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

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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 ActGovernment Orders

March 11th, 2016 / 2 p.m.
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NDP

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

Mr. Speaker, first of all, I agree with many of the things in the hon. member's speech, and that is quite natural because we come from the same part of the country. We have many similar problems.

In response to the Liberal member who just spoke, there has been no mention here of lower taxes for families or the family tax credit. It is not currently in the bill. We are debating a bill that will put an additional $250 in the pockets of people earning $200,000 a year. Someone earning $45,000 or less will receive nothing.

They say it goes along with the future family tax credit. That is not going to help couples with no children, single people, and seniors who do not earn $45,000 a year. The government says that this bill will help the middle class, but it is all smoke and mirrors.

I will ask my colleague a question because I could not ask the Liberal member. What is his definition of the middle class? Is it people who earn $200,000 or people who earn $35,000, $40,000, or $45,000 and who will not get a dime with these measures?

Income Tax ActGovernment Orders

March 11th, 2016 / 2 p.m.
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Conservative

Bernard Généreux Conservative Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Mr. Speaker, I would like to thank my colleague from Rimouski-Neigette—Témiscouata—Les Basques for his question. I must admit that I rarely agree with the NDP, but I now have to sincerely agree with my colleague. What is more, we are riding neighbours. It is obvious that the definition of middle class is not people who earn $200,000 or more a year. That does not make any sense. The middle class is families who earn $35,000 to $40,000 a year, somewhere in that range. People who earn $50,000 a year or more are not part of the middle class. The middle class is people who earn small amounts of money for their family in order to survive.

I would like to come back to the question asked by the member for Hochelaga, which is an urban riding. The same problem exists in rural ridings such as ours. People do not make much money and families are having trouble making ends meet each month. That type of reality exists in our ridings.

When we develop policies, we need to do so with those people in mind. That is why the Conservatives lowered the GST twice rather than just once. We lowered it from 7% to 6% and then from 6% to 5%. That put money back into taxpayers' pockets.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

Is the House ready for the question?

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Some hon. members

Question.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Some hon. members

Agreed.

No.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

All those in favour of the motion will please say yea.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Some hon. members

Yea.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

All those opposed will please say nay.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Some hon. members

Nay.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

In my opinion the yeas have it.

And five or more members having risen:

Pursuant to Standing Order 45, the recorded division stands deferred until Monday, March 21, 2016, at the ordinary hour of daily adjournment.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

Andrew Leslie Liberal Orléans, ON

Mr. Speaker, I believe if you seek it you would find unanimous consent to see the clock as 2:30 p.m.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

Is it agreed?

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Some hon. members

Agreed.

Income Tax ActGovernment Orders

March 11th, 2016 / 2:05 p.m.
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Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

It being 2:30 p.m. the House stands adjourned until Monday, March 21, 2016, at 11 a.m., pursuant to Standing Orders 28(2) and 24(1).

(The House adjourned at 2:06 p.m.)