Bill C-2 (Historical)

An Act to amend the Income Tax Act

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

This enactment amends the Income Tax Act to reduce the second personal income tax rate from 22% to 20.‍5% and to introduce a new personal marginal tax rate of 33% for taxable income in excess of $200,000. It also amends other provisions of that Act to reflect the new 33% rate. In addition, it amends that Act to reduce the annual contribution limit for tax-free savings accounts from $10,000 to its previous level with indexation ($5,500 for 2016) starting January 1, 2016.

Elsewhere

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

Votes

Sept. 20, 2016 Passed That the Bill be now read a third time and do pass.

April 19, 2016 Failed That it be an instruction to the Standing Committee on Finance that, during its consideration of Bill C-2, An Act to amend the Income Tax Act, the Committee be granted the power to divide the Bill in order that all the provisions related to the contribution limit increase of the Tax-Free Savings Account be in a separate piece of legislation.

March 21, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

March 8, 2016 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-2, An Act to amend the Income Tax Act, since the principle of the Bill: ( a) fails to address the fact, as stated by the Office of the Parliamentary Budget Officer, that the proposals contained therein will not be revenue-neutral, as promised by the government; (b) will drastically impede the ability of Canadians to save, by reducing contribution limits for Tax-Free Savings Accounts; (c) will plunge the country further into deficit than what was originally accounted for; (d) will not sufficiently stimulate the economy; (e) lacks concrete, targeted plans to stimulate economic innovation; and (f) will have a negative impact on Canadians across the socioeconomic spectrum.”.

Income Tax ActRoutine Proceedings

May 19th, 2016 / 10 a.m.

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NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

moved for leave to introduce Bill C-274, An Act to amend the Income Tax Act (transfer of small business or family farm or fishing corporation).

Mr. Speaker, my bill would end a blatantly unfair situation that puts business people, farmers, and fishing vessel operators at a disadvantage when they want to pass their business on to a child rather than a stranger. The difference is a big one. For a million-dollar business, the difference can be around $200,000 from a taxation perspective. For a $10-million farm, we are talking $2.2 million less if the owner sells it to a stranger rather than a family member. We have to do something about this. This bill is well thought out to avert any possibility of tax avoidance arising from these amendments. I hope that the members of the House will support my bill at second reading. I am pleased to introduce this bill.

(Motions deemed adopted, bill read the first time and printed)

Income Tax ActRoutine Proceedings

May 19th, 2016 / 10:05 a.m.

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Bloc

Xavier Barsalou-Duval Bloc Pierre-Boucher—Les Patriotes—Verchères, QC

moved for leave to introduce Bill C-275, An Act to amend the Income Tax Act (business transfer).

Mr. Speaker, I rise in the House to introduce a bill seconded by my colleague from Manicouagan. The purpose of the bill is to amend the Income Tax Act with respect to business transfers. As we all know, the population in Canada and Quebec is aging. As a result, there are certain needs regarding the transfer of businesses that are becoming increasingly urgent and important. Unfortunately, under the existing rules, there is a certain tax unfairness that makes it disadvantageous in some cases for people to transfer a business to their children or other family members. The purpose of this bill is to amend the act, specifically section 84(1), to include the children and grandchildren of shareholders, so that they are not put at a disadvantage when family businesses are transferred.

(Motions deemed adopted, bill read the first time and printed)

Income Tax ActRoutine Proceedings

May 19th, 2016 / 10:05 a.m.

See context

Liberal

Karina Gould Liberal Burlington, ON

Mr. Speaker, I hope you will find unanimous consent for the following motion. I move that, notwithstanding any standing order or usual practice of the House, the Journals and the Debates for Wednesday, May 18, 2016, be revised to add the name of the member for Berthier—Maskinongé to the list of nays in division No. 63.

Income Tax ActRoutine Proceedings

May 19th, 2016 / 10:05 a.m.

See context