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.

Budget Implementation Act, 2016, No. 1

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

Mr. Speaker, as I toured my rather large riding, about four times the size of P.E.I., I talked to my 43 city councils, many schools, many community organizations, and many chambers of commerce. The questions that I receive often came back to whether they can have more investment in infrastructure, in our youth, in our communities and families, in the future.

Did the member not hear from constituents in his riding that they want a that future they can look forward to?

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, it is clear that the budget would not invest in the future that the member is referring to. Canadians are not asking for a future of massive debt and massive taxes. The government ran on a specific promise to cap the budget deficit at $10 billion. Canadians are not saying they want a future of massive debt, that they want to bury their children and grandchildren in $120 billion of deficit spending over four years. Canadians are not asking for that.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Mr. Speaker, the Liberals go on and on about how they are working for the middle class, but they cancelled the measure that the Conservatives initiated to cut small business taxes from 11% to 9%.

Earlier, they were also boasting about how they are working for youth, but they outright cancelled the youth hiring tax credit for small businesses. That will make it harder for youth to find work. Plus, how can young people hope for work in agriculture, including in Salaberry—Suroît, with all of the problems related to the border and diafiltered milk?

The Liberals' budget does not promise a very bright future for youth. What are my colleague's thoughts on that?

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, my hon. colleague has brought up some very strong points that we both, oddly enough, agree on.

I think this underlines the problem with the Liberal budget. When Conservatives and NDP both agree on very basic things, there is something wrong with the Liberal budget. Cancelling the small business tax break is another one of the broken promises.

I am sure that none of the Liberals, when they went coast to coast to coast, heard “I am a small business person, so cancel my tax break.” The Liberals have said again and again that the middle-class tax break of $1 a day is going to trickle down and help the small businesses. That is fraudulent talk. It is plain silly. It is not going to happen.

My NDP colleague is very right about the cancelling of the small business tax breaks and the hiring tax breaks. It is hurting the youth and it is hurting Canadians. There is a zero tax break for those making under $45,000, which is a huge majority of Canadian taxpayers and a huge majority of people who need it. It is ridiculous. I understand what my colleague is saying. I agree with her 100%.

The budget does nothing for youth, does nothing for our future, and it does nothing for small businesses.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Mr. Speaker, the Liberal member asked a question around infrastructure. The previous government had record levels of infrastructure.

I wonder if the member for Edmonton West would comment on an issue with small rural municipalities, especially in Ontario, and in the one I represent. Municipality after municipality has received letters from Kathleen Wynne that the municipalities are too wealthy, that they have too much money and they are not eligible for infrastructure projects, for sewers, roads, bridges. It is outrageous.

I wonder if the member for Edmonton West would comment on that and maybe have the Liberals across the way send a message to Kathleen Wynne in Toronto to get going on helping rural municipalities across this province, and in other provinces.

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, my colleague brings up a very valid point that I spoke about as well, which is the general unfairness of how items, such as the transit infrastructure, are rolled out.

There is a tiny portion for Edmonton, a tiny portion of Calgary, almost nothing for Regina, if anything, and yet there is a big chunk for cities that are predominantly Liberal and out east. It discriminates against areas that are not very well served by Liberal MPs.

This is just another example of favouring certain areas at the expense of others. It should be about fairness and growth. Growing across the country should be about fairness, not picking specific winners in certain little areas.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I am honoured to rise on behalf of my constituents in Guelph to extend my wholehearted support for budget 2016, growing the middle class, Bill C-15. The budget has many bona fides, from the emphasis on the environment, to infrastructure investments, to building the economy, but there is no doubt in my mind that the budget's greatest asset is its focus on innovation.

However, I feel compelled to ask the House this: what is innovation exactly? Innovation is much more than a buzzword. It is a perspective, a new way of seeing our world. Innovation is creativity with a job to do, as John Emmerling defined it. Innovation is the route to developing a prosperous future for business and a more efficient government for the Canadian people. Assembling new technologies, best practices, and ideas is critical, but the process does not stop there. In fact, that is just the beginning.

By bringing together experts and entrepreneurs with new technologies and by utilizing the best available practices from around the world, Canada will flourish, cementing our place as a prosperous nation. That not only adds to the value of our economy but adds to the value of economies around the world.

As I was the former president of the Guelph Chamber of Commerce and co-founder of Innovation Guelph, I have seen this work, and we did our part to grow our community.

As a result of hard work and creativity, Guelphites now have the lowest unemployment rate in Canada. Guelph is ranked number one in the agricultural biotechnology cluster in Ontario. It is also one of the top two in Canada. Guelph's advanced manufacturing sector has 360 businesses employing over 14,000 people in Guelph, with employment growing at close to 10% annually.

Clean technology is a rapidly growing sector in my riding. Canada's largest solar panel manufacturer is located in Guelph, and many businesses are working around the world on water and air quality as well as on alternative energy.

The University of Guelph and Conestoga College have been key to shaping Guelph's growth. Focusing on innovation through business, academic, and government partnerships has been key to Guelph's success, and it will be the key to Canada's success going forward.

If this is what the city of Guelph can accomplish with an innovation network, just imagine what Canada could accomplish if there were a string of innovation networks linking coast to coast to coast.

Building this new future for Canada begins where this government does; it begins with engaging Canadians. Creative and entrepreneurial citizens are at the heart of this new innovation agenda.

Investing in education is a crucial step in developing Canadian talent and as a means of attracting talent from abroad. Through the Canada Foundation for Innovation, the Government of Canada has already made significant investments in research infrastructure at Canada's universities, colleges, and research institutes.

Provinces and territories also provide substantial funding for campus renewal every year. Nevertheless, much of Canada's post-secondary infrastructure is over 25 years old and is nearing the end of its useful life. This presents an opportunity to invest in greener and innovation-friendly spaces.

As chair of the innovation and post-secondary education caucus, I strongly support budget 2016, as it will invest $2 billion dollars in a new post-secondary institutions strategic investment fund.

Commercialization and growth is truly an indispensable element of the innovation process. Dynamic, globally interconnected firms will propel clean economic growth, increase Canada's productivity, and support well-paying jobs for the middle class.

Connections between knowledge producers and users, including researchers and firms, and collaboration within supply chains, driven by market opportunities, create value through innovation while supporting economic growth. Information gaps and coordination challenges may prevent these linkages from being developed to their full potential, impacting the strength of innovation ecosystems.

Therefore, to help address these challenges, budget 2016 proposes to make available up to $800 million over four years, starting in 2017-18, to support innovation networks and clusters as part of the government's upcoming innovation agenda.

Last, but certainly not least, science and technology is the fuel that makes innovation possible. Technology has always shaped the course of human events, and the future will be no different. Therefore, we cannot ignore or become mere bystanders while other nations in the world race past us in an effort to gain the technological upper hand.

Canada's universities, colleges, and other research institutions play a fundamental role in our society by developing the leading technologies of the day, just as we did in the past with penicillin, the Avro Arrow, and the telephone, to name just a few examples of Canadian technology.

In keeping with Canada's long history as a global leader in research and development, budget 2016 proposes an additional $95 million per year, on an ongoing basis, to be provided to granting councils. This will be the highest amount of new annual funding for discovery research in more than a decade. As well as demonstrating the foresight of budget 2016, this initiative will support up to 50% of the eligible costs of infrastructure projects at post-secondary institutions, paving the way for success for hundreds of thousands of Canadian youth.

As a member of the House of Commons Standing Committee on Industry, Science and Technology, I recently visited businesses in Montreal's aerospace industry that form part of Canada's aerospace cluster. These businesses show the power of industry-academic collaboration, but also the importance of collaboration with the federal government, to compete and partner with each other and with countries in this area.

I am a member of the automotive caucus, and the same can be said about that sector. It is critically important that government, industry, and academia work together to develop our innovation agenda. Budget 2016 gives us first steps to focus government as a key partner in innovation.

Budget 2016 provides Canadians with the tools they need to innovate and build a stronger, healthier, and greener Canada for future generations. I eagerly await the advances in science and technology that will come about as a direct result of the investments we make here today.

No less than Mahatma Gandhi said that we must be the change we wish to see in the world. By embracing and embodying innovation as a perspective, acting as a lens through which we can see the world, Canadians will once again be the change they wish to see in the world and being the trailblazers to whom the world can look as a model for success.

[Dianne Lynn Watts, Conservative, South Surrey—White Rock, BC]

Mr. Speaker, I thank the member for a lot of that information on innovation. As a former CEO of a health-tech innovation foundation, I am glad to hear that the Liberals are continuing the great work that we started.

Most universities have incubators, commercialization centres, and the network of clusters, from Halifax all the way to British Columbia and through North America. That network is very strong. I wonder if the member has reviewed the database to look at those clusters. What is the plan in terms of funding those innovation centres?

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I thank the member for South Surrey—White Rock. It is great to hear that she also has a passion for innovation.

We are looking at the clusters across Canada through the innovation and post-secondary education caucus. We are looking at a way forward where the federal government can partner with the provincial governments and the educational institutes to try to get research commercialized and have commercialization fund new jobs in Canada. It is a long-term project, but it starts with budget 2016.

[Wayne Stetski, NDP, Kootenay—Columbia, BC]

Mr. Speaker, I very much share the interest in innovation and green energy the member spoke of.

I recently held a climate change workshop in Nelson in my riding, and 250 people showed up for it. One of the presentations was by a fellow who has a solar company, and he was quite concerned that there are no grants available for people to invest in solar energy in their homes currently. I wonder if the member is aware of any programs that can help Canadians do the right thing, whether it be with the purchase of electric vehicles or solar panels for their homes, that are part of this particular budget.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I thank the member for Kootenay—Columbia for his very astute question. Nelson, B.C. is kind of a twin city to Guelph, where we have a lot of environmental efforts and a lot of people focusing on the world ahead of us. The funding we are looking at in our budget is in green technology investments through our green technology funds. We hope to see those rolling out through the provinces to the municipalities so that people, such as the person the member described, will have access to some assistance in developing green technology going forward.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I appreciate the member's thoughts about innovation. I would ask the member to comment on how important it is that we incorporate stakeholders. I will use the example of Magellan Aerospace, a great aerospace company in Winnipeg. One of the things I appreciated when I had the tour was the fact that the company had a space for Red River College, a post-secondary institution. By having that relationship, students are able to use world technology that the college would not likely have been able to use without that type of co-operation.

Could the member provide some of his thoughts on how important it is to have co-operation between the private and public sectors on the issue of innovation?

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I thank the hon. member for Winnipeg North. It is wonderful to get a question from my hometown. I am a graduate of Red River College. In fact, the person who is working on the aerospace sector is a former classmate of mine.

It is very important to have all three partners at the table. Something I really saw develop strongly through my work with the chamber of commerce in Guelph was that government, education, and business all need to work together. Government needs to provide policy, direction, and assistance to compete globally. Education needs to provide the new ideas and the young people coming into the market with new ideas to move us forward as a country. Business needs to backstop some of this and be an honoured member at the table, bringing forward funds and opportunities to create globally.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, I rise in the House for a second time 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. Specifically, I plan to address issues of budgetary concern that would have a direct impact on my riding of North Island—Powell River.

We are currently at the report stage, so I will also be discussing a few of the NDP's proposed amendments to the bill. Thirty-six amendments were tabled in committee by the opposition parties; 15 of them came from the NDP. These amendments would not have made this a progressive budget, in my eyes, but they were crucial and would have made the bill passable. Unfortunately, without them, I am afraid I will have to oppose the main motion at report stage.

As we know, the Liberals decided to listen to its false majority, rejected most proposed changes in committee, and introduced time allocation in the House after only two days of debate.

The Liberal government campaigns on a promise of more help for the middle class. In the communities I serve, I hear from people who identify as middle class but who make less than $45,000 a year. I also represent people who are the working poor and struggle day to day to make ends meet. This tax break would not help these people.

At a time when Canadians need a government to tackle growing income and wealth inequality, the Liberals went in the opposite direction. Everyone agrees that those in the highest tax bracket, earning $210,000 or more, would benefit the most from the Liberal's so-called middle-class tax cut. Six out of 10 Canadians will get nothing from this Liberal plan.

What sets New Democrats apart is our belief that the government should be tackling inequality, not compounding it.

One community in my riding is facing a very painful reality. A mill closed and has been shut down for almost two years. There is no word yet to the community on whether it will reopen or not, but the impacts have been extremely painful, and I have been so grateful to the people who have contacted my office to share their stories and to ask for help.

The people in the communities I serve are hard-working and dedicated to the communities they live in. This tax break would not help them in their process to revision their family or their community. New Democrats proposed to modify the tax cuts so that working-class and middle-class Canadians would benefit from tax changes. The PBO confirmed today that the NDP plan would benefit nine million more Canadians and have a much fairer distribution of benefits.

It is time for a government that is more fair to those who work so hard in our communities.

Two weeks ago, I started a tour in my riding of North Island—Powell River for town halls, to have a conversation on seniors' issues. I listened to their priorities so that I could understand their needs better and work to ensure that they are met. In a riding as large as mine, I have completed only a third of the area and look forward to completing the rest, but I will tell members that these voices were strong and often unanimous. I was deeply touched and startled by the stark realities they shared with me of the people who supported us in the building of this country. Many of them are now feeling completely abandoned.

I have been in Ottawa for nearly eight months now and I am astounded to witness how little we have spoken about the needs of our elders. The budget would not include any additional provisions for home care or palliative care, even after the Liberals promised $3 billion for home care during the campaign. I can tell members that, in the riding of North Island—Powell River, it is desperately needed.

How many more years until we see money or even a strategy in place to meet the needs of Canada's seniors? By 2036, the number of seniors will double. It should be a critical question we are asking in the House, planning for now and for the future.

When the federal budget was introduced, we did welcome the government's recommendation to increase the GIS for single seniors. Let us remember that on the campaign trail the Liberals' promise was to help them immediately. Why are seniors having to wait until July?

The NDP moved to make the increase to the GIS retroactive to January 1. The Liberals rejected our amendments. However, the seniors in my riding can count on an MP who will have their interests in mind.

It is rare for politicians to agree on anything, but during the election all three parties promised to lower the small business tax rate to 9%. Liberal MPs still have yet to keep the election promise they made to small business owners that would see a break on their taxes.

New Democrats have been fighting for a long time for tax cuts for small businesses, which are the real job creators in Canada. In the communities I serve, our natural resource industries have taken many hits. Now with less of these jobs, small businesses have stepped up to the challenge of working in the communities to create economic development and local jobs.

Vague comments hoping people will have more money to spend, which would be good for small business, are not enough. Small businesses are the backbone of our economy, and in rural and remote communities they are often dedicated to supporting the communities in so many ways. It is time to return the favour to these small businesses, to give them what they need so they can make choices, which will help communities across Canada.

The NDP proposed two amendments at the Standing Committee on Finance for the Liberal government to reconsider the tax increase for small and medium-sized enterprises. Not only did the Liberal members of the committee reject all amendments proposed by the opposition, but on many occasions they remained silent and refused to explain their decisions.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, said it best. He said:

So you can imagine our surprise on budget day when we heard that, “Budget 2016 proposes that the small business tax rate remain at 10.5 per cent after 2016”....

We've been trying to figure out why the government did this. Some reasons have been floated. I have to say, after meeting with several cabinet ministers, and many MPs of all parties, there has been no suggestion as to why the government chose to take this action.

I would like to thank my colleague and neighbouring MP, the member for Courtenay—Alberni, for standing up for small businesses. In the last weeks he has launched a campaign that encourages small businesses to send a broken promise invoice to the Liberal government. In total, the cancelled tax reduction will cost Canadian small businesses $2.2 billion over the next four years. Many small business owners were counting on these scheduled reductions. They could have upgraded their operations or given their employees a raise. Now, they feel betrayed. I encourage all small businesses in my riding to stand with us and send these invoices to the Liberal government.

Consecutive Liberal and Conservative governments have given massive tax giveaways to Canada's most profitable corporations. Meanwhile, the NDP is a party that offers tangible solutions that would make a difference for those who need it most. We are listening to small businesses.

Budget time is the government's opportunity to start capping transaction fees for credit cards and facilitating the transfer of family businesses between generations. These are small changes that would go a long way.

The Liberals repeatedly criticized the anti-democratic behaviour of the Conservatives with their omnibus bills, but now that they are in power, they are repeating the practice. Bill C-15 is a large bill. It has 179 pages, amends over 30 separate statutes, refers to nine different ministries, and impacts several others. Moreover, it retroactively repeals an act and proposes retroactive changes, includes a complex chapter on bank recapitalization, and proposes changes to employment insurance.

The budget and its implementation bill simply do not meet the needs of the vast majority of the people I serve. Unfortunately, like his Liberal predecessors, the Prime Minister has given us an omnibus bill that puts tax relief for CEOs and big, profitable corporations ahead of help for many hard-working Canadians, unemployed workers, and small and medium-sized businesses.

At a time when Canada needs a government that will combat rising inequality, the Liberals' first budget is inadequate.

[William Amos, Liberal, Pontiac, QC]

Mr. Speaker, I appreciate the intent behind the member's speech, which is to fight for lower- and middle-income Canadians.

However, I would ask the hon. member what she thinks about the measures taken by the government in the budget to establish the Canada child benefit and provide $6,400, tax-free, to families earning $30,000 less for each child under the age of six and $5,400 for children between the ages of six and 18. Does that strike her as a measure that is helpful to middle-class Canadians?