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.”.

Finance Committee, on April 12, 2016

  • Trevor McGowan, Senior Legislative Chief, Tax Legislation Division, Tax Policy Branch, Department of Finance
  • Miodrag Jovanovic, General Director, Tax Policy Branch, Department of Finance

Finance Committee, on April 14, 2016

  • Clerk of the Committee, Ms. Suzie Cadieux
  • Craig Alexander, Vice-President, Economic Analysis, C.D. Howe Institute
  • David Macdonald, Senior Economist, National Office, Canadian Centre for Policy Alternatives
  • Wanda Morris, Chief Operating Officer, Vice-President of Advocacy, Canadian Association of Retired Persons
  • Bruce Ball, National Tax Partner, BDO Canada LLP, and Member, Tax Policy Committee, Chartered Professional Accountants of Canada
  • Angella MacEwen, Senior Economist, Social and Economic Policy, Canadian Labour Congress
  • Matthew Stewart, Associate Director, Economics, Conference Board of Canada
  • Charles Lammam, Director, Fiscal Studies, Fraser Institute
  • Kevin Milligan, Professor, University of British Columbia, As an Individual

Finance Committee, on April 19, 2016

  • Stephen S. Poloz, Governor, Bank of Canada
  • Carolyn Wilkins, Senior Deputy Governor, Bank of Canada
  • Jean-Denis Fréchette, Parliamentary Budget Officer, Library of Parliament
  • Mostafa Askari, Assistant Parliamentary Budget Officer, Office of the Parliamentary Budget Officer, Library of Parliament
  • Chris Matier, Senior Director, Economic and Fiscal Analysis and Forecasting, Office of the Parliamentary Budget Officer, Library of Parliament
  • Scott Cameron, Economic Advisor, Analyst, Economic and Fiscal Analysis, Office of the Parliamentary Budget Officer, Library of Parliament
  • Jason Jacques, Director, Economic and Fiscal Analysis, Office of the Parliamentary Budget Officer, Library of Parliament
  • Helen Lao, Economic Analyst, Economic and Fiscal Analysis, Office of the Parliamentary Budget Officer, Library of Parliament

Finance Committee, on April 21, 2016

  • Nicolas Zorn, Policy Analyst, Institut du Nouveau Monde
  • France St-Hilaire, Vice-President, Research, Institute for Research on Public Policy
  • Michael R. Veall, Professor, Department of Economics, McMaster University, As an Individual
  • Jack Mintz, President's Fellow, School of Public Policy, University of Calgary, As an Individual