Bill C-30

Cost of Living Relief Act, No. 1 (Targeted Tax Relief)

An Act to amend the Income Tax Act (temporary enhancement to the Goods and Services Tax/Harmonized Sales Tax credit)

This enactment amends the Income Tax Act in order to double the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit for six months, effectively increasing the maximum annual GST/HST credit amounts by 50% for the 2022-2023 benefit year.

Cost of Living Relief Act, No. 1

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, the Conservatives are laughing right now. This is about helping some of the most vulnerable people in our country and they are laughing, so I guess the partisanship will not be put aside.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, I will be splitting my time with the member for Banff—Airdrie.

It is really hard to talk to people in my community right now because they are really struggling. They are struggling so hard to make ends meet. I was at the grocery store a couple of weeks ago, and I watched a woman from my community in the bakery aisle take a loaf of bread, look at it, put it back on the shelf, take it again, look at it and put it back on the shelf again. I knew what she was doing. She was asking herself if she could afford it.

That is the crisis our country is facing right now, and that is the level of gravity each of us should be treating the country's finances and our economic policy with right now. People in our country are asking themselves if they can afford to put another loaf of bread in their cart. I have to ask myself why, and I really want to direct this to the Liberal backbench. Why are the liberals raising taxes right now? Why would they do this? Why would they do this to that woman who is trying to figure out if she can afford an extra loaf of bread this week?

There is no reason for the government to raise taxes, yet yesterday that is what the government, the Liberals, voted to do. They voted to raise taxes. Every single member of the Liberal backbench has the ability in their caucus meetings or on their own social media platforms to push back and hold the government to account just as much as I do. We all have that right.

In January, small business owners and employers should not need to be worried about their payroll taxes increasing. Canadians, including that woman who is thinking about whether she can afford that extra loaf of bread, should not be thinking about whether their take-home pay is going to go down because the government is taking more money off paycheques. It is ludicrous. We are in a generational inflation crisis.

This is something many Canadians have never had to deal with. Before this crisis even started, the Canadian economy was on the brink. We are seeing a mental health crisis and a housing crisis, and what are the Liberals doing? They want to raise taxes. It is not just the payroll tax the Liberals voted to raise. It is also voting to raise taxes on something that will increase the cost of everything.

Let us talk about a loaf of bread. The way the Liberals and the Prime Minister have approached dealing with inflation is by saying, “Okay, Canadians, you have a loaf of bread. We are going to take it from you and give you back the crumbs.” This is what we are debating here today, and that is not right, but let us talk about that loaf of bread.

For a Canadian farmer who is growing the wheat for that bread, the Liberals want to raise taxes on the power that goes into drying that grain. What does that do to the cost of a loaf of bread? It increases it at a time when we cannot afford it and when people are asking if they can put another loaf of bread in their cart.

What about when that grain is dry? How does that grain magically get to a processing plant? It is transported. If it is transported in a truck, the fuel that goes to getting that grain to a processing plant is going to increase with this tax increase. Who pays for that? It is the person who is eventually going to buy that loaf of bread.

Once the manufacturing plant that mills the flour, which might be looking to relocate because of payroll taxes and tax increases on their input costs, such as electricity, has somehow managed to mill that flour, then the flour needs to be transported somewhere else. What is going to happen? The tax on that gas will be increased too next year, in the middle of an inflationary crisis, when people are struggling to choose whether to put another loaf of bread in their cart.

Then how is that loaf of bread going to get to the grocery store? How does that happen? It does not magically happen. It needs to be transported, again using something the Liberals are increasing the cost of. They are again raising taxes on this. Of course that increase in taxes goes through the entire system. It raises the cost of everything.

The other thing is that the Liberals try to tell people that somehow that bit of grain, that loaf of bread, can magically get from one place to another because they failed to put any sort of substitute good for carbon on the market, in spite of raising these taxes.

What have they done instead? They have raised the costs of these goods. They have made it harder for that woman to choose whether or not she is going to put that loaf of bread in her cart. They have done this while making us more dependent on countries such as Iran and Russia for their oil. Greenhouse gas emissions have risen under the government. It has to stop.

The Liberal backbench members should hold their leader to account. One of them actually said something that made sense. They were quoted in a news article after their caucus meeting, and they said something to the effect that they wished the leadership of their party would stop being so woke and focus on inflation. Now is the time.

Every single one of their community members is struggling with that question of whether or not to put another loaf of bread in their cart, and they do not want silence. Courage is lacking in that backbench right now. We should not be raising taxes. The Liberals had an opportunity yesterday to prevent the raising of taxes, yet what did they do? They voted to raise taxes. It has to stop. This is not the time to do that.

Some will say that they are spending money on x, y, and z. Let us talk about what the Liberals have been spending money on. There was a federal election in 2021 that got us a polarized electorate. It did not do anything else for the Liberals. We just found out that the Liberals spent a half a billion dollars making it easier for people in upstate New York to jump the immigration queue in Canada. The other thing the Liberals have done is spend how much money, and on what? It takes two, three, four, five, six months to get a passport, so we are seeing not only the government raise taxes in the middle of an inflationary crisis, but also service delivery being worse. This is it, and that is not good government.

What we have here is a scandal-plagued government that does not give a rip about the price of bread. The government members do not give a rip. They do not understand what people in my community or any of their communities are going through to try to make ends meet after filling up their tank of gas.

It is beyond me that the Liberals would raise taxes right now, and we will fight back. This is crazy. They should not be raising taxes in the middle of an inflationary crisis. I would ask them to give their heads a shake. This is not a game. That is what each of the members of the Liberal backbench should be saying. The Liberals have to do something to actually address the inflationary crisis, and taking Canadians' loaves of bread, trying to give them a few crumbs back and saying it is good enough is not good enough. It has to stop.

Canadians are sharing this message. Even people who voted for the Liberals in the past have said they have had enough, as one of their backbench said, of this woke stuff. They want solutions. They want a solution to the problem.

We should have energy sovereignty. We should not be waiting for OPEC+ to raise or lower production and raise the cost of energy on us because we do not have energy sovereignty here. The Liberals should be addressing the labour shortage instead of making it easier for people in upstate New York to skip the line into this country. They should be addressing that we have the poorest levels of service in government programs in generations, all while it is impossible for people to make ends meet.

We should all have had enough with the cabinet and the government's failed approach to economic growth while our country stares down the barrel of a looming recession, and it is the government's problem. It has failed to repatriate manufacturing. It has failed to inspire investment in our country. It is making it harder for women in my community to put loaves of bread in their cart.

I have had enough. People in this place have had enough, and people across the country have had enough. Tomorrow morning is their caucus meeting, so I challenge every Liberal backbencher here today to stand up and say what that one person said off the record to a reporter: Enough with the woke shit.

Mr. Speaker, I take that back. I apologize immediately for my unparliamentary language. I am very sorry.

Enough with the woke stuff and let us get on with the plan. It is right to be passionate with this. We have to do better things to protect Canadians from inflation.

[The Deputy Speaker, Chris d'Entremont]

I appreciate the retraction.

We will move on to questions and comments with the hon. member for Kingston and the Islands.

[Mark Gerretsen, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate)]

Mr. Speaker, I appreciate the member's candour. She certainly speaks with passion, and sometimes I wish I could use language like that in here too, even if just accidentally.

My question is in relation to the member's private member's bill. This member has a private member's bill on cryptocurrency. We were actually supposed to debate it the first day that the House resumed, and for some reason we did not. It got bumped.

I understand that the member's private member's bill on cryptocurrency is coming up in the next couple of days. I wonder if she could provide some insight into what her bill is about, to inform the House.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, I invite my colleague to talk to the parliamentary secretary to the Minister of Finance, who actually holds digital assets, as revealed in his ethics disclosure. I would also invite him to talk to the Minister of Finance, who approved tens of thousands of dollars for a crypto-trading platform in her home riding.

The government has talked a big game on the digital economy and now, when we are staring down the barrel of a recession, is trying to score cheap political points, when we should be trying to grow jobs through a framework that protects investors and consumers while allowing the economy to grow. However, the government does not get it, and that is a shame.

The House resumed consideration of the motion that Bill C-30, An Act to amend the Income Tax Act (temporary enhancement to the Goods and Services Tax/Harmonized Sales Tax credit), be read the third time and passed.

[Blake Richards, Conservative, Banff—Airdrie, AB]

Mr. Speaker, I used to serve as a volunteer firefighter in my community. However, one does not need to be a firefighter to know that one cannot put out a fire by pouring more gas on it. That is exactly what the Liberals have done.

They have created the worst cost of living crisis by overspending the hard-earned tax dollars of Canadians, causing a rapid increase in inflation. With inflation at a staggering 7% and economists warning about an impending economic recession, the Liberals continue to spend.

Many contend that the definition of insanity is doing the same thing over and over again and expecting different results. Here we are, with a government that overspends Canadians' hard-earned tax dollars, causing inflation. It then continues to spend while claiming that it is helping.

It has lost the plot. As we have learned recently, the Prime Minister enjoys plunging from great heights. I just wish he did not enjoy doing the same thing to the Canadian economy. The Prime Minister's determination to plunge the Canadian economy to record lows is mirrored by the enthusiasm that he showed when he recently went bungee jumping in Chelsea.

Now, the Prime Minister's recent bungee jumping trip was not brave or funny or relatable. It was actually just a metaphor for what he is doing to the Canadian economy, which is making it do a nosedive.

While the Prime Minister laughs and plays around, 23% of Canadians have reported eating less than they should have because of rising inflation at the grocery store, and 53% of Canadian households are within $200 or less of financial insolvency. Despite working hard, many Canadians have nothing to show for it. Many more are forced to walk a financial tightrope.

Continued spending will only worsen the existing crisis and squeeze even more Canadian families into financial ruin. Simultaneously, spending is racking up our national debt, which has more than doubled to almost $1.2 trillion under this Liberal government, with their spending accounting for more spending than all previous governments in Canadian history. They have actually put more onto the national debt than all other governments in this country's history combined.

That amounts to $32,000 of debt for each and every Canadian. Every hour, that debt increases by over $6 million. Every day, it increases by $144 million. Every month, we pay 2 billion dollars' worth of interest on that debt.

What exactly is the government's plan to pay down the debt they have created? Someone needs to be the adult in the room here and say that enough is enough. Perpetual spending with no end in sight is a reckless economic policy with dire consequences for this and for many future generations.

Now, with this so-called cost of living bill, finally the Liberals are at least admitting that their approach has not worked and that Canadians are suffering as a result.

Conservatives know that the government continues to collect increased GST revenue because of inflation and high gas prices. When the Parliamentary Budget Office releases its upcoming report, we will see just how much they have collected while Canadians were being forced to choose between food and fuel.

At a time when so many Canadians are struggling with high prices, the Liberal government should not be profiteering off of the crisis, especially because gas is so critical to our increasingly vulnerable supply chains, our farmers and our job-creating industries. That is why, in March, Conservatives put forward a motion to suspend the government's collection of GST on fuel. I was disheartened that not a single Liberal or NDP member voted in favour of this much-needed relief.

At least they are coming around a little now. However, the proposal in this bill is too little, too late for the Canadians who need it the most, and it is certainly a poor substitute for Conservative tax relief proposals.

First of all, what is included in this bill is only a temporary measure that lasts for only six months. I am certainly not naive enough to believe that the Liberal government is going to be able to clean up the inflation crisis that it has created and have things back to normal in that six months.

This bill also only applies to individuals who make over $49,200 and families with children that have a household income of under $58,500. Believe me, there are individuals making over $49,200 who are certainly struggling. There are even more families with children making over $58,000 that are also struggling.

More than 70% of families with children would not be eligible for this support. Even for those that are, this measure certainly falls short. For a qualifying family of four, this measure would only work out to about $77 a month. That is not even $20 per family member. It is certainly not enough to displace the cost of inflation.

In the past few weeks, Conservatives have come together and have continued to put forward realistic, responsible proposals that would help to fix the cost of living crisis. Conservatives know that one of the biggest financial burdens facing Canadians right now is the unpredictable and ever-increasing price of gas, due in part to the existing Liberal carbon tax. For many Canadians, especially rural Canadians and business owners, owning and operating a gas-powered vehicle is not a choice. It is an absolute necessity. However, the out-of-touch government continues to impose a punitive tax on them, intending to make them suffer financially. That is what it is intended to do, make them suffer financially for what Liberals consider an immoral choice, to drive a truck or a car.

When the Conservatives learned that the government was planning to go ahead with its plan to triple the carbon tax on Canadians in the middle of this affordability crisis, we fought back. Last week, in the House of Commons, we put forward a motion calling on the Liberals to have some compassion for Canadians who were struggling and cancel their plan to triple the carbon tax. Sadly, not a single member of the Liberal caucus joined us on that motion.

Similarly, Conservatives put forward a motion asking the Liberal government to commit to no new taxes on gas, groceries, home heating and paycheques. Given that our country is in an economic crisis and people are already struggling as it is, we think that would be a pretty easy motion to support. I do not think it was a very big ask at all. We were only asking the government not to increase taxes on the necessities that Canadians need to keep alive, to keep warm and to keep fed. However, the Liberals voted against our motion.

What message are the Liberals sending to Canadians? Are they planning even more tax hikes? Do they really believe that now, of all times, is a good time to raise taxes on Canadians even further?

Our party has made it clear that a Conservative government would fight inflation, fix the cost of living crisis and pay down the national debt by adhering to a responsible pay-as-you-go system. Under this system, our government would find a dollar in savings for taxpayers for every government dollar spent, returning Canada to fiscal responsibility. A Conservative government would reflect on the financial values that Canadians practice in their everyday lives by budgeting responsibly and by ensuring that we are spending wisely, finding savings wherever possible.

I do not think it is too much to ask that governments conduct themselves in the same way that we expect all Canadians to conduct themselves. Canadians, when there are tough times, sometimes have a need to put a little money on their credit card. Maybe the roof springs a leak right when they lose a job. They might have to take on a little debt just to cover that. However, once they are employed again, they are going to try to pay down that debt. That is always the first thing any Canadian would do, try to pay down the debt. Then they would undertake whatever other spending they might think is necessary for their household. They would try to pay down that debt and try to make the prudent choices.

I do not think it is too much to ask that governments do the same thing. That money comes from somewhere. It comes from Canadians. It is their hard-earned tax dollars. It is money that Canadians have worked hard to earn, to help make sure that they meet the needs of themselves and their families. Every dollar that the government takes from those Canadian families needs to be done with the mindset in government that it is only taking what is absolutely needed for the core services that government provides and to make sure that money is spent appropriately and wisely, because the government is taking away the opportunity for Canadian to make choices for themselves with their own money, so all we expect is for the government to do the same.

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

Madam Speaker, in listening to the member's comments, I think it is important that we recognize that we are debating Bill C-30, a bill that will give 11 million people in Canada a break with respect to the GST and put more money into their pockets. Every member of the House of Commons today is supporting Bill C-30. We could send a very strong and powerful message to Canadians and pass this legislation. The speech the member gave could have been given on Bill C-31, which is a bill the Conservatives oppose.

I wonder if the member could comment on this from his perspective. If he sees a bill he likes and he wants to help Canadians, should we pass it through and have more debate on Bill C-31, so we can find out what the differences are between the two sides, the governing and opposition parties. Would he agree?

[Blake Richards, Conservative, Banff—Airdrie, AB]

Madam Speaker, the member wants to know what the difference is between the Liberals and the Conservatives. I can tell him that very clearly.

The Conservatives want to ensure we take good care of the hard-earned tax dollars of Canadians. We want to make sure we are putting Canadians first and not making life more difficult for them through the kinds of things we have seen from the Liberal government. That is the difference between the Liberals and the Conservatives.

We are talking about a bill that does have the support of everyone in the House. I heard it put really well by one of my colleagues earlier today. If taxpayers have a loaf of bread, the government is going to take that bread from them and give them just a few crumbs back. That is what the government is doing. It has no compassion and no understanding of what Canadians are dealing with.

[Don Davies, NDP, Vancouver Kingsway, BC]

Madam Speaker, I am glad to hear my hon. colleague say that all parties in the House will support this bill, but I was taken aback by his attempt to make it seem like this amount of money is inconsequential. It is easy for a member of Parliament, who makes a minimum of $185,000 a year, to stand in the House to say that $500 does not mean much to someone. My daughter is an adult with special needs. She has friends who live on $15,000 a year. For someone who is earning $15,000, $20,000 or $25,000 a year, that $500 is incredibly significant.

I wonder if the member could speak to that. Would he agree with me that giving temporary relief of $500 to help fight inflation to people who make under $40,000 or $50,000 a year can make a real difference in their lives?

[Blake Richards, Conservative, Banff—Airdrie, AB]

Madam Speaker, I would first point out that the member certainly misunderstood or misconstrued my comments. I understand that. He is simply trying to justify the fact that the NDP are trying to prop up a government that does not deserve to be propped up. He has to try to justify that somehow to his voters, so I get what he is trying to do, and it is his prerogative to do that.

Having said that, is the amount of money we are talking about here going to help people? Sure it will. That is why we are supporting it. Does it do enough? No, it certainly does not do enough. There are a lot of Canadians who will not receive any support from this. There are far better ways this could be done. That is what I was trying to point out in my speech.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I would like to thank the member for Banff—Airdrie for keeping the focus on Canadians in his speech.

The Liberal member across the way was talking about Bill C-31, not Bill C-30. The Parliamentary Budget Officer will be doing an update next week on the cost of that, so I think it is important that we all wait and get that costing before we have a fair analysis of Bill C-31.

I want to reiterate the point that the member made that the government did not use the summer to do the hard work to find offsetting spending cuts so it could avoid the criticism of being more inflationary. I would like him to comment on how important it is that Canadians not only deserve support, but also have a government that does not fuel inflation and actually fights it.

[Blake Richards, Conservative, Banff—Airdrie, AB]

Madam Speaker, the member made a great point. There is no doubt that the spending the government has undertaken has led to more difficulties and more pain for Canadians with the inflation we have seen as a result of some of its actions. Canadians deserve a government that will consider what the effect would be on Canadians when it needs to spend money and try to find ways where it can find savings.

One of the policies the new leader of the Conservative Party, the Leader of the Opposition, has put forward is the idea that for every new dollar spent we find some savings, because we expect government to be run the same way we expect Canadians to run their households.

[Ryan Turnbull, Liberal, Whitby, ON]

Madam Speaker, I will be sharing my time with the member for Saanich—Gulf Islands.

I am pleased to contribute to the debate on this important legislation today. Making life more affordable for Canadians is a key priority for our government. The pandemic has been tough for everyone, and unfortunately one of the consequences has been inflation. This worldwide inflation problem has made affordability a real concern for many Canadians, including in my riding of Whitby, and especially for the most vulnerable.

We understand that there are those who are going through hard times, but this government has real solutions to the cost of living struggles of many Canadians. Overall, the government’s affordability plan is delivering targeted and fiscally responsible financial support to the Canadians who need it most, with particular emphasis on addressing the needs of low-income Canadians who are most exposed to inflation.

The government’s affordability plan includes an enhanced Canada workers benefit that will put up to $2,400 more into the pockets of low-income families. There is a 10% increase in old age security for seniors over 75, which will provide more than $800 in new support to full pensioners over the first year and increase benefits for more than three million seniors.

We are also cutting regulated child care fees in half by the end of this year. We have doubled the Canada student grant until July 2023 and are waiving interest on Canada student loans through to March 2023. The main support programs, including the Canada child benefit, the GST tax credit, the Canada pension plan, old age security and the guaranteed income supplement, are all indexed to inflation so those will be increasing as well.

Two weeks ago, the government tabled two important pieces of legislation in Parliament. The bills represent the latest suite of measures to support Canadians with the rising cost of living without adding to inflation. Bill C-31 would make it so that up to half a million children under 12 would be able to see a dentist, and low-income renters would receive a little extra breathing room with a $500 payment to help with the cost of rent.

The bill we are discussing today is Bill C-30, which would double the GST tax credit for six months. Doubling the GST credit would provide $2.5 billion in additional targeted support to the roughly 11 million individuals and families who already receive the tax credit. That includes about nine million single individuals, almost two million couples and more than half of all Canadian seniors. Just think about that. Over half of all Canadian seniors are going to be supported by this measure.

The GST tax credit is indexed to inflation on an annual basis. For the July 2022 to June 2023 benefit year, the value of the GST credit grew by 2.4%. However, because these increases are based on the inflation rate from the prior year, the sharp rise in inflation in 2022 is not yet reflected in the GST credit payments that Canadians are currently receiving. This is why the extra top-up is the right thing to do at this particular time, because Canadians are not going to get the benefit of an increased GST tax credit payment until the following year. It is a good thing that we are topping it up.

Single Canadians without children would receive up to an extra $234, and seniors would receive an extra $225 on average. I have another example of how it would work. A single mother with one child and $30,000 in net income will receive $386.50 for the July through December 2022 period, and another payment of the same amount for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, she would receive an additional $386.50. In total, she would be receiving about $1,160 this benefit year through the GST credit.

A couple with two children and $35,000 in net income would receive $467 for the July through December 2022 period and another $467 for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, this family would receive an additional $467. In total, it would receive $1,401 this benefit year through the GST credit.

The proposed extra GST credit amounts would be paid to all current recipients through the existing GST credit system as a one-time lump sum payment before the end of the year, pending, of course, the adoption of the legislation. This highlights the importance of getting this done as quickly as possible, as we all can agree Canadians are feeling the pressures of inflation and the cost of living increases.

Importantly, recipients would not need to apply for the additional payment, but should make sure to file their 2021 tax returns, if they have not done so already, to be able to receive the current credit and the additional payment. Bill C-30 and the other important measures I mentioned would deliver targeted support to the Canadians who need it most without adding unnecessary fuel to the fire and allow inflation to become entrenched. That is a major concern, and we do not want inflation to become entrenched. That is something that would in fact be counterproductive and make life more expensive for everyone for years to come.

However, we cannot compensate every single Canadian for rising costs driven by global events. To do so would make inflation worse. Bill C-30 is about balancing fiscal responsibility with compassion. This support is the right thing to do at the right time. Even as we deal with the very real challenges that the global economy is facing right now, it is important for us to take real comfort in the reality that Canada has a very strong economic foundation as we face these global challenges.

Canada has the lowest deficit this year in the G7. Canada has the lowest net debt-to-GDP ratio in the G7, and Canada’s AAA credit rating was reaffirmed this year by Moody's, S&P and DBRS. The International Monetary Fund and the Organisation for Economic Co-operation and Development predict that Canada’s recovery will be the second fastest in the G7 this year and next. That is a pretty good track record.

The government’s affordability plan has already been putting more money back in the pockets of Canadians who need it most. We will continue to provide timely support where it is needed most, all while maintaining fiscal discipline.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Madam Speaker, we certainly welcome and are pleased with this new GST credit, because the Bloc Québécois has been asking for it for several months and the government was refusing to listen.

That being said, my constituents, who are struggling to make ends meet, buy groceries every week, pay their rent every month and fill up regularly at the pump. How is it that the government has not yet thought to send households their GST rebate checks on a monthly basis, so they can receive the money quickly, at the same time they incur their costs?