Bill C-15 (Historical)

Budget Implementation Act, 2016, No. 1.

An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures

Part 1 implements certain income tax measures proposed in the March 22, 2016 budget by
(a) eliminating the education tax credit;
(b) eliminating the textbook tax credit;
(c) exempting from taxable income amounts received as rate assistance under the Ontario Electricity Support Program;
(d) maintaining the small business tax rate at 10.‍5% for the 2016 and subsequent taxation years and making consequential adjustments to the dividend gross-up factor and dividend tax credit;
(e) increasing the maximum deduction available under the northern residents deduction;
(f) eliminating the children’s arts tax credit;
(g) eliminating the family tax cut credit;
(h) replacing the Canada child tax benefit and universal child care benefit with the new Canada child benefit;
(i) eliminating the child fitness tax credit;
(j) introducing the school supplies tax credit;
(k) extending, for one year, the mineral exploration tax credit for flow-through share investors;
(l) restoring the labour-sponsored venture capital corporations tax credit for purchases of shares of provincially registered labour-sponsored venture capital corporations for the 2016 and subsequent taxation years; and
(m) introducing changes consequential to the introduction of the new 33% individual tax rate.
Part 1 implements other income tax measures confirmed in the March 22, 2016 budget by
(a) amending the anti-avoidance rules in the Income Tax Act that prevent the conversion of capital gains into tax-deductible intercorporate dividends;
(b) qualifying certain costs associated with undertaking environmental studies and community consultations as Canadian exploration expenses;
(c) ensuring that profits from the insurance of Canadian risks remain taxable in Canada;
(d) ensuring that the dividend rental arrangement rules under the Income Tax Act apply where there is a synthetic equity arrangement;
(e) providing specific tax rules in respect of the commercialization of the Canadian Wheat Board, including a tax deferral for eligible farmers;
(f) permitting registered charities and registered Canadian amateur athletic associations to hold limited partnership interests;
(g) providing an exemption to the withholding tax requirements for payments by qualifying non-resident employers to qualifying non-resident employees;
(h) limiting the circumstances in which the repeated failure to report income penalty will apply;
(i) permitting the sharing of taxpayer information within the Canada Revenue Agency to facilitate the collection of certain non-tax debts; and
(j) permitting the sharing of taxpayer information with the Office of the Chief Actuary.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 22, 2016 budget by
(a) adding insulin pens, insulin pen needles and intermittent urinary catheters to the list of GST/HST zero-rated medical and assistive devices;
(b) clarifying that GST/HST generally applies to supplies of purely cosmetic procedures provided by all suppliers, including registered charities;
(c) relieving tax to ensure that when a charity makes a taxable supply of property or services in exchange for a donation and an income tax receipt may be issued for a portion of the donation, only the value of the property or services supplied is subject to GST/HST;
(d) ensuring that interest earned in respect of certain deposits is not included in determining whether a person is considered to be a financial institution for GST/HST purposes; and
(e) clarifying the treatment of imported reinsurance services under the GST/HST imported supply rules for financial institutions.
Part 2 also implements other GST/HST measures confirmed in the March 22, 2016 budget by
(a) adding feminine hygiene products to the list of GST/HST zero-rated products; and
(b) permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.
Part 3 implements certain excise measures proposed in the March 22, 2016 budget by
(a) ensuring that excise tax relief for diesel fuel used as heating oil or to generate electricity is targeted to specific instances; and
(b) enhancing certain security and collection provisions in the Excise Act, 2001.
Part 3 also implements other excise measures confirmed in the March 22, 2016 budget by permitting the sharing of taxpayer information in respect of non-tax debts within the Canada Revenue Agency under certain federal and provincial government programs and in respect of certain programs where information sharing is currently permitted under the Income Tax Act.
Division 1 of Part 4 repeals the Federal Balanced Budget Act.
Division 2 of Part 4 amends the Canadian Forces Members and Veterans Re-establishment and Compensation Act to, among other things,
(a) replace “permanent impairment allowance” with “career impact allowance”;
(b) replace “totally and permanently incapacitated” with “diminished earning capacity”;
(c) increase the percentage in the formula used to calculate the earnings loss benefit;
(d) specify when a disability award becomes payable and clarify the formula used to calculate the amount of a disability award;
(e) increase the amounts of a disability award; and
(f) increase the amount of a death benefit.
In addition, it contains transitional provisions that provide, among other things, that the Minister of Veterans Affairs must pay, to a person who received a disability award or a death benefit under that Act before April 1, 2017, an amount that represents the increase in the amount of the disability award or the death benefit, as the case may be. It also makes consequential amendments to the Children of Deceased Veterans Education Assistance Act, the Pension Act and the Income Tax Act.
Division 3 of Part 4 amends the sunset provisions of certain Acts governing federal financial institutions to extend by two years, namely, from March 29, 2017 to March 29, 2019, the period during which those institutions may carry on business.
Division 4 of Part 4 amends the Bank Act to facilitate the continuance of local cooperative credit societies as federal credit unions by granting the Minister of Finance the authority to provide transitional procedural exemptions, as well as a loan guarantee.
Division 5 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things, broaden the Corporation’s powers to temporarily control or own a domestic systemically important bank and to convert certain shares and liabilities of such a bank into common shares.
It also amends the Bank Act to allow the designation of domestic systemically important banks by the Superintendent of Financial Institutions and to require such banks to maintain a minimum capacity to absorb losses.
Lastly, it makes consequential amendments to the Financial Administration Act, the Winding-up and Restructuring Act and the Payment Clearing and Settlement Act.
Division 6 of Part 4 amends the Office of the Superintendent of Financial Institutions Act to change the membership of the committee established under that Act so that the Chairperson of the Canada Deposit Insurance Corporation is replaced by that Corporation’s Chief Executive Officer. It also amends several Acts to replace references to that Chairperson with references to that Chief Executive Officer.
Division 7 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize an additional payment to be made to a territory, in order to take into account the amount of the territorial formula financing payment that would have been paid to that territory for the fiscal year beginning on April 1, 2016, if that amount had been determined using the recalculated amount determined to be the gross expenditure base for that fiscal year.
Division 8 of Part 4 amends the Financial Administration Act to restrict the circumstances in which the Governor in Council may authorize the borrowing of money without legislative approval.
Division 9 of Part 4 amends the Old Age Security Act to increase the single rate of the guaranteed income supplement for the lowest-income pensioners by up to $947 annually and to repeal section 2.‍2 of that Act, which increases the age of eligibility to receive a benefit.
Division 10 of Part 4 amends the Special Import Measures Act to provide that a finding by the President of the Canada Border Services Agency of an insignificant margin of dumping or an insignificant amount of subsidy in respect of goods imported into Canada will no longer result in the termination of a trade remedy investigation prior to the President’s preliminary determination. It also provides that expiry reviews may be initiated from a date that is closer to the expiry date of an anti-dumping or countervailing measure and makes amendments related to that new time period.
Division 11 of Part 4 amends the Pension Benefits Standards Act, 1985 to combine the authorities for bilateral agreements and multilateral agreements into one authority for federal-provincial agreements, and to clarify that federal-provincial agreements may permit the application of provincial legislation with respect to a pension plan.
Division 12 of Part 4 amends the Employment Insurance Act to, among other things,
(a) increase, until July 8, 2017, the maximum number of weeks for which benefits may be paid to certain claimants in certain regions;
(b) eliminate the category of claimants who are new entrants and re-entrants; and
(c) reduce to one week the length of the waiting period during which claimants are not entitled to benefits.
Division 13 of Part 4 amends the Canada Marine Act to allow the Minister of Canadian Heritage to make payments to Canada Place Corporation for certain celebrations.
Division 14 of Part 4 amends the Jobs, Growth and Long-term Prosperity Act to authorize the Minister of Infrastructure, Communities and Intergovernmental Affairs to acquire the shares of PPP Canada Inc. on behalf of Her Majesty in right of Canada. It also sets out that the appropriate Minister, as defined in the Financial Administration Act, holds those shares and authorizes that appropriate Minister to conduct, with the Governor in Council’s approval, certain transactions relating to PPP Canada Inc. Finally, it authorizes PPP Canada Inc. and its wholly-owned subsidiaries to sell, with the Governor in Council’s approval, their assets in certain circumstances.
Division 15 of Part 4 amends the Canada Foundation for Sustainable Development Technology Act to modify the process that leads to the Governor in Council’s appointment of persons to the board of directors of the Canada Foundation for Sustainable Development Technology by eliminating the role of the Minister of Natural Resources and the Minister of the Environment as well as the consultative role of the Minister of Industry from that process. It also amends the Budget Implementation Act, 2007 to provide that a sum may be paid out of the Consolidated Revenue Fund to the Foundation on the requisition of the Minister of Industry and to clarify the maximum amount of that sum.

Second Reading

[Seamus O'Regan, Liberal, St. John's South—Mount Pearl, NL]

Mr. Speaker, it is an honour for me to rise in the House today to speak to this important piece of legislation. March 22 was an important day for Canadians. When the Minister of Finance introduced budget 2016, the first glimmers of hope were restored to Canadians who for too long had been made to work too hard, but just could not seem to get ahead.

Middle-class families, vulnerable seniors, veterans, and indigenous people were all given hope for a more secure tomorrow and a brighter future.

The Canada child benefit, a simpler, fairer, and tax-free solution to child benefits, will deliver more money to nine in 10 Canadian families and end the practice of sending benefit cheques to millionaires. More importantly, it will lift 300,000 children out of poverty and give them the start they need.

The rollback of changes to the age of eligibility for old age security and the guaranteed income supplement, from age 67 to 65, will allow people who have worked their whole lives to get the income security they deserve when they retire without having to wait.

For veterans who have bravely dedicated their lives to the defence of our country, we will enhance services and benefits in light of their dedicated service. This will help those veterans who have become injured and disabled and aid all veterans in the transition to civilian life, an all-too-challenging feat for those who have experienced the trauma of war.

For indigenous people who have suffered for too long from neglect and failed policies, the budget provided a new beginning. A first step in the nation-to-nation relationship with the fastest-growing segment of the Canadian population, our investments will contribute to improving economic prosperity for them, and for this country.

Today, it is my honour to rise in this esteemed House to speak in favour of the budget implementation act no. 1, a piece of legislation that will move forward many of the provisions contained in the budget.

The BIA is about many of the things I have already spoken to, but it also takes critical action in some areas that are occasionally overlooked in the fog of budget day. Importantly, it implements key measures designed to ensure tax fairness and a strong financial sector in this country.

As a matter of principle, our government is committed to tax fairness. We believe fundamentally that all Canadians, individuals and corporations alike, must pay their fair share of taxes so that all Canadians can benefit in return.

Tax evasion and avoidance put strain on this principle. They negatively impact the revenue collected through taxes, in turn compromising the services offered to Canadians.

The budget implementation act contains important provisions to cut down on the people's ability to use increasingly sophisticated means to avoid paying their fair share. This is combined with the budget's increased funding to the Canada Revenue Agency to hire additional auditors and specialists to undertake better-quality investigative work and improve its ability to collect outstanding debts.

As well, this budget addresses unintended tax advantages that businesses and high-net-worth individuals may be able to obtain through sophisticated tax planning techniques involving private corporations.

These actions are consistent with the principles of fairness, economic efficiency, and responsible fiscal management.

The government will continue to identify and address tax planning schemes to ensure that the tax system operates as fairly and effectively as possible.

We need to know that the system is working as it should, to ensure the economy is working for everyone. This is a critical part of strong fiscal management. Strong fiscal management also depends on ensuring our financial sector remains competitive and efficient.

Canada's financial sector is world-class and has remained resilient and stable even in the face of the great recession and throughout the slow recovery. However, we must keep the financial sector strong, especially at a time when new market forces like digital currencies and rapidly changing global regulations are precipitating equally rapid change.

Canada's financial sector remains the envy of many countries around the world. This reputation was the result of hard work and prudent decision-making by financial institutions and by the actions of the federal government in the 1990s and by our regulators. We want to keep it that way.

To ensure that Canada continues to benefit from a strong financial sector, the government proposes to introduce a bail-in regime for Canada's largest financial institutions, which would promote financial stability and reinforce that bank shareholders and creditors are responsible for the bank's risks, not taxpayers.

In the highly unlikely event of a system bank failure, we want to ensure that Canadians will not be on the hook and that banks will convert their debt into equity rather than force the government to bail them out.

It is important to add that this provision would not hurt depositors, as all insured and uninsured deposits will remain protected.

The budget implementation act is a critical step on the path to a fairer and more prosperous Canada. It brings into effect much-needed relief for Canadian families, for vulnerable seniors, and for veterans. However, it also takes action to close tax loopholes that hurt all Canadians and to ensure that our financial institutions remain strong, so that Canadians can continue to rely on them in the years to come.

For these reasons, I would encourage all members to support it.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, I am really glad to hear that the hon. member praised the Conservative government's financial prudence in getting us through the recession of 2008-2009. If it were not for the prudent financial planning of that government, we may not have been able to come through that as one of the strongest economies in the G7, so I want to thank my colleague for highlighting our good work in the government we had.

We have heard a lot today about employment insurance and some of the benefits that will entail, but I ask the hon. member why those EI extensions would only be given to 12 specific areas across the country. Those 12 do not include Edmonton, which includes Nisku and Leduc, which is the heart and soul of Alberta's energy industry. They do not include southern Saskatchewan, also a very important oil and gas area where communities are feeling the pinch of the downturn.

Also, will something be done with For McMurray and what is going on there? Will there be some special concessions for that community as well?

[Seamus O'Regan, Liberal, St. John's South—Mount Pearl, NL]

Certainly, Mr. Speaker, the minister spoke to the situation in Fort McMurray this morning, about special measures the government will be taking to take that into account.

Before going any further, once again, to reflect on what is currently going on in Fort McMurray, I can tell hon. members, as somebody who grew up in what I would term to be the sub-Arctic, along the same latitude as Fort McMurray, in Goose Bay, Labrador, that at a very young age I was confronted with a forest fire that almost hit our community. We were awakened by the RCMP at 4 o'clock in the morning and told to evacuate our house because we would not see it again, because it would have been taken down by a forest fire that was literally licking the lips of the hills of North West River, Labrador, only some 40 or 50 kilometres away from where I grew up in Happy Valley—Goose Bay.

The night before, watching the sky lit up pink from the flames that were just beyond that hill, inhaling the smoke from that forest fire, knowing that feeling of having to choose what items we would take with us and what we would leave behind is a feeling I will never forget, even though I was only at the tender age of 13 or 14.

I feel with all my heart for what is going on for those people in Fort McMurray, having had first-hand experience, and I know that our government will work together with those members on the other side of the House to ensure that everything possible is done for what is looking right now to be one of the most cataclysmic natural catastrophes that our country has ever faced.

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Mr. Speaker, I know that we have recently had the opportunity to spend a week in our home constituencies, and budget 2016 and Bill C-15 contain some extremely positive measures that will benefit Canadians from coast to coast to coast, including Canada's largest-ever infrastructure program and the Canada child benefit, which will benefit nine out of 10 Canadian families.

I am wondering if the hon. member can share with this chamber what his constituents are saying about both Bill C-15 and budget 2016.

[Seamus O'Regan, Liberal, St. John's South—Mount Pearl, NL]

Mr. Speaker, like many new members of the House who were campaigning for the first time in order to enter this honourable House, I was struck by how our constituents spoke to us and the concerns they held. Certainly, their ability to find some stability in a world that is so rapidly changing, to find some financial security for their children, and for them to have the choice on how to spend limited resources on their families and their children was something that was brought up time and again.

I am very happy that the Canada child benefit will come into effect on Canada Day, July 1. People will be receiving their cheques and families will be able to determine how best to spend the benefit on themselves and their families.

I am a big believer in efficiencies. To take three separate, very disparate family benefits and turn them into one tangible cheque is one of the most tangible and most important parts of the budget. It is not just something we use at the end of the tax year, but a tangible benefit that Canadian families can feel, use, and spend throughout the year on their children to make better lives for themselves and their families.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Mr. Speaker, I am pleased to rise in the House to speak to Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.

I would like to begin by noting that I will be splitting my time with the member for Saskatoon West.

Budgets should reflect priorities, and the priorities of any government governing at this time in history ought to be the growing inequality in our country.

Over the last 30 years, we have seen the gap between the rich and everyone else grow. The richest 100 Canadians now hold as much wealth as the bottom 10 million combined. Just this week, Statistics Canada released a study that showed that over the last 30 years it has been getting harder and harder for Canadians to move up the income ladder, but it has been easier for the wealthy to hold on to that wealth.

This did not just happen. It is the result of decades of successive Liberal and Conservative governments that have chosen not to support the middle- and low-income Canadians in our country. This budget is sadly no different.

Early into the Liberal mandate, they prioritized the so-called middle-class tax cut. However, a study from the parliamentary budget officer proves the Liberal tax plan will give nothing to 60% of Canadians. The biggest breaks will go to the top 30% of income earners, and those making $200,000 or more will receive the maximum amount. This is on top of no action to help minimum wage workers earn a fair living.

Another broken promise to Canadians made by the Liberals in the campaign that we have now seen is not taking any action to close the stock option loophole for CEOs, a loophole that costs the public $800 million a year.

When we talk about the growing inequality in our country and the kind of crushing poverty we know to exist, I think many of our minds go to the experience of first nations. Let us talk about first nations youth. Half of all first nations children in Canada live in poverty. In Manitoba, my province, 62% of first nations children live below the poverty line.

What about this budget? We saw the Liberals choose not to live up to their promises to first nations children. This budget shortchanged first nations education by $230 million. Following a historic ruling by the Canadian Human Rights Tribunal, first nations child welfare saw $130 million less than was promised.

There is also no money for first nations health care, Jordan's principle, or mental health supports, while many isolated first nations, including communities in my own constituency, struggle with suicide crises.

We have also seen the Liberals choose to break their promise to invest in health care. After promising $3 billion over the next four years to help Canadians access high-quality home care, this budget has nothing.

We have also seen the way the Prime Minister, the self-appointed Minister of Youth, came up $170 million short on his commitment made to young Canadians. The millennial generation needs more than a selfie to help them grapple with the challenges they are facing: skyrocketing student debt, out-of-reach housing prices, and a labour market that is flooded with precarious, unstable, low-paying work.

Unfortunately, this is another missed opportunity by the Liberal government to reduce inequality.

When we look at the history of growing inequality in our country, we know that the 1990s, under successive Liberal governments, was the period of time in which the trend around inequality began to grow the fastest. We have heard from those who have studied that trend that one of the major contributors was the cuts to employment insurance.

On that note, let us look at the recent changes that were made to EI. The system left in place by the Conservatives was nothing less than devastated. However, let us be clear. The system the Conservatives inherited was already deeply troubled. The Liberals plundered countless billions of dollars, in fact $54 billion, from the EI fund for political purposes, and supervised the biggest and most thorough attack on our social safety net as of yet.

If the Liberals believe that the only reason the EI system is in shambles is due to the Conservatives' reforms, I recommend that they look into their own history and uncover the real reasons why a majority of Canadians who are out of work today are left without access to EI. In fact, regarding the changes implemented by Bill C-15, we can see that they do not go far enough.

We know that while some extensions were made, areas like Edmonton and southern Saskatchewan were completely left out of the government's relief measures. When we asked the government why, the reply was blunt and brutal. It was because of “cold, hard math”. Those words are certainly cold comfort to Canadian workers out of a job.

The cold, hard math rhetoric they are basing their policies on has apparently come out of thin air. When we have asked for references to studies and government reports, we have seen nothing. We call on the minister to correct this mistake and to include Edmonton and southern Saskatchewan in the targeted regions immediately.

The broader picture, though, is the failure that the regional thresholds have met in trying to achieve more fairness for the EI system. The regional thresholds have been described as inadequate by countless stakeholders. We in the NDP will continue to advocate for a universal 360-hour threshold that would be fair and adequate for all workers.

Canada's social safety net is broken. The government likes to place the blame squarely at the feet of the previous government, which certainly did its share of damage, but the Liberals should take a look in the mirror. What they are now framing as a victory for workers is actually a return to a difficult time that bears the scars of damage done to our social safety net under Chrétien and Martin.

I would like to talk about the term “social safety net”. What does that represent? In our current economic context, the professional lives of a growing number of workers are hanging by a thread. When that thread breaks, the social safety net can prevent people from crashing to the floor. When it works, the social safety net enables people to pick themselves up, dust themselves off, and start all over again.

The safety net has made it possible for many workers to get back into the job market relatively unscathed, but over the past few decades, more and more workers have been slipping through the holes in the net. Government after government has failed to ensure the integrity of our social safety net. Worse still, successive governments have come to power brandishing their scissors and cutting all kinds of holes in it. They seemed compelled to cut swiftly and indiscriminately.

The holes in our social safety net are well known. One of them is the notorious black hole that swallows up so many seasonal workers. The government could easily have enhanced the employment insurance system by renewing a pilot project that added five weeks of benefits, but it forgot about those workers, and they are once again slipping through the holes in the safety net. We are disappointed but not surprised.

People can count on the NDP to keep protecting workers' interests from the old parties' attacks.

Before I conclude I also want to spend some time talking about how this budget left out major promises to my own constituency, including a commitment that the Prime Minister made during the election to partner on the construction of the east side road.

The east ride road is a legacy project that would have allowed 11 first nations that are currently isolated in my constituency to access something that so many Canadians take for granted, a road.

Climate change has made their existence in isolated communities more difficult and more precarious. We are talking about communities that have as high as 80% of the population on welfare. We are talking about communities that are struggling day to day.

On September 29, 2015, the Prime Minister, when asked if he was going to be a partner on the east side road, said, “The full answer is yes, the federal government will be the partner Manitoba needs in order to deliver the infrastructure that is required”. Sadly, there is no such commitment in the budget. Therefore, whether it is on the east side road or whether it is on the other broken promises, we will remain vigilant.

Much work needs to be done on the budget to understand exactly what it covers.

I would like to seek unanimous consent to move the following motion: That, notwithstanding any order or usual practice of the House that Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016, and other measures be amended by removing the following clauses: (a) Clauses 80 to 116 related to the Canadian Forces Members and Veterans Re-establishment and Compensation Act; (b) Clauses 126 to 168 related to bank bail-ins and the bank recapitalization regime; (c) Clauses 188 to 191 related to the Old Age Security Act; and (d) Clauses 207 to 231 related to the Employment Insurance Act; that the clauses mentioned in section (a) of this motion do form Bill C-16; that Bill C-16 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Veterans Affairs; that the clauses mentioned in section (b) of this motion do form Bill C-17; that Bill C-17 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Finance; that the clauses mentioned in section (c) of this motion do form Bill C-18; that Bill C-18 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities; that the clauses mentioned in section (d) of this motion do form Bill C-19; that Bill C-19 be deemed read a first time and be printed; that the order for second reading of the said bill provide for the referral to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities; that Bill C-15 retain the status on the Order Paper that it had prior to the adoption of this order; and that Bill C-15 be reprinted as amended and the law clerk and the parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

We are proposing this motion in order to give the full scrutiny that is required by parliamentarians on behalf of Canadians.

[The Deputy Speaker, Conservative, Bruce Stanton]

Does the hon. member for Churchill—Keewatinook Aski have the unanimous consent of the House to propose this motion?

[Some hon. members]

Agreed.

No.

[The Deputy Speaker, Conservative, Bruce Stanton]

Questions and comments. The hon. member for Laurentides—Labelle.

[David Graham, Liberal, Laurentides—Labelle, QC]

Mr. Speaker, when faced with social inequality, a cause to which we are just as committed as my colleague, we must help everyone, help the entire economy, and invest in our infrastructure, our communities, and our future. If that means that we have to borrow to make investments, then that is part of our role as the government.

Can my colleague explain how the NPD could have helped anyone by promising to never run a deficit, even though there was already a deficit under the Conservatives? Where would the NDP's austerity have led us?

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Mr. Speaker, while I appreciate efforts to change the channel, we are talking about an omnibus budget bill that includes broken promises to Canadians. I explained a laundry list, including broken promises to first nations children, among the poorest people in our country. It includes a failure to step up to important election commitments.

When Canadians were presented with the tag line of real change, that is what they expected. They did not expect broken promises. They certainly did not expect more of the same, including omnibus bills. That is unfortunately what they are seeing from the Liberal government.

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, the member cited some of the challenges that she faced in her community, particularly on the issue of income inequality. In many ways there are some similarities between her riding and mine. The issue that troubles me the most with the Liberal budget is the income tax cuts and who that benefits.

Could the member elaborate on that and on how the government can make changes that will assist people in both of our communities, like so many Canadians who are in the greatest need?

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Mr. Speaker, my colleague is an incredible defender of issues that many people on the margins face, including in her own constituency, and her advocacy alongside many indigenous advocates who speak passionately about the issues of poverty and marginalization they face on an ongoing basis.

As the New Democrats have pointed out time and again, one of the first things the Liberal government came up with was a tax cut that it claimed would help middle-class Canadians. However, the parliamentary budget officer said that Canadians who made $200,000 or more a year stood to benefit the most. Despite the rhetoric, what is true is that the wealthiest Canadians continue to benefit more under the government while everyone else continues to lose out.

I can speak to a big issue that is on the minds of many people in my constituency, which is employment insurance, a program that should be there for Canadians when they have fallen on hard times. I referred to this as well in my speech. Unfortunately, this budget does not go nearly far enough in making EI more accessible to Canadians. Only 40% of Canadians are able to access it, so much more needs to be done.

Fundamentally, what this budget does not do is get at the structures that exacerbate inequality in our country. Under the Liberals, it continues to benefit those who have a lot already, while certainly not being on the side of everyone else.

[Sheri Benson, NDP, Saskatoon West, SK]

Mr. Speaker, budget 2016 is indeed a missed opportunity to reduce the inequality in our communities. Therefore, it is a missed opportunity to actually create real change. However, as my mother taught me, I do want to start by giving credit where credit is due.

I would like to commend the government on its choice to make investments in affordable housing by way of confirming for the next two years the rental subsidies for social housing. I know the social housing providers and the tenants in social housing in my community are relieved that this support is continuing.

I welcome the increase to the guaranteed income supplement and the commitment to enhancing the Canada pension plan. Likewise, I applaud the budget's commitment to lift the punitive and unfair 2% cap on funding for first nations. The tax-free Canada child care benefit will assist many parents and families in my riding. Each of these commitments is a good first step.

That said, the bill and the budget, when we weigh its costs and its benefits to Canadians, does not remove enough of the tax burden for those hard-working Canadians who fall below the median income of those few lucky enough to receive the tax breaks. In fact, the so-called middle-class tax break offers nothing for more than 60% of Canadians.

With its first budget, the government had the opportunity to create real change, to invest in reducing income inequality in the country and to begin to really tackle inequality through the most effective and efficient way possible, through progressive tax measures.

I know for a fact that large numbers of people from communities in my riding will not benefit from the middle-class tax cut. According to the city of Saskatoon statistics from 2014, the median income for five of Saskatoon's poor neighbourhoods in my riding will not benefit from the tax break. Those are thousands of people in my riding alone.

These are folks working two to three minimum wage jobs, paying well over 30% of their wages for unaffordable housing, and living in what we have called a “food desert”. If they are fortunate enough to have money left over after paying rent, the cost of healthy food is often out of reach. Research done in my community saw an increase in the number of mothers going hungry in order to afford to buy food for their children. Put simply, good, healthy food is unaffordable. A tax break for those doing well will do absolutely nothing for these people.

Likewise, the budget does nothing for those who cannot find affordable child care, especially those working to re-enter the workforce or to get training to upgrade their skills and become employable.

Many in my riding are young people with young children, and they have dreams and aspirations. These dreams are not unreasonable. Nor should they be unattainable. We should support them in every way we can. One of the ways we can do this is by providing increased access to child care spaces that are affordable.

Right now in my riding it costs almost as much for a single child in child care as it does for rent. That is of course if there is actually a space. Where is the incentive to work or go to school in that kind of situation? Simply put, a lack of affordable child care spaces is a huge barrier to young parents being able to realize their dreams. It is in fact a deterrent. It inhibits the economic growth by reducing productivity, and we must remove this barrier. A government that is committed to women's equality can pave the way to realizing that equality by implementing a national, universal, affordable child care program. However, there is no mention of child care in the budget.

The budget has been called a betrayal of small business by none other than the Canadian Federation of Independent Business. Canada's number one job creator is small business. Small business is a hugely important source of employment in my riding. In a city where there is limited primary industry, we survive on the strength of our secondary industry, our small businesses. Small business is central to the economic well-being in Saskatoon, especially during a downturn in the resource sector.

As a matter of fact, one of my campaign volunteers, a bright young woman and mother, started her own business while I was on the campaign trail. After spending her formative years in too many foster homes to count, Rachel is working harder than I have ever seen to make it, and she is, but where is the help? Where is the support for people like Rachel?

This budget also disappoints in another way. It provides no assistance at all for those in need of prescription drugs or home care. Right now, I have a veteran living in my riding who has to choose between rent, food, and the charge for the essential drugs that he needs. He pays his rent, which takes up to 85% of his pension, and uses the rest to pay for necessary prescription drugs. He has trouble looking after himself, has no family to help, and lives in a home that he increasingly cannot afford, which causes him to be housebound because of the physical inaccessibility of the building. How is he supposed to survive?

How does this happen in a country as rich as Canada? How is it that a country such as Canada does not have a national pharmacare program?

It is about choices, and this budget is about choosing to believe in a failed theory of trickle-down economics.

The government's thinking in this budget seems to be that if the Liberals give tax breaks to those who do not need them, eventually, and somehow miraculously, people living in poverty will somehow be lifted out of poverty. This is wishful thinking and proven time and again to fail in practice. It is anything but real change. It is pretty much same old, same old. Moreover, if that kind of thinking worked in practice, we would have eliminated poverty a long time ago.

That trickle will not get anywhere near being helpful to the poor, because the budget bill also does nothing to rein in the super rich who are hiding hundreds of millions of tax dollars in overseas accounts. People making $45,000 or less a year will not get a tax break, but the rich and profitable get a chance to avoid paying taxes altogether. That is plain wrong, and it is unfair. It costs us Canadians dearly, not only in millions of foregone tax revenue, but it also impedes our ability to make real change right now in 2016.

What makes the rich and the large profitable corporations better than those working long hours at two minimum-wage jobs just to get by? Why do they not have to pay their fair share? Why are they getting better and special treatment for their income?

Budgets are about choices, choices that say this is what is most important. Budget 2016 and the implementation bill chooses tax havens for millionaire CEOs and giveaways often to foreign-based corporations that take economic wealth from our country and profit off of our public resources, all the while being carried on the backs and the taxes of hard-working Canadians, the people who live and work and go to school despite all the barriers in my community. That is unacceptable. It is a long way off from real change.

Real change does not make first nation children wait for equality. Real change invests in health care.

Canadians need improved pharmacare and home care. Making health care accessible and affordable will save lives. Why not choose to save lives? Why has the Liberal government government chosen to break its promise to invest in health care? After promising $3 billion over the next four years, the Liberal government has provided nothing for home care in the budget.

Real change does not continue to raid the EI fund of almost $7 billion over the next three years. People need those dollars now. It is their money.

In my riding, we have a lot of talented, hard-working Canadians who are unemployed, thanks to an economic downturn in the region. Real change is using EI money for what it was intended: to help unemployed workers.

People are working harder than ever, but cannot get ahead. As my colleague mentioned, the recent Statistics Canada report demonstrates that income mobility is not happening. The rich are staying rich at the same rate as the poor are staying poor. Over the past 30 years, hard-working Canadians have helped grow our economy by 50%, but those same hard-working people have seen wages stagnant and retirement security vanish.

Budget 2016 makes some changes, but not real change. It merely tinkers, when there is so much potential to make bold, important investments, choices that bring real change, like equality for women, and more fairness and equity for everyday Canadians.

Unfortunately for them, budget 2016 is many deficits away from real change.

[Bryan May, Liberal, Cambridge, ON]

Mr. Speaker, my colleague spoke a lot about child care and the NDP campaign promise of $15-a-day child care. I was very concerned about this particular policy during the campaign for a couple of reasons.

My background, for those who are not aware, is working with organizations like the YMCA and the Boys and Girls Club. In fact, my name was on the licence for one of the largest child care programs in the Niagara region. There were over 200 participants in the child care program with the Boys and Girls Club. Most of the people in that program were subsidized through the region and actually paid about $8 or $9 a day.

I had two problems with the NDP plan. One was that the $15 a day would disproportionately support those who truly did not need it and, two, there did not seem to a plan on how to pay for it. I know this question has already been asked of the previous speaker, but could the hon. member explain how the NDP was planning to pay for this plan?