan for an adult individual who might not be able to enter into a contract;
(i) permits certain foreign charitable foundations to be registered as qualified donees;
(j) increases the annual contribution limit for tax-free savings accounts to $10,000;
(k) creates a new quarterly remitter category for certain small new employers; and
(l) provides an accelerated capital cost allowance for investment in machinery and equipment used in manufacturing and processing.
Part 2 implements various measures for families.
Division 1 of Part 2 implements the income tax measures announced on October 30, 2014. It amends the Income Tax Act to increase the maximum annual amounts deductible for child care expenses, to repeal the child tax credit and to introduce the family tax cut credit that is modified to include transferred education-related amounts in the calculation of that credit as announced in the April 21, 2015 budget.
Division 2 of Part 2 amends the Universal Child Care Benefit Act to, effective January 1, 2015, enhance the universal child care benefit by providing $160 per month for children under six years of age and by providing a new benefit of $60 per month for children six years of age or older but under 18 years of age.
It also amends the Children’s Special Allowances Act to, effective January 1, 2015, increase the special allowance supplement for children under six years of age from $100 to $160 per month and introduce a special allowance supplement in the amount of $60 per month for children six years of age or older but under 18 years of age.
Part 3 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 3 enacts the Federal Balanced Budget Act. That Act provides for certain measures that are to apply in the case of a projected or recorded deficit. It also provides for the appearance of the Minister of Finance before a House of Commons committee to explain the reasons for the deficit and present a plan for a return to balanced budgets.
Division 2 of Part 3 enacts the Prevention of Terrorist Travel Act in order to establish a mechanism to protect information in respect of judicial proceedings in relation to decisions made by the designated minister under the Canadian Passport Order to prevent the commission of a terrorism offence or for the purposes of the national security of Canada or a foreign country or state. It also makes a related amendment to the Canada Evidence Act.
Division 3 of Part 3 amends the Industrial Design Act, the Patent Act and the Trade-marks Act to, among other things, provide for extensions of time limits in unforeseen circumstances and provide the authority to make regulations respecting the correction of obvious errors. It also amends the Patent Act and the Trade-marks Act to protect communications between patent or trade-mark agents and their clients in the same way as communications that are subject to solicitor-client privilege.
Division 4 of Part 3 amends the Canada Labour Code to increase the maximum amount of compassionate care leave to 28 weeks and to extend to 52 weeks the period within which that leave may be taken. It also amends the Employment Insurance Act to, among other things, increase to 26 the maximum number of weeks of compassionate care benefits and to extend to 52 weeks the period within which those benefits may be paid.
Division 5 of Part 3 amends the Copyright Act to extend the term of copyright protection for a published sound recording and a performer’s performance fixed in a published sound recording from 50 years to 70 years after publication. However, the term is capped at 100 years after the first fixation of, respectively, the sound recording or the performer’s performance in a sound recording.
Division 6 of Part 3 amends the Export Development Act to add a development finance function to the current mandate of Export Development Canada (EDC), which will enable EDC to provide development financing and other forms of development support in a manner consistent with Canada’s international development priorities. The amendments also provide that the Minister for International Trade is to consult the Minister for International Development on matters related to EDC’s development finance function.
Division 7 of Part 3 amends the Canada Labour Code in order to, among other things, provide that Parts II and III of that Act apply to persons who are not employees but who perform for employers activities whose primary purpose is to enable those persons to acquire knowledge or experience, set out circumstances in which Part III of that Act does not apply to those persons and provide for regulations to be made to apply and adapt any provision of that Part to them.
Division 8 of Part 3 amends the Members of Parliament Retiring Allowances Act to, among other things, provide that the Chief Actuary is not permitted to distinguish between members of either House of Parliament when fixing contribution rates under that Act.
Division 9 of Part 3 amends the National Energy Board Act to extend the maximum duration of licences for the exportation of natural gas that are issued under that Act.
Division 10 of Part 3 amends the Parliament of Canada Act to establish an office to be called the Parliamentary Protective Service, which is to be responsible for all matters with respect to physical security throughout the parliamentary precinct and Parliament Hill and is to be under the responsibility of the Speaker of the Senate and the Speaker of the House of Commons. The Division provides that the Speakers of the two Houses of Parliament and the Minister of Public Safety and Emergency Preparedness must enter into an arrangement to have the Royal Canadian Mounted Police provide physical security services throughout that precinct and Parliament Hill. It also makes consequential amendments to other Acts.
Division 11 of Part 3 amends the definition “insured participant” in the Employment Insurance Act to extend eligibility for assistance under employment benefits under Part II of that Act, while providing that the definition as it reads before that Division comes into force may continue to apply for the purposes of an agreement with a government under section 63 of that Act that is entered into after that Division comes into force. It also contains transitional provisions and makes consequential amendments.
Division 12 of Part 3 amends the Canada Small Business Financing Act to modify the definition “small business” in order to increase the maximum amount of estimated gross annual revenue referred to in that definition. It also amends provisions of that Act that relate to eligibility criteria for borrowers for the purpose of financing the purchase or improvement of real property or immovables, in order to increase the maximum outstanding loan amount.
Division 13 of Part 3 amends the Personal Information Protection and Electronic Documents Act to extend the application of that Act to organizations set out in Schedule 4 in respect of personal information described in that Schedule.
Division 14 of Part 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to require the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to provincial securities regulators in certain circumstances.
Division 15 of Part 3 amends the Immigration and Refugee Protection Act to
(a) clarify and expand the application of certain provisions requiring the collection of biometric information so that those requirements apply not only to applications for a temporary resident visa, work permit or study permit but may also apply to other types of applications, claims and requests made under that Act that are specified in the regulations; and
(b) authorize the Minister of Citizenship and Immigration and the Minister of Public Safety and Emergency Preparedness to administer that Act using electronic means, including by allowing the making of an automated decision and by requiring the making of an application, request or claim, the submitting of documents or the providing of information, using electronic means.
Division 16 of Part 3 amends the First Nations Fiscal Management Act to accelerate and streamline participation in the scheme established under that Act, reduce the regulatory burden on participating first nations and strengthen the confidence of capital markets and investors in respect of that scheme.
Division 17 of Part 3 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to
(a) add a purpose statement to that Act;
(b) improve the transition process of Canadian Forces members and veterans to civilian life by allowing the Minister of Veterans Affairs to make decisions in respect of applications made by those members for services, assistance and compensation under that Act before their release from the Canadian Forces and to provide members and veterans with information and guidance before and after their release;
(c) establish the retirement income security benefit to provide eligible veterans and survivors with a continued financial benefit after the age of 65 years;
(d) establish the critical injury benefit to provide eligible Canadian Forces members and veterans with lump-sum compensation for severe, sudden and traumatic injuries or acute diseases that are service related, regardless of whether they result in permanent disability; and
(e) establish the family caregiver relief benefit to provide eligible veterans who require a high level of ongoing care from an informal caregiver with an annual grant to recognize that caregiver’s support.
The Division also amends the Veterans Review and Appeal Board Act as a consequence of the establishment of the critical injury benefit.
Division 18 of Part 3 amends the Ending the Long-gun Registry Act to, among other things, provide that the Access to Information Act and the Privacy Act do not apply with respect to records and copies of records that are to be destroyed in accordance with the Ending the Long-gun Registry Act. The non-application of the Access to Information Act and the Privacy Act is retroactive to October 25, 2011, the day on which the Ending the Long-gun Registry Act was introduced into Parliament.
Division 19 of Part 3 amends the Trust and Loan Companies Act, the Bank Act, the Insurance Companies Act and the Cooperative Credit Associations Act to modernize, clarify and enhance the protection of prescribed supervisory information that relates to federally regulated financial institutions.
Division 20 of Part 3 authorizes the Treasury Board to establish and modify, despite the Public Service Labour Relations Act, terms and conditions of employment related to the sick leave of employees who are employed in the core public administration.
It also authorizes the Treasury Board to establish and modify, despite that Act, a short-term disability program, and it requires the Treasury Board to establish a committee to make joint recommendations regarding any modifications to that program.
Finally, it authorizes the Treasury Board to modify, despite that Act, the existing public service long-term disability programs in respect of the period during which employees are not entitled to receive benefits.

Economic Action Plan 2015 Act, No. 1

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I appreciate those comments. The government unilaterally made that change in the funding formula for health care, which the Parliamentary Budget Officer estimated would cost the health care system $36 billion.

My leader has made it very clear that when we are elected in October 2015, we will return to the formula that was used before. We will ensure that in provinces like mine, where the population is not increasing, but is in fact aging, changes to the formula will be made to ensure that they will not be disadvantaged. We will recognize the need for greater resources because of an aging demographic.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, my colleague is very concerned about increasing taxes to pay for all the programs that his party would like to implement, but could he at least give me the assurance that, on these two measures, he would support our budget?

First, is the reduction of business taxes down to 9%. This would result in savings of over $36,000 for a company that is earning $500,000. It would be great to be able to plough that back into the company and produce greater productivity. Would he at least support that one?

If I had time, I would ask him another question.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, it is laughable when members on the government side talk about balanced budgets. They talk about living within one's means when we know they have run up deficits in our country at a level not seen in recent memory, to the point now where we have a debt in the country of over $140 billion.

The Conservatives have done two things: first, they have continued to spend like crazy; and second, they have cut back on our revenue sources. They simply cannot talk about being prudent with taxpayer money.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

): Mr. Speaker, first I would like to thank the hon. member for Dartmouth—Cole Harbour for generously sharing his precious speaking time with me.

As my Nova Scotian colleague pointed out so well, we are debating a very large omnibus bill, even though it is smaller than its predecessors. This morning, sadly, the Conservative government once again imposed closure through a time allocation motion in order to put a limit on debate. Thus, many of my colleagues who would have liked to speak on this budget implementation bill, which has many complex ramifications, will not be able to do so because they have been refused the right to speak for their constituents.

In my speech on the budget several weeks ago I attacked the finance minister's bill because it was very pretentious to try to impose a balanced budget act. It is pure comedy. I have studied the clauses relating to this balanced budget act; I have them here. I do not understand how a single Conservative member of this House can extol the merits of this part of the omnibus bill.

Had it been in force for the past seven years, the Conservative cabinet would have had to pay huge sums of money as a result of its intentional, unilateral decisions to reduce taxes on the richest and biggest businesses in our country.

The most reliable institutions estimate the shortfall caused by all the Conservative measures at tens of billions of dollars per year. It was no accident that the government found itself with a record-breaking operating deficit in one budget in the past seven years. It was the government's will and its poor decisions that created a whopping deficit a few years ago. We can see the number of years it took to return to what the Conservatives call a balanced budget, but what is really sleight of hand and a shameful diversion of funds.

My colleague from Dartmouth—Cole Harbour did well to point out, among other things, a further misappropriation of money from the employment insurance fund, amounting to about $2 billion.

He could also have talked about the contingency fund, which serves as insurance for the Government of Canada in the event of a catastrophe or some major disaster that affects Canadians directly, so that the government can provide support to the provinces and municipalities affected.

It is not very surprising that so many seats were won by the NDP in Calgary during the provincial election in Alberta, because this city had been flooded so disastrously. If Calgary were to experience a similar disaster this summer, what would the government do? How would the Conservatives manage after taking all the money out of this fund, which is so essential in the event of a catastrophe?

The Conservatives boast repeatedly about being good managers. It is a myth they are trying to spread by spending millions of dollars on extremely partisan advertising paid for out of the public purse. Unfortunately, as the facts show, the emperor is not wearing any clothes. That is the reality.

Over the past nine years, we have no doubt had the government that has been the worst manager. For months it denied the existence of an economic crisis on which everyone agreed, including all the opposition parties. The NDP had a ringside seat to lobby the government and say that we had to take action to deal with the crisis before us, a crisis which came in large part from the United States. Our American friends suffered enormously, but the government turned a deaf ear. Unfortunately, the late minister of finance, Jim Flaherty, refused to see reality, and with the complicity of the Prime Minister, resisted for months before finally taking action, under pressure from experts and the opposition parties.

This worn-out government's record over the past nine years is extraordinarily bad. It inherited a budget surplus. However it must be said—and there is nothing for the Liberals to be proud of in this—that the surplus was built in large part by depriving the provinces of legitimate transfer payments under the federal contract that had been in place for decades and by making deep cuts in transfers to individuals. The recipe that the Conservatives are using by making giving large corporations huge cuts has also been used by the Liberals. It is very interesting to see that after borrowing and stealing ideas from the NDP for years, the Liberals have now changed their target and are stealing many of the Conservatives’ ideas. The latest example is, of course, the lacklustre plan presented by the member for Papineau, who is trying to win the race of who is going to give the most money to the richest families, such as his own family and the Prime Minister’s. I have not been able to figure out who will win this race, the Conservatives or the Liberals. Of course, I will let them run after the richest people in our society to try to grab their votes.

The concrete reality facing the middle class is that it is suffering from stagnating incomes despite the huge increase in the cost of living, which is forcing people to borrow heavily. We have heard many warnings about the huge debt loads that Canadian households are taking on. I have the immense privilege of serving on the Standing Committee on Finance. I did so in 2013 and I have been serving again since January of this year. I remember the concerns that the chief economist for the TD Bank, Mr. Alexander, very clearly expressed during our study of income inequality. He said that the household debt situation was very troubling for the Canadian economy and that it was an immediate concern. If you look at the macroeconomic data, Canada has nothing to brag about. Despite our wealth of natural resources, our extraordinary human capital and our capacity for innovation, Canada's gross domestic product has stagnated and has been very low. My colleague and immediate neighbour is quite right: our trade balance is a disaster and in a substantial deficit. Maybe this is the Conservative government's new strategy to help developing countries around the world, but for the cost, they should be ashamed for wasting billions of Canadian dollars like that.

In closing, we have a worn-out, tired government. Canadians are really going to have to ask themselves if they want to replace an old horse that is on its last legs with another old horse that already proved its incompetence for four terms about 10 years ago.

People will have some important decisions to make, and the countdown has begun.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I want to thank my colleague for his speech. I have very high regard for him. We have worked across party lines on different issues, and I certainly respect him highly.

I have a question on the first part of his speech. He was critical of our government for spending into deficit. In 2008 and 2009, I recall very clearly that when we decided to put some stimulus funding in place to stimulate the manufacturing sector and to create better infrastructure in our communities not only the NDP but the Liberals as well encouraged us to spend more. They said that we were not doing enough. How can one continue to spend more and more and not have the problem he is accusing us of now of having spent too much?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to thank my colleague for his question.

I am going to point out some good things about the budget implementation bill. We are pleased that the government has borrowed ideas. It did not steal them; there is no copyright on our ideas. I would like to congratulate the Conservative government for borrowing our idea of lowering taxes for small business and also keeping the accelerated capital cost allowance for small business. I would like to thank the government.

Unfortunately, as is usually the case—and the member will acknowledge it—these worthwhile measures that we could have supported on a stand-alone basis are buried in a host of other measures, including the theft of public servants' right to negotiate sick leave. That is shameful. It is clearly a breach of a constitutional right. This government will lose in court once again before losing for the last time this fall on October 19.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member put the challenge out to Canadians that they will be able to to make a decision. I concur. They will be able to make a decision. They will be able to do a comparison. They will be able to compare this government to the Liberal governments of Paul Martin or Jean Chrétien, when we saw consistently balanced budgets, trade surpluses, and economic activity that generated hundreds of thousands, if not millions, of real jobs. There was beneficial economic growth in all 10 provinces and our territories.

When we talk about health care, the record high amounts in health care spending we have today are because of a Liberal government agreement called the health care accord.

Virtually on every front there is a reason for Canadians to look at the Liberal Party and say that it is a viable alternative.

We have our current leader now focusing attention on the middle class. Prior to the current leader of the Liberal Party being elected leader, the words “middle class” were rarely used here. It has only been since he was elected leader that all the other parties are now jumping on board saying that they too want to help out the middle class. However, the leader of the Liberal Party has consistently been advocating for it.

This is something we believe Canadians are going to tune in to come October 19 and they will recognize and reward us.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to thank my colleague from Winnipeg North for his question, or rather his comment, because in the end he did not really ask a question.

I will let the member—like his leader, the member for Papineau—race with the Conservatives to put as much money as possible in the pockets of the wealthy.

That said, I will help him nonetheless. I have his email address and I will send him a lovely table that shows the impact of the decisions made by the Chrétien and Martin governments on the budgets of all the Canadian provinces. Paul Martin was minister of finance at the time. We clearly see the line drop off sharply and then all the provinces post huge operating deficits. It was really difficult for the provinces to recover.

In those days, the PQ government in Quebec had negotiated terrible sacrifices from Quebeckers. We have not recovered from the shortfall of funds, especially in the Quebec health system.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I am honoured to rise in the House today to speak about some of the key provisions of the economic action plan, 2015, and to support its implementation with Bill C-59.

I will be sharing my time with the hon. member for Kitchener Centre.

On April 21, our Minister of Finance delivered a balanced budget that shows strong support for seniors and families, encourages growth, supports our business and manufacturing sectors, and focuses on the security and prosperity of our great nation. Today I would like to speak to those elements that stand out for me and especially to the constituents of Kitchener—Conestoga, whom I am so humbled and honoured to represent.

As a long-time supporter of and collaborator with the Mental Health Commission of Canada, I was beyond proud to see economic action plan 2015 announce a renewal of the Mental Health Commission's mandate, starting in 2017-18, so that the commission can continue its important work of promoting mental health in Canada and fostering change in the delivery of mental health services, giving specific attention to suicide prevention.

The Mental Health Commission has achieved a number of important milestones since its creation in 2007, including creating a national mental health strategy, developing a national anti-stigma initiative to help reduce discrimination faced by Canadians living with mental illness, and establishing a knowledge exchange centre as a source of information for governments, stakeholders, and the public.

I am proud to have collaborated with the Mental Health Commission of Canada on numerous occasions, and I am hopeful for what the future holds for mental health initiatives and suicide prevention with this 10-year extension. I know that it is eager to continue its work across the country and to implement new programs to help youth, veterans, and all Canadians.

The Waterloo Region is home to organizations such as the Waterloo Region Suicide Prevention Council, which works tirelessly with partnering organizations, professionals, and the community to help those struggling with mental health issues.

I have said in the past that the conversation about mental health is just as important as the legislation, and I know that local groups in my riding would benefit from the ability to continue their work on mental health issues and suicide prevention efforts.

All of these efforts are very effective in getting important conversations out in the open, thereby reducing stigma and bringing hope. Hope is what this is about. I have said on many occasions that hope is the oxygen of the human spirit. Without it, the spirit dies. While the budget implementation act is about numbers, dollars, and cents, at its core it is a message of hope for Canadians.

As the Mental Health Commission of Canada stated, “This is wonderful news for the mental health community.... Together, we have advocated for change. And together, we are succeeding”.

When we put a strong emphasis on mental health as a key priority for our country, we all succeed.

I was honoured to be co-founder of the Parliamentary Committee on Palliative and Compassionate Care and to have served as its co-chair since 2010. We worked across party lines to promote awareness of deficiencies in palliative and compassionate care in Canada. In 2011, we released a landmark report entitled “Not to be Forgotten”, reporting on the state of palliative care and suicide prevention, which was endorsed by key organizations, including the Canadian Medical Association, among many others.

One of the recommendations arising from our report was to expand the provisions of the employment insurance-based compassionate care benefit to 26 weeks and to ensure its flexibility to allow partial weeks to be covered, allowing caregiver leave for episodic care.

Through the employment insurance program, compassionate care benefits provide financial assistance to people who have to be away from work temporarily to care for a family member who is gravely ill. Canadians should not have to choose between keeping their jobs and caring for their families.

I have always advocated for better availability of care for our society's most vulnerable. The new extension of the compassionate care benefit under EI from six weeks to six months, allowing those taking leave to care for their families, will make a significant difference in the lives of many families who want to care for their loved ones in times of severe health challenges.

I was thrilled to see that the parliamentary committee's palliative and compassionate care report was actually quoted in the budget along with this exciting initiative. As the report states:

Family and friends have been described as the invisible backbone of the Canadian healthcare system.

I am proud of our government's achievements in supporting families.

Speaking of families, there has been tremendous support in my own riding and across the country for the new credits and tax cuts for families. Let me list just a few of them: the doubling of the children's fitness tax credit to $1,000; the family tax cut, saving couples with children up to $2,000 through income splitting; an enhanced universal child care benefit, providing up to $1,920 per year for each child under six and up to $720 per year for each child between the ages of six and 17; and, finally, a $1,000 increase in the maximum claim amount for the child care expenses deduction. These measures would support Canadian families and put money back into the pockets of all families with children.

There is even more good news in the budget to help families and communities prosper. I am particularly pleased with the new initiatives to help seniors and persons with disabilities.

As a result of actions taken to date by the government, seniors and pensioners are receiving about $3 billion in additional annual targeted tax relief. We have doubled the $2,000 maximum amount of income eligible for the pension income credit. We have introduced pension income splitting, which the opposition parties say they would take away. Actually, 2.2 million Canadians take advantage of pension income splitting. I have heard from dozens of pensioners, seniors in my riding, who have told me what a big difference this makes for them.

This budget also supports seniors by reducing the minimum withdrawal factors for registered retirement income funds, RRIFs. This measure, in conjunction with the increase in the TFSA limit to $10,000, would support the retirement income needs of seniors by providing them with increased flexibility to manage their own savings in a tax-efficient manner.

I am also proud of the new home accessibility tax credit to help seniors and persons with disabilities who may face special challenges related to gaining access to their own homes or being mobile or functional within their own homes. Making improvements in their homes can be costly, which is why this new permanent tax credit would apply on up to $10,000 of eligible home renovation expenses per year, providing up to $1,500 in tax relief. These improvements would help ensure that seniors and persons with disabilities could live healthy, independent lives in the comfort of their own homes.

Allowing families to make arrangements to care for their family members through EI compassionate care benefits, helping seniors to have more flexibility with their retirement funds, and introducing new tax credits to help with mobility and accessibility are all concrete efforts to help all Canadian seniors.

As Canada's population ages, age-related cognitive impairment and chronic conditions are sadly becoming more prevalent. The burden on families is vast and continues to grow. Research on aging and brain health issues, such as dementia, can lead to better diagnoses and more effective treatments, which will improve Canadians' quality of life. That is why I am hopeful that the establishment of the Canadian centre for aging and brain health innovation will support new research and the development of products and services to support brain health and healthy aging. This investment would build on the government's strong record of investment in research and support for Canadians suffering from dementia and other neurodegenerative diseases.

Since 2006, our government has cut taxes 180 times, reducing the overall tax burden to its lowest level in 50 years. Bill C-59 would continue our record of reducing taxes with measures such as reducing the small business tax rate from 11% to 9% by 2019, saving Canadian small businesses billions of dollars, and increasing the tax-free savings account annual contribution limit to help make it easier for all Canadians to save for their futures.

While the benefits to all Canadians included in this budget are important, it is crucial to remember that as promised, this is a balanced budget. Canadians understand the importance of living within their means, and they expect their governments to do the same. Balanced budgets keep taxes low and also ensure that government services like health care, education, and money for bridges, roads, clean water, and sewage treatments are sustained over the long haul for Canadians.

I am proud of this balanced budget and the benefits it would bring to Canadians, especially families, seniors and, finally, the most vulnerable among us.

[François Lapointe, NDP, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, my Conservative colleague used the word “family” a lot in his speech, and he talked about all the amazing things his party is doing for Canadian families.

I received a document from some very competent people about the universal child care benefit for middle-class households, meaning a household that earns, on average, between $44,000 and $83,000. Once you receive the $720 benefit, if you subtract the provincial or federal tax you will have to pay, since the benefit is taxable, and if you take into account the loss of the over $2,000 child tax credit that was cut in this budget, you will be left with about $150 in your pocket. From $720 you will get just $150. That is so little that accountants are calling their clients to tell them to keep the money in the bank because they will have to pay taxes on it later as a result of the government's decisions.

The Conservatives have a funny way of helping families by giving with one hand and taking almost all of it away with the other hand, all in the same year. It is rather strange.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I did not hear a question, but what this shows is the clear difference between our party and the NDP and the Liberal Party in how we help families.

The NDP and the Liberals would create a big institutional child care system, which would be mandated on all children, including those who do not even use it in rural areas and who would not be able to access a child care system from a 9 to 5 position because they would not be able to get there. They would like to tax every Canadian in Canada to pay for a system and pay for a bureaucracy that would not help every child and every family.

I am proud that the system we have in place with the universal child care benefit will help every family with children between the ages of 0 and 17. That is something of which we can be proud.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, first, I have an observation. I am always amused to hear every Conservative MP talk about how there are tons of people in their riding who are benefiting from income splitting. If we added it all up, we would think that the majority of Canadians would get benefits from income splitting. I have news, and here are the facts. Fewer than 15% of Canadians will benefit from it.

I would like to say that I have great respect for my colleague, particularly for his concern for mental illness, which I share, and he has done great work on that. He brought out the concept of hope, which is very important.

However, having brought it up, what hope is he offering to the 14% of young people who are looking for something to do in their lives but cannot find jobs? What hope is he offering to veterans who have, frankly, given up on the government? What hope is he offering to the homeless, and there are many in my riding, who not only have no home, but are suffering with addictions and have mental health problems?

What hope would this budget offer them?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, I hope my colleague was listening to my comments, because I clearly outlined many areas of hope within my comments. One area that I was not able to mention, because of time, was the area of job creation, of our economy and of small business.

We know that small business is our economic engine. By reducing taxes on small businesses, we are allowing them to create jobs for those young people who currently are unable to get a job. By reducing the taxes on small business from the current 11% to 9%, for a company that is earning $500,000, this will mean a savings of over $36,000 per year. Businesses can plow that money back into their companies and create more jobs for youth and for all Canadians.

However, we cannot create more jobs with high taxes, high spending and borrowing more money, which the NDP and the Liberals would have us do.

[Stephen Woodworth, Conservative, Kitchener Centre, ON]

Mr. Speaker, it is my pleasure to have the opportunity to comment on another great budget from a strong, stable, majority Conservative government.

The budget has been described in my community as centrist, cautious, keeping old promises as well as making new ones, and at times surprisingly compassionate.

The first budget of Minister of Finance, the first balanced one since the great recession of 2008, provides substantial benefits to many Canadians. The budget helps seniors by giving them more flexibility and withdrawals from retirement income funds, and a new tax credit to make homes more accessible. Seniors will also benefit from the new $10,000 contribution limit for a tax-free savings account, as well as new help for people caring for seriously ill relatives.

Families with children will receive improvements for the universal child care benefit and the child care expense deduction, in addition to the previously announced family tax cut. There is help for post-secondary students seeking loans through the Canada student loans program.

To stimulate the economy, the budget offers tax breaks for small business, investment incentives to manufacturers and new infrastructure spending. There will also be more money spent on security measures, both in Canada and abroad.

Despite losing $6 billion in anticipated revenue due to plunging oil prices, the government squeezed out a small surplus in this budget. Now the question is how can we boost the economy? I can tell the House, further deficits are not the answer. No one knows how long such deficits would have to continue, meanwhile increasing debt charges continue to drain economic resources.

The Conservative government promised to balance the budget, and it did. We promised to save money for taxpayers, and we have. We said that we would improve the quality of the lives of people, and we did. We said that we would protect Canadians from security threats and defend democratic values against totalitarian states and terrorist groups, and that is exactly what we are doing. Promises made; promises kept.

Economic action plan 2015 emphasizes supporting Canada's families through tax relief and benefits. Here are some important measures: increasing the tax-free savings account contribution limit to $10,000; introducing the family tax cut to allow a higher income spouse to transfer taxable income to his spouse in a lower tax bracket; tax relief of up to $2,000 per family for couples with children under the age of 18; increasing and expanding the universal child care benefit to provide every family in Canada with $2,000 per year per child under the age of six, and $720 per year per child between the ages of 6 and 17; increasing the child care expense deduction limit by $1,000; doubling the child fitness tax credit to $1,000 and making it refundable; renewing the mandate of the Canadian Mental Health Commission for another 10 years to help tackle mental health issues that affect some Canadian families; and enhancing support for child advocacy centres across Canada to deliver community based programs helping children and families recover from victimization.

Over 11 million Canadians are currently earning tax-free income in their tax-free savings accounts, saving for a down payment on a home, for their kids education or for their retirement. In 2011, the Prime Minister promised to double the contribution limit of the tax-free savings account once the budget was balanced, another promise kept.

The opposition threatens to reverse this increase, claiming it only benefits the rich. However, the Department of Finance has shown that the vast majority of maximum contributors are low to middle-income earners, and many are seniors. It is little wonder that the Canadian Association of Retired Persons strongly endorses the increases to the TSFA limit.

Here are some interesting statistics that contradict the assertion that such measures only benefit the very wealthy. Almost 60% of TSFA maximisers make less than $60,000 per annum. Just under half of TSFA maximisers, 46% of them are seniors. Overall, 80% of the 11 million Canadians who hold tax-free savings accounts have incomes of less than $80,000, and 50% have incomes less than $42,000. All of them will benefit from an increase in the limit.

These measures do not involve taking money from the government, as some oppositions members claim. These measures simply ensure that hard-working families across the country get to keep more of their own money.

The family tax cut will permit a higher-earning spouse to transfer taxable income to a lower tax bracket spouse. Tax relief is capped at $2,000 for couples with children under 18.

Now the opposition asserts that income splitting only benefits 15% of Canadian families, but two things are misleading about that assertion.

First, 15% of Canadian families represent approximately two million households. Any single tax measure that provides relief to two million households is extremely far-reaching. The NDP's proposed child care measure by contrast would benefit only half of this number of Canadians, and that does not even take into account the grandparents who will see the benefit of this in their children's families.

Beyond even that, the Parliamentary Budget Officer found that middle and middle-high income households would benefit most from income splitting. Most of the tax relief would be provided to middle-income families. More than one million families, representing 83% of those earning between $60,000 and $120,000, would qualify for the family tax cut.

Instead of calculating income on an individual basis, the family tax cut would provide moderate relief based on household income, widely accepted as the fairest measure of any family's resources. This is a question of fairness. Families with the same income should be taxed at the same rate. The current system forces some families, which are exactly equal to others, to pay significantly more in taxes, and that is simply unfair. The family tax cut would solve this problem.

Another important facet of economic action plan 2015 is its emphasis on manufacturing as a key engine for the Canadian economy, and this is good news for my residents of Kitchener Centre and Waterloo region. In this budget, the government has delivered an incentive for manufacturers, which provides them with an accelerated capital cost allowance to spur continued investment in required equipment. This measure alone is expected to reduce federal taxes for manufacturers in Ontario by $473 million over the period of 2016 to 2020.

The government's new economic action plan would create an automotive supplier innovation program to deliver $100 million worth of support over five years for automotive part suppliers. The government will also develop a national aerospace supplier development initiative, a made-in-Canada solution, working with industry and government stakeholders, to aid aerospace firms.

Manufacturing is also be assisted by the most ambitious pro-export plan in our country's history so Canadian businesses can pursue global opportunities. Since 2006, the Conservative government has concluded free trade agreements with 38 countries, compared to just five before taking office. Canadian exporters will soon have preferential access to more than half the global marketplace. Opening up new markets is just one of the many ways this government is fostering growth and job creation for Canadians.

As members can see, economic action plan 2015 builds on Conservative government strategies that have helped the Canadian economy emerge stronger and more quickly than any other G7 nation from the worst global recession in over 80 years. That is why every member of the House should support Bill C-59.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my colleague for his speech. I would like to pick his brain, seeing as he is a lawyer.

I would like to draw his attention to division 20 of the budget implementation bill. It creates completely new rules despite the Public Service Labour Relations Act. Authorized experts have indicated that there may be a risk of violating the Canadian Constitution, not to mention disrupting free and healthy negotiation.

As for division 18, which is about the Ending the Long-gun Registry Act, the Canadian Press reported that experts said this was rewriting history, plain and simple, and that they were very uncomfortable with the precedents this would set, considering that the Ending the Long-gun Registry Act is retroactive to the day it was introduced.

How comfortable is my lawyer colleague with this kind of legal approach?