Bill C-2 (Historical)

An Act to amend the Income Tax Act

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.

Income Tax Act

[Some hon. members]

Oh, oh!

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

You can imagine how I feel, Mr. Speaker. I understand how you feel when you try to speak and everyone rises. I feel a little like that.

As I was saying, Bill C-2 would lower taxes for the middle class. During the pre-budget consultations, I travelled from Moncton to Yellowknife, and the Minister of Finance travelled from Nova Scotia to Vancouver. It was a very important issue to Canadians.

During our election campaign, we promised to lower taxes for the middle class because Canadians asked us to help them and their families—

[The Speaker, Geoff Regan]

Order, please. I have a couple of things here. Members should know that they should leave the chamber and have their discussions outside. Perhaps the Minister of Natural Resources and the Minister of Heritage might take their discussion outside. The President of the Treasury Board should know that they do not stand between the person speaking and the Speaker. I encourage them to take that outside.

The hon. parliamentary secretary to the Minister of Finance.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, I would like to thank you for your wise remarks. We are talking about respect in the House and listening to one's colleagues.

I will come back to the important Bill C-2. As I was saying, during the election campaign, we promised to help the middle class because it drives our economy. When we consulted Canadians from coast to coast, they asked us to help them and their families and to grow the economy.

The first thing we did to help the middle class was to lower taxes, because we strongly believe that that is how we can help Canada's economy. That was the first thing we did, because Canadians told us that they wanted more money in their pockets in order to help their families and to grow the economy.

The second measure we are implementing, which was a key component of the latest budget, is the Canada child benefit. Members will understand that this is probably the most significant social measure since the introduction of universal health care in Canada. This measure will help nine out of 10 Canadian families and allow for simpler, tax-free benefits. This will truly help the families who need a bit more money. For example, it will help families send their kids to summer camp this summer and buy back-to-school clothes. This is exactly the kind of measure that Canadians want.

The second thing people asked us for was to grow the economy. In our budget, we included significant measures for infrastructure. We committed to investing $11.9 billion in infrastructure. When we travelled across the country, people told us that public transit was a big part of what we had to do. In our society, moving people and goods is essential to economic activity. It not only costs more money when people cannot move freely, but it also has a significant impact on our economy. We therefore made a historic commitment of $3.4 billion to be invested in public transit.

Now, let us talk about the important topic of water and waste water. We are also making around $5 billion in investments in this area. These investments will make it possible to rebuild wastewater systems or invest in infrastructure, so that we can take charge or work with the provinces and territories to improve our country's wastewater treatment systems.

There are some very flagrant cases. We know that some communities still discharge sewage without primary treatment. We know how damaging that can be to the environment. The case involving Montreal, with Mayor Coderre, was quite clear. We have seen the impact that can have, and that is why we decided to make a historic investment in this area.

I would like to talk about social infrastructure. Historic investments are being made in what is known as affordable housing for Canadians. Such investments will help us move forward, just as our historic investments in innovation will help to achieve the kind of economic growth in this country that Canadians expect.

As far as Bill C-2 is concerned, I can say that people have had more money in their pockets since January 2016 and they have realized how important that was. The Conservatives often tell us that, from their perspective, promises have been broken, but I can assure the House that investing in middle-class Canadians and reducing their taxes was what had to be done. That is what Canadians really wanted.

I have the privilege to be here today and to take part in this important debate on Bill C-2, An Act to amend the Income Tax Act, at third reading, with a view to providing Canada’s middle class with a long-awaited tax break.

Since January 1, 2016, no fewer than nine million Canadians have been benefiting from this tax break. It is very important to understand that nine million Canadian men and women have been benefiting from this tax break since January 1.

The Liberal Party of Canada made this commitment during the election campaign. Since January 1, people have been benefiting from this tax break, which will enable us to invest in the economy. Canadians in every part of the country were asking the government to make investments and help their families. That is what we are hearing more and more, and that is exactly what this very important measure will enable us to do. The government was elected on the basis of a plan to grow the economy, and these changes are an important first step.

Personally, I made business and the law my career. I saw this investment as important, because it is exactly the kind of investment that helps the economy grow: putting more money in the pockets of Canadians.

The bill in question amends the Income Tax Act to reduce the second personal income tax rate from 22% to 20.5% and introduce a new personal marginal tax rate of 33% for taxable income in excess of $200,000.

During our campaign, we clearly stated our intention to help the middle class. It was the key point in our campaign. However, we also expected people with higher incomes to do more. Helping one another is part of the Canadian spirit and our identity. It was in the context of that promise that we announced our intention to Canadians. Today, I am happy to speak in the House about the fulfillment of that promise through Bill C-2.

This bill also amends other provisions of the act to reflect the new rate of 33%. It contains a number of rather technical measures. Obviously, when you change the top marginal tax rate in Canada, that entails a number of changes in the Income Tax Act. A number of provisions in the Income Tax Act are based on the marginal tax rate, which will now rise to 33%.

It also amends the act to reduce the annual contribution limit for tax-free savings accounts from $10,000 to its previous level, which, with indexation, will be $5,500 for 2016, effective January 1, 2016. We proposed to reduce this amount because we saw that only 6.7% of Canadians had taken advantage of the cumulative total that they could contribute to a tax-free savings account.

We told Canadians that our government would be based on science and facts. This measure was good public policy because, in its previous form, it benefited only a small group of Canadians.

We were elected to take measures that would benefit our economy, the middle class, and those who are working hard to join it. In December, at the first opportunity, the Minister of Finance introduced a tax cut that will put more money directly into the pockets of the middle class. I think Canadians realize that. On October 19, people made a wise choice. People wanted a government that would work for them, for the middle class, for those who are working hard to join the middle class, and for Canadian families.

As I said previously, some nine million Canadian men and women will benefit from this extremely important measure for equity and fairness in our country. The middle class has waited too long for an improvement. Despite the difficult economic situation, we have helped the middle class. We made a promise, and today I can say that we have kept that promise. Income tax has been reduced.

After this bill was introduced, our government tabled the 2016 budget, which is an essential step in ensuring economic growth and revitalizing the Canadian economy. Canada was built on optimism, often in the face of challenges that seemed insurmountable. However, the promise of a better life was broken over the past 10 years.

The confidence of many middle-class Canadians in the economy was shaken, and we wanted to restore it. For once, Canadians have a government that is standing up for them by taking measures that will promote economic development, while at the same time taking into account the most vulnerable people in our society, those who are in the middle class, and those who want to join it.

As I was saying, Canada was built on optimism, often in the face of challenges that seemed insurmountable. Even though our economy is still growing, middle-class Canadians are having difficulties.

Since I was elected, one of the most edifying things I have had the privilege of doing is to meet with those Canadians, from Moncton to Yellowknife. I went to small towns and meetings around the kitchen table where people explained their economic problems and the ways we could help them.

For once, we consulted people who had never been consulted before. It was the first time they had expressed their opinion on the federal budget and told people from the Department of Finance and the Minister of Finance, obviously, or me about their desire to see the Canadian economy grow and the need for inclusive growth.

For too long, middle-class people, families, and our young people were excluded from that growth. We had to restore such measures to benefit families and middle-class people.

Many Canadians are working harder and longer, while the cost of living keeps climbing. I remember meeting a family in Quebec City who asked for our help because they were no longer able to make ends meet. People told us that they needed a government that would listen to them, and that is exactly what we have done.

Middle-class families simply do not feel as if their lot has improved in the last 10 years, and the facts bear that out. That is why we took resolute action on January 1 to put money back in the pockets of middle-class people. The time has come to look to the future once again with the hope and optimism of the generations that came before us.

Mr. Speaker, you have often said, in your wisdom, that the privilege of being a member of this House lies in understanding the great institution of which we are part and always keeping in mind the people who sent us to Ottawa to work for them. That is precisely what we did when we listened to them and took action in this area.

We must embrace the spirit of our country’s founders and build on that legacy by creating opportunities for advancement and mobility that are as vast as those that existed in the past. We have to do so in a way that enables Canada to realize the enormous potential for growth that can come from switching to a low-carbon economy, where clean technologies and economic growth go hand in hand. We already have the keys to that future.

This week, the Minister of Finance had his first meeting with the Advisory Council on Economic Growth, which is composed of eminent experts from around the globe. That committee will work hard to put forward measures designed to promote inclusive, long-term growth in Canada.

That morning, I had the opportunity to participate in that very interesting meeting chaired by Dominic Barton of McKinsey. I should point out that it is the first council with gender parity. I am pleased that our advisory council has as many women as men from all sectors of the economy who talked to us about growth and innovation.

Let us imagine the Canada of the future and identify our strengths, but let us also be conscious of our country's demographic challenges and the fact that the Canadian economy accounts for 2% of the global economy. We must draw inspiration from best practices employed elsewhere in the world if we want to understand how to promote a stronger economy.

We are going to do what we said we would do. As we said with respect to the advisory council, we already have the keys to the future. Yes, we have challenges here in Canada, but we also have tremendous opportunities and a highly educated population.

Our country has vast natural resources. We can count on stability, predictability, and the rule of law. Those features will attract investment here.

As I said, Canadians are among the best-educated people in the world. We rank first among members of the Organisation for Economic Co-operation and Development, the OECD. More than half of all Canadian adults have a post-secondary degree, and everyone here knows that education is the foundation. No society has experienced strong economic development without having made education a priority. That is exactly what we are doing, and Canadians have one of the highest levels of post-secondary graduation.

We are world-renowned for our research and scientific discoveries. We are often on the cutting edge of clean technology, which is becoming increasingly prevalent internationally.

This is important because Canada invests a great deal in research and development. We now realize, however, that we need to do more in the way of marketing. We have to move from research and development into producing a product. Once we have a product, we need a customer, and once we have a customer, we can hope to export our product. That is how we will successfully create economic growth in Canada.

We have an abundance of natural resources that are surpassed only by the ingenuity and diversity of our people. That is also important. I often say that our greatest resource is human capital. We know, and I am sure that all my colleagues on both sides of the House will agree, that the greatest capital we have in Canada is human capital. Canadian men and women have achieved extraordinary things that have advanced humanity.

My colleague, the Minister of Transport, is a great example. He has done extraordinary things for this country. He went into space. He taught an entire generation of young Canadians, myself included, how we could dream big and realize our dreams through excellence. If there is one man who embodies excellence in Canada, it is the Minister of Transport, because not only did he give young Canadians a glimpse into space, but now he is serving his country with distinction as a member of Parliament, like all my colleagues.

Given that we have one of the lowest debt-to-GDP ratios in the G7, we know we can make these wise investments for the middle class. The Minister of Finance has been applauded by the Financial Times and the Wall Street Journal, by Ms. Lagarde of the International Monetary Fund, and by officials at the OECD. They have said that Canada is building its future on a solid foundation.

I will use my last few seconds to say how proud I am to have worked with my colleagues on both sides of the House, listening to Canadians. We drafted a budget that not only works for Canadians today, but also builds on a solid foundation to ensure that the Canada we have today will continue to prosper for decades to come.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, I wish to acknowledge my friend from Shawinigan. I am sorry, I mean the hon. member for Saint-Maurice—Champlain. When I see him I think of the Right Hon. Jean Chrétien, who of course was the member for that riding for many years.

I want to assure the hon. member that I hold him in high regard. He is a new parliamentarian, an intelligent, articulate man who works hard. He does not have any good ideas, but I have the utmost respect for him nonetheless.

I want to repeat what he said a few moments ago. He said, “We are going to do what we said we would do.” With all due respect, that is not exactly true because that party was elected on a promise that the tax changes announced in Bill C-2 would be revenue-neutral. Unfortunately, it turns out that there will be a $1.7-billion deficit. It is not the Conservatives that are saying so, but the parliamentary budget officer, whom the President of the Treasury Board was quoting earlier.

Could the hon. member explain why he says he is going to do what he promised to do, when in fact there is a deficit where the cost should have been nil?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, allow me to respond to my hon. colleague, for whom I also have a lot of respect. He is obviously an experienced parliamentarian and a very smart man.

However, as he said earlier, we do not always share the same ideas, but we do respect each other in the House, so that we can debate. What all parliamentarians want is to be able to exchange ideas.

When I spoke earlier, I said that we had made a promise. We promised to grow our country's economy. One of the key measures in our budget is to reduce taxes for the middle class by 7%, from 22% to 20.5%. That is a significant cut, and it took effect on January 1.

I have met with Canadians and I think they would disagree with my hon. colleague, because these people see how important it is to invest in the middle class and have a government that listens to them and proposes innovative measures to give Canadians more buying power.

I am so proud to have a government that is thinking about the middle class and Quebec families. When we think of the nine million Canadians who are now paying less tax, I am sure that my Conservative Party colleagues would agree that lowering taxes for the middle class is the right thing to do.

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

Mr. Speaker, I thank my colleague, the parliamentary secretary, who often fills in on the Standing Committee on Finance, where we discussed this bill.

I heard his speech. As the Liberals have been doing since this Parliament began, he made several references to helping the middle class. Given the testimony that we heard in committee, I think he will agree with me that the term “middle class” is not clearly defined. Officials from the Department of Finance refused to define it. The definitions varied depending on the witness, but no one seems to agree on what constitutes the middle class.

When all is said and done, it seems that the proposed tax cut will not help the middle class. He, as a parliamentary secretary, and I, as an MP, will see our taxes reduced by the maximum amount, which is about $700. However, the people who work as wait staff in the parliamentary restaurant or child care workers in the Prime Minister's office, for example, will not be entitled to any kind of tax cut.

Someone who is really part of the middle class, as defined by the median income in Canada, earns $31,000 or $32,000 a year. These people are not going to get anything. We tried to work with the government to amend the proposed tax cut and ensure that everyone who earns at least $11,000 could benefit. Under our proposal, anyone who earned the median income of $31,000 would have received $200, but they are not getting anything under the government's plan.

I would like my colleague to talk about how the government's measures, which are supposed to help the middle class, are unfair because they only help people who earn $45,000 or more. Parliamentarians here in the House will get the maximum tax cut of $700.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, I would like to take this opportunity to acknowledge the work done by my colleague, for whom I have a great deal of respect. He is a man of experience who always brings an interesting perspective to the committee. I would like to take this opportunity to thank him for his important contribution to our committee.

Like him, I am a member of the Standing Committee on Finance, together with some other colleagues who are here. We did indeed hear from a number of witnesses who said that the definition of middle class varies greatly depending on the region and the socio-economic context.

I was fortunate to travel to the north. The average salary in some areas is obviously quite different from the average in my riding of Saint-Maurice—Champlain. You will realize that when we take into account all the factors, the middle class is a concept that varies.

This is what we did. The member could at least give us credit for that. We were very clear in the last election when we indicated which tax bracket we would lower. That is exactly what we did. We said that we would lower taxes for the second bracket of the middle class from 22% to 20.5%, which applies to income of approximately $45,000 to $90,000. That is a 7% reduction. Canadians chose to elect us based on that.

I understand what my colleague said. He shared his views and we listened carefully at the Standing Committee on Finance. However, on October 19, Canadians chose a different path.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Mr. Speaker, I want to congratulate the Parliamentary Secretary to the Minister of Finance not only for his presentation here today but for his excellent work, along with the Minister of Finance, particularly at the beginning of this year, when they went coast to coast to coast around the country under a very difficult timeline to consult with Canadians on what was ultimately budget 2016.

I listened carefully to his presentation with respect to many of the tax measures that are included in budget 2016 and how it would improve the lives of middle-class Canadians. Some of the things I did not hear, which I want to give the parliamentary secretary an opportunity to expand on and are particularly important to my riding of Scarborough—Agincourt, are the strategic investments, particularly in infrastructure, and in particular as it relates to public transit.

We have had some interesting announcements that have taken place in, for example, the Toronto area. I would like to give the opportunity to the parliamentary secretary to further elucidate as to how it might impact my particular region of the country.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, I would like to thank my colleague and say what a pleasure it is to see him in the House. Perhaps I had the privilege of travelling coast to coast to coast, but I recognize my colleague went through a difficult time. It is nice to see him with us, because he is an outstanding member with the respect of everyone in the House. These days, one can only appreciate being surrounded by people like him.

The question brings me back to the first thing the member said, about the humbling experience. We are going about consultations in many different areas, but we did our finance consultation and went from coast to coast in the country, and I had the chance to go to his part of the country. It was one of the most humbling experiences.

To come back to what the member was saying, over the next two years we will invest $11.9 billion on phase one of our new infrastructure program. This is significant. It is part of the $120 billion for the next 10 years. This is exactly the type of investment that is going to help our country with economic growth, but also provide Canadians the necessities in terms of infrastructure. We have inherited a situation where the previous government lacked the necessary investment in our infrastructure, which deprived a number of our communities and our cities of essential infrastructure.

The member was talking about public transit. The investment is going to be $3.4 billion. In some communities, moving goods and people faster is so important. Traffic jams are not just a nuisance. There is a huge economic cost. Our economists have calculated how much it costs when people are in traffic for one or two hours per day, and they say that making these smart investments would allow us to have economic growth in regions like his.

We heard from many of his people that they wanted us to make investments in public transit. I have been in the cities. We have admitted a number of new Canadians, and because of the sprawling of cities, jobs are here and people are there. There is no connection between the two. I met people who said they could not find people to hire and I met people who said they do not have a job. These investments would help our country to succeed in this century and for the future.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, on behalf of my political party, I am pleased to speak in the debate on Bill C-2.

As we have seen just now, Bill C-2 contains the initial application of the new Liberal government’s financial measures. We recognize that Canadians spoke last October 19. We are true democrats. We respect the choice made by Canadians, and we want the government to respect Canadians.

The first thing that the government and any politician must respect is the commitments made during the election campaign. Unfortunately, in that regard, the least we can say is that this government got elected by saying one thing and is now doing exactly the opposite.

Bill C-2 is the first manifestation, if we needed one, of this sad reality. I said so just now in the question that I asked the Parliamentary Secretary to the Minister of Finance. Of course, we are all members of Parliament. However, he spoke as a parliamentary secretary, and I am happy to repeat publicly what I said before: this guy should be in cabinet and not just a parliamentary secretary.

What the member said just now is that, unfortunately, election promises could not be kept. With all due respect to the Parliamentary Secretary to the Minister of Finance, he did not answer the question. The Liberal Party made a commitment to bring in tax changes that, it said, would benefit the greatest number of Canadians. It is a point of honour, because it is a cornerstone of its platform. Those tax changes were supposed to be revenue-neutral. However, now reality has caught up with the Liberals: this government is making tax changes that are not revenue-neutral, but rather create a deficit.

That deficit is $1.7 billion. The parliamentary budget officer also says so, the very one quoted by the President of the Treasury Board just a few minutes ago as saying that everything is hunky-dory. I presume that the government has great respect for this institution, but this institution says, in black and white, that the tax changes made by the government in Bill C-2 will generate a deficit of $1.7 billion.

Not long ago, I heard the member say that families are content and that people are happy that money is being put in their pockets. I am quite sure people are happy, but can we afford that? No. When we do that, we must do so realistically, responsibly, and in a balanced way. Let us remember that our government, under the leadership of the right hon. member for Calgary Heritage, put forward measures to reduce taxes, at zero cost. There were 140 such measures in all.

Let us remember the most spectacular measure, taken in the first term: we lowered the GST from 7% to 6% and then from 6% to 5%. We promised to do that, and we did it. Need I also remind the House that years ago, the predecessor of the member for Saint-Maurice—Champlain, the Right Hon. Jean Chrétien, made an election promise in 1993 to abolish the GST? He never did abolish it, which led to a by-election to replace the minister, who left.

Sure, tax cuts are nice and changes to taxation are nice, but they have to be made realistically and responsibly, which is not the case with Bill C-2.

This is not the only time the government has made a promise about finances but done the opposite. Changes to the tax structure will cause a $1.7-billion deficit, and the same goes for changes to family benefits. The Liberal government is acting the same way. It promised that its changes would be revenue-neutral, but reality is catching up with it.

Changes for families, represented by the hon. member for Québec, the Minister of Families, Children and Social Development, my colleague and neighbour, were not supposed to cost anything. However, they are causing a $1.4-billion deficit.

Need I remind the House that the financial cornerstone of this government or any government is, without doubt, the budget? What did the Liberal Party say about the budget during the election campaign? It said there would be little wee $10-billion deficits for three years followed by a balanced budget and that everything would be fine.

The fact is that there will be a $24.9-billion deficit this year. That is the reality of this government: it says one thing but does the opposite. It promises a balanced budget but ends up in the hole. It says we will have small deficits but ends up with big ones. How are we supposed to trust this government? How can we believe a thing it says?

How can people not be even more cynical about politicians when, unfortunately, the government stands out so distinctly for promising one thing and then doing the opposite?

I am appealing to the government's common sense, and I am inviting it to make some changes and stop living beyond its means. A deficit is a burden for our children and grandchildren. Some will say that this is good for families and children. As I understand it, we are passing the burden to families and children. That is not a responsible approach.

Some colleagues opposite will say that when the Conservatives were in power, they ran up deficits. When we were in power and the right hon. member for Calgary Heritage led Canada, the country faced the worst global economic crisis since the Great Depression of the 1930s. Despite this terrible situation, we won the G7 triple crown because we were in power and because the Conservatives had a prudent and rigorous approach to managing the country. We are the best in the world with respect to the three fundamental aspects of the economy. We like to compare ourselves to the best in the world, because that is how we get good. We won the G7 triple crown under the rigorous management of the former government led by the right hon. member for Calgary Heritage. We had the best debt-to-GDP ratio, the best job creation record, and the best economic recovery. That is our government's legacy.

I want to emphasize the best debt-to-GDP ratio. We often hear the people currently in power say that they have the best debt-to-GDP ratio, which makes it possible for them to incur a deficit. It is because of the Conservatives that Canada has the best debt-to-GDP ratio. Had we used the Liberals' approach to managing the country during the economic crisis, we would not be the best. We would be the worst. They are making bad decisions.

I would like to remind Canadians that we left the House clean. We won the G7 triple crown. We had the best debt-to-GDP ratio. We left a surplus. We are not the only ones to say so. When the current government came to power, in November, what was the state of our finances? We had a $1-billion surplus. I am not the one saying so; the Department of Finance said so.

I got a document out of my desk, but I cannot show it. Why do I have it? I keep it close by because it is crucial to always remember what is fundamental to our political action. We are here to vote on legislation and budgets, but we must always have accurate information.

The Department of Finance indicated in the “Fiscal Monitor”, which is published by that department, that there was a $1-billion surplus for the period from April to November 2015. That has the Conservative government's signature all over it. That is how we left things financially. Unfortunately, the current government is living beyond its means.

I would like to say one last thing about the document I cannot exhibit. I think we have asked for this official document to be tabled at least 50 times. Unfortunately, the government systematically refuses to table a simple document that confirms our sound and good management.

In our view, the best thing for the Canadian economy is clearly wealth creation and job creation. However, wealth and jobs are not created by the government, but by private businesses, our entrepreneurs, our men and women who, through their intellect, enthusiasm, determination, and community leadership, create jobs and wealth. The government needs to be there to support them.

With deep sadness, our entrepreneurs have realized that there is absolutely nothing in the budget to help them. That is our vision.

The Conservatives believe that to help our businesses grow, markets need to be opened up. I have the great privilege of sitting next to my hon. colleague from the Vancouver area, who was the minister of international trade. For four years, with honour, dignity, and success, he conducted the negotiations on the trans-Pacific partnership, which is providing Canada and Canadian business people with access to a market of 800 million people. It is fantastic.

We are asking the government for assurance that this treaty will actually be ratified and the guarantees offered to our workers across Canada will be honoured, particularly regarding the famous issue of supply management.

In Bill C-2, we see that, unfortunately, that vision is not the right one, from our perspective. That is where the heart of political action lies. What vision do we have for the future of Canada? For us, the Conservatives, it is clear. It must also be said that for the Liberals too, it is clear. In our view, it is not the right one.

We believe that we have to live within our means, that we should not run a deficit in times of prosperity, which is in fact what was said by the Right Hon. Paul Martin, the former prime minister of Canada, but more importantly, the former minister of finance in the Chrétien government. In fact, his memory was honoured, not in the funereal sense, but for his historical importance to our nation, our country, when his portrait was unveiled just a few days ago.

Paul Martin said that in times of prosperity, the deficit must be eliminated and, above all, the debt paid off. That was a vision that we share and that, unfortunately, seems to have faded over time in the Liberal Party. To us, it is clear: you do not run a deficit when the country is prospering. The Liberal government has quite a different vision.

It is crystal clear. With Bill C-2, we see a government that shares not exactly the same vision, point of view, attitude, or policy as we had under our former leadership for the last 10 years. Let me be clear, in the last 10 years, our former prime minister was very strict on public funding, but first and foremost we left the House clean. There was a $1 billion surplus at the end of our mandate and also the big three of the G7: the best ratio of debt to GDP; the best at creating jobs; and the best in getting back our economy after the crisis. That is the Conservatives' signature. This is how we left the House. It was a really clean, good House left by the former Conservative government.

However, today what we see is a government that spends too much. It is a government that does not respect the fact that we have to live on what we have, instead of what we wish to have. When we create deficits in that situation, we send the bill to our children and grandchildren, even to those who are not born today. They will have to pay for the fact that today the current government is doing it all wrong and making bad decisions for the future of this country.

It is not too late. Maybe the government will open its eyes and make some modification, maybe. It is not too late. The bill is not yet passed. I can dream. I am a dreamer; not all the time, but I am a dreamer.

We strongly disagree with this attitude. Every party wants to give money to the people. We did that 140 times when we were in power. We reduced the debt, reduced the taxes, reduced income tax, and all that stuff. We did that 140 times in our government, but we did it very responsibly, which is not the case in this bill.

I hope that this House will reject Bill C-2.

[François-Philippe Champagne, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I was pleased to listen to my colleague.

As he said, we are in the House to listen to one another. I would just like to say that there is one model we do not care to emulate. I am talking about the hon. member for Calgary Heritage, the former prime minister of Canada.

To us, he is not really a role model because he added $150 billion to Canada's public debt. Hon. members will understand that on this side of the House, we do not really see that as an example to follow.

I listened to my colleague from Louis-Saint-Laurent with great interest. I noted that at one point he asked rhetorically whether we had the means to help the middle class. His response was no.

I can say one thing. After meeting Canadians from coast to coast, the answer is yes. We do indeed have the means to help and invest in the middle class. The reason is simple. Canada has the lowest debt-to-GDP ratio in the G7. Now I have a question for the hon. member for Louis-Saint-Laurent

Who is he disagreeing with? Is it the Financial Times, which says that Canada is the star of global economic growth? Is it The Wall Street Journal, which described our Minister of Finance as someone who is showing other countries how it is done? Is it the parliamentary budget officer, who said the measures in the budget are going to create growth? Is it Christine Lagarde, from the IMF, who sees Canada as an example? Is it the G7?

Among all those who are saying that Canada is on the right path under this Minister of Finance, who got it wrong in his books?

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, I would encourage my colleague to use caution when quoting articles from foreign news sources, particularly if he is reading what the foreign press has to say about our Parliament and our Prime Minister these days.

Since the member is quoting, I would like to quote from his election platform, which says these changes will be revenue neutral. Would he like to quote that document? That is what I went by, and that is what 35 million Canadians based their vote on. In reality, these measures are not revenue neutral.

Once again, the best debt-to-GDP ratio forms the cornerstone of the Liberal Party's plan. Who is responsible for that? Who enabled Canada to have the best economic performance coming out of the economic crisis? What government made sure that we were the best creator of jobs and wealth in the G7? It was our government. Yes, I am very proud of the legacy left by the right hon. former prime minister, the right hon. member for Calgary Heritage.

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

Mr. Speaker, I would like to thank my colleague from Louis-Saint-Laurent. I found his remarks very interesting. He is a good speaker. It spices up the debate.

I would like to begin my question by pointing out a comment that he made at the beginning of his speech. He said that when the Conservatives were in power, they made responsible tax cuts. He mentioned the GST. According to the data that I have, the lowering of the GST from 7% to 5% over two years and the corporate tax cut cost over $16 billion, which completely eliminated the surplus that the Conservatives inherited, even before the recession hit.

The member should be careful about making comparisons that are not quite accurate.

However, one thing he did not mention in his speech that is in Bill C-2 is the TFSA limit. We know that the previous Conservative government wanted to increase the limit to $10,000. One thing we do agree with in this bill is the decision to bring the limit back down to $5,500, but to index it. We support this measure because many people think a TFSA is meant to be a place to put money that will generate interest, which will not be taxable. However, the tool can be used for many other purposes, including purchasing shares and all kinds of other financial tools. Capital gains on these tools would ultimately not be taxed.

The parliamentary budget officer estimated that this measure would cost about 0.7% of Canada's GDP in the medium term. I would like to hear my colleague's thoughts on why the Conservatives always wanted to increase the limit to $10,000, even though that would have had disastrous consequences for the Canadian economy.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, it is my turn to acknowledge the expertise of my colleague from Rimouski-Neigette—Témiscouata—Les Basques, with whom I have had the pleasure of debating several times on RDI. I must admit that I would have to prepare a little bit before going on the air to debate an experienced economist like the member for Rimouski-Neigette—Témiscouata—Les Basques. Overall, I do not think it went too poorly.

I thank my colleague for bring up TFSAs, because I had that topic in my notes, but I forgot to look at them. I would be happy to talk about TFSAs. Once again, the different parties all have different visions, and that is why we are here in Parliament.

We all know that the New Democratic Party is fine with taxes. We think it is much better to lower taxes, as we did with the GST, and put more money in people's pockets to help get the economy moving.

The economy is a key, cardinal value for us. Unfortunately, we know that Canadians are not saving enough money for retirement. The TFSA was a new vehicle that enabled Canadians to save money. Some people did not like it when it was introduced, but it has been so good that nobody wants to get rid of it now. Bravo. Here is where we part ways: we think the TFSA limit needs to be higher. We have to enable people who earn a good living to save money too. We have to make that possible because that is a vision we have for the future. Everyone has their own thinking on that. I know some people think it is not the way to go, but for us, it is a cardinal value. Canadians have to save money. We created this tool, and we wanted to make it even better.

I am not a millionaire, but I like the TFSA a lot. I save money, and that is a good thing. We all live according to our means, and when possible, if people have no debt, it is a great thing to be able to save.