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

[Eric Melillo, Conservative, Kenora, ON]

Mr. Speaker, I am going to pick up where my Liberal friend from Guelph left off in talking about seniors. The seniors in my riding have been telling me about how the rising cost of living is making it very difficult for them when they buy things like gas and groceries, as these are becoming more expensive. We know the carbon tax plays a roll in exacerbating those prices and driving up those costs even more.

Would my colleague agree with me that the government should look at scrapping the carbon tax or at least freezing the carbon tax increases in the new year to help seniors and those struggling to get by?

[Luc Desilets, Bloc, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I understand that this issue is important to the Conservatives, but I am not at all convinced that it is the key. The carbon tax is seen differently in different parts of Canada.

The Bloc Québécois has found other solutions that would help seniors. That is the answer to the first part of my colleague's question. I am extremely grateful that a young fellow like him is so concerned about us older folks.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, I am really glad to see that everybody in this House supports an NDP proposal to double the GST tax credit to help people who have been the hardest hit by inflation.

We have been hearing from Conservatives all day about getting rid of the carbon tax, yet they forget to talk about taxing the oil and gas companies, which are having record profits while prices at the pump are skyrocketing. In Great Britain, the Conservative government there went and charged a 25% excess profit tax and gave it back to people who live there.

Does my colleague not agree that the Conservatives just do not want to talk about making the big oil corporations pay their fair share and taking a load off everyday taxpayers? Instead, they want to scrap a tax that is an investment. It goes back to eight out of 10 Canadians. We want to make sure polluters pay their fair share. Maybe my colleague can speak to that.

[Luc Desilets, Bloc, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I thank my colleague for that interesting question.

Indeed, there has been a lot of talk about oil in the House today and in the past few months. The Liberal government has and would have had a great opportunity. Obviously this would never come from the Conservatives, but the oil companies' profits soared over the past few months, and the Liberal government refused to take a cut.

That is too bad because we are not talking about millions of dollars, but billions of dollars. A small cut of that amount could easily help our seniors, the people who always lose out and get overlooked in our system.

[Kody Blois, Liberal, Kings—Hants, NS]

Mr. Speaker, I will be sharing my time with my hon. colleague from Whitby. Tonight is the first time since June that I have formally risen in the House. I would like to begin by greeting my colleagues. I hope that they had a great vacation and summer in their ridings with their families and constituents.

We are here tonight to debate Bill C‑30 which, along with Bill C‑31, represents a suite of federal measures to make life more affordable for vulnerable Canadians.

I think it is very important to put things in context. Over the last couple of years, we have seen the effects of supply chains that have been rocked by the pandemic. There have been weather events. Of course, there is the war in Ukraine, caused by Russia's invasion. There are also demographic changes. The economy, in Canada and in other countries, is very robust. Unemployment is very low, and that creates inflation in Canada and around the world.

I quite appreciated my colleague from the Bloc Québécois who talked about this being a supply-side economic issue. That is what I was trying to mention, while working on my French. Hopefully it came through in the translation. The fact is that some of what we are seeing right now is being driven by factors outside of Canada that relate to the products, goods and services that we, as global citizens, want to make sure we have as Canadian consumers. It comes down to two issues when we are talking about economics and affordability. The Bank of Canada has a role with respect to monetary policy and setting interest rates and trying to keep inflation to around 2%, and the Government of Canada has a role and obligation that pairs with that, albeit independent of the Bank of Canada, which is around fiscal policy.

It was mentioned today in the House, I do not think it needs to be repeated, that it is important that all parliamentarians respect the independence of the Bank of Canada and its expertise in setting monetary policy. Our job here of course is to perhaps understand the implications of those decisions, but to really focus on the government's fiscal decision-making as it relates to and couples with monetary policy. We have seen the Bank of Canada acting. It has increased its benchmark rate, which is having an impact on Canadians. It is quelling some of that demand. In fact, we are looking at forecasts right now with respect to trying to avoid a recessionary period, not only in Canada but indeed around the world.

I had the opportunity to review the decision by the Federal Reserve in the United States, which has significantly increased its interest rate. There will be a conversation that will have to be had by the Bank of Canada as to whether or not it will match that rate, such that we are not impacted from a consumer side with respect to imports and the value of the American dollar going higher, or whether or not we will try to pair a bit lower, such that our exporters can benefit with respect to that economic side. It is complex. I do not pretend to stand here as a pure economic theorist, but those are the decisions that are being made right now.

That brings us to this conversation on affordability, because we know particularly vulnerable Canadians are struggling right now. During the pandemic, I will remind members, the government was there to help support the small businesses and individuals who were impacted the most. As we come out of COVID–19, as we move beyond the pandemic, it is also our responsibility to look at the situation and be able to rein in government spending.

I will go on record to say, and it has not really been talked about here in the House, particularly by His Majesty's loyal opposition, that the government is actually in a surplus situation. I think that is pertinent right now given the fact the government has had to spend. It would be unwise if the government had not stepped up and provided that economic support at that time of uncertainty to make sure our economy continued to function and move forward, and indeed to set the stage for where we are at right now.

Again, it is Keynesian economics at its core. Government spends during a down period when help is needed and then reins back spending when the economy is strong, as is happening right now.

How do we try to help support Canadians without impacting what the work of the Bank of Canada is doing right now, which is to try to bring down demand? I think it is what we doing right now with Bill C-30 and Bill C-31, which are targeted measures. These are not just spending measures to provide support to all Canadians, including some of those who are the most wealthy. This is targeted to those who really need help the most.

I want to give some context to what we are talking about today. Bill C-30 proposes to double the GST credit for the next six months for both individuals and families who are eligible. That is about 11 million Canadians. The benefits at an individual level would be for someone without children with a household income under $49,000. That is what we are talking about in terms of providing very targeted support to those who need it. For those who have families, the example would be under $58,000. For anything above and beyond that, these individuals would not necessarily be eligible for these supports.

It is extremely important because it is targeting those who need the help without impacting Canada's fiscal position. This is a $2.5-billion spending measure. That is not insignificant, but it is not going to disrupt the work that the government is doing to rein in spending, at the same time understanding that the Bank of Canada has a mandate to bring down inflation. Indeed, in some contexts of what we hear His Majesty's loyal opposition calling for, the government is doing it. Perhaps that is not the narrative they want to spin, but we are working to do just that.

I just want to take a moment to speak about Bill C-31. I understand it is a different piece of legislation, but they are interconnected. This is about providing affordability measures on housing with a $500 housing benefit for those who are vulnerable, and providing dental care. We have heard great impassioned debate and context about how important this is. The dental care is for children who are under 12 whose household income is under $90,000 and who do not already have private insurance coverage.

Right now, conversations continue on how best to deliver this. I have asked some questions in the House of my NDP colleagues. There is merit in working out program delivery with the provinces, who are closest on the ground, who are going to be able to be there to help implement this and who would have relationships with dentists. I understand that right now this is an interim stop-gap measure to help provide that support to families.

I, as a parliamentarian, may disagree with the NDP assertion that this should be a federally administered program. Perhaps it should be for indigenous communities, where the Government of Canada shares a very close constitutional relationship. I think that is clear. Perhaps it should be for military families if there is a way to roll that out through the Department of National Defence and the Canadian Armed Forces. Otherwise, this is best suited for the provincial level.

I recognize that my time is coming to a close this evening. What I way to say and what I want to reiterate is that I think these measures are reasonable, balanced and targeted to Canadians who need the support the most. We are in a situation where there is some level of economic uncertainty. Inflation is coming down. The Bank of Canada is doing its work. The government is responding in a responsible manner to not drive additional liquidity at a time when the Bank of Canada is reducing its interest rates accordingly.

I look forward to the conversation and the questions from my colleagues here tonight.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, I appreciated my hon. colleague's speech, and I appreciated that I heard, twice, his use of the phrase “rein in spending”.

Earlier in this debate, I asked our colleague, the member for Ottawa Centre what the government's plan was going forward and whether it was more of a series of one-off payments in response to inflation. I am encouraged to hear the beginnings of a plan through the phrase of “rein in spending”.

Where would my hon. colleague envision this reining in of spending occurring?

[Kody Blois, Liberal, Kings—Hants, NS]

Mr. Speaker, I certainly appreciate the candour of my hon. colleague opposite. We have a great working relationship on the agriculture committee.

There is a whole host of areas I could look at it, but what I want to reference is when the Deputy Prime Minister and Minister of Finance tabled her budget. There is a plan to undertake about nine billion dollars' worth of spending efficiencies that the government is hoping to accomplish. There is probably a number of areas where that could happen. We are talking about a budget, in normal times, that would be around $370 billion. I do not want to label any one specific program; I think that would be inappropriate. However, I think there is room for the government to look at measures on efficiency and to rein in spending, similar to what we are asking Canadians to do. We know this has been a challenging time.

We are going to do that responsibly. I will certainly look forward to the government's work on that. I am happy to take any suggestions if the member has some areas where he thinks that is particularly important.

[Andréanne Larouche, Bloc, Shefford, QC]

Mr. Speaker, I thank my colleague from Kings—Hants for his speech, in which he touched on housing, which is an important issue. There is no denying that, with the ongoing inflationary crisis, this is one budget category that has grown even more than most.

Still, I am fascinated by the Liberal government's lack of long-term vision and its propensity for sending out cheques as a form of one-time support.

As the Bloc Québécois critic for seniors, I have seniors getting in touch with me to say they cannot afford enough to eat. They see inflation driving grocery prices higher and higher. Does my colleague from Kings—Hants really think that a one-time cheque for $500 will help seniors? Would it not be better to consider a long-term solution such as increasing old age security significantly and permanently? I would like my colleague to comment on that, because I honestly do not think that $500 will do much for seniors.

[Kody Blois, Liberal, Kings—Hants, NS]

Mr. Speaker, I thank my colleague for her question.

The housing issue is a very complex one. The private sector and municipal and provincial governments must be part of the solution.

Of course, the Government of Canada has a role to play and must help by implementing certain programs. However, it is above all a municipal responsibility. To some extent, the problem is rooted in the labour shortage and the supply chain.

With respect to old age security, a $110-a-month increase for every senior is definitely possible. However, such a measure would cost $10 billion per year and per budget. I understand the importance of seniors, but at the same time, it is important to think about balancing the budget.

[Leah Gazan, NDP, Winnipeg Centre, MB]

Mr. Speaker, yes, inflation is the problem, and we can guess who is paying for it. It is everyday people, but there are solutions. For example, we have big corporations and CEOs who made record profits during the pandemic. They are not paying for it; that is a choice. Do members know who is paying for it? It is single parents getting clawbacks to their Canada child benefit. That is who is paying for it. It is everyday people who are paying more for bread. While Galen Weston, the CEO of Loblaws, makes $5,100 an hour, the cost of bread is going up.

I am wondering why the Liberal government does not go after all these greedy corporations that are making record profits. Stop making excuses and do not make everyday people pay. Make corporations finally pay their fair share.

[Kody Blois, Liberal, Kings—Hants, NS]

Mr. Speaker, I will try to keep it short.

Those things are exactly what we did in this last budget, where we increased the expectations on banking and insurance companies. We expect them to able to contribute a bit more during this period, so we are doing some of the measures the member opposite is suggesting. I am not going to do it on a class warfare basis and criticize people who are successful. We certainly take the view on this side that we want to increase taxes on the super-rich in this country. That is what we have done, but we can do it in a tactful way instead of just attacking individuals and corporate entities across the board in this country.

[Ryan Turnbull, Liberal, Whitby, ON]

Mr. Speaker, I appreciate the opportunity to participate in today's debate on Bill C-30, the cost of living relief act, no. 1. As my colleague has already mentioned, inflation is a cause for concern for Canadians and their families. While inflation is definitely a global challenge, the impacts on Canadians are nonetheless real, which is why our government has been working directly to help Canadians have more money in their pockets.

Investments we have already made in the last two federal budgets and the new measures in today's legislation and in Bill C-31 will help Canadians who need it most. For example, the government's $12.1-billion affordability plan includes doubling the GST credit for six months, as proposed in Bill C-30. This would provide $2.5 billion in additional targeted support this year, to roughly 11 million individuals and families who already receive the tax credit. It will also enhance the Canada workers benefit at a cost of $1.7 billion in new support for workers this year to put up to an additional $2,400 in the pockets of low-income families. As well, there is a 10% increase to old age security for seniors over 75, which will provide up to $766 more for seniors. That will impact over three million seniors this year alone.

The affordability plan includes cutting child care fees by an average of 50% by the end of this year. Looking at the child care fees in my riding, for example, families are paying $1,800 a month per child, at least. When we think about it, a 50% reduction in fees means $900 back in the pockets of those families, not to mention that in some families, both parents do not go back to work. This, in essence, supports families in having two incomes. That is almost a mortgage payment for many families.

Dental care is another one that we have added to the affordability plan for Canadian families earning less than $90,000 a year, starting this year with hundreds of thousands of children under 12. That will obviously be extended to seniors and individuals with disabilities in years to come.

We also must remember that our affordability plan has indexed to inflation a number of benefits, including the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement. The federal minimum wage, which we increased to $15 an hour, is also indexed to inflation. Also, a $500 payment will go out to 1.8 million Canadian renters this year who are struggling with the cost of housing.

I want to talk a little bit about the housing challenges that we have experienced and some of the solutions. My colleagues have already eloquently touched on some of the aforementioned points, including the doubling of the GST credit for six months that is proposed in Bill C-30. I would like to focus my remaining time on the housing measures proposed in Bill C-31, introduced by the Minister of Health earlier this week, which is a critical component alongside Bill C-30 in making life more affordable for Canadians.

Our government believes that everyone should have a safe and affordable place to call home. However, that goal, one that was taken as a given for many previous generations, is increasingly out of reach for far too many Canadians. Young people cannot imagine being able to afford the house they grew up in. Rents in our major cities continue to climb, pushing people further and further away from where they work. All of this has an impact on our economy as well.

This is why Bill C-31 proposes a one-time top-up to the Canada housing benefit program that would consist of a tax-free payment of $500 to provide direct support to low-income renters. This payment would provide direct help to those most exposed to inflation and those who are experiencing housing affordability challenges. With the support of this House, the payment would be launched by the end of the year. Specifically, the benefit would be available to renters with adjusted net incomes below $35,000 for families, or $20,000 for individuals.

The Canada Revenue Agency would deliver the money through an attestation-based application process. In order to determine eligibility, the CRA would proceed with an up-front verification of the applicant's income, age and residency for tax purposes. Applicants would need to have filed their 2021 tax return and provide information and attest that they are paying at least 30% of their adjusted net income on rent, are paying rent for their own primary residence in Canada, which would include the address of the rental property, the amount of rent paid in 2022, and the landlord's contact information, as well as consent to the CRA to verify their information to confirm eligibility.

It is estimated that 1.8 million low-income renters, including students, who are struggling with the cost of housing would be eligible for this new support. In total, the proposed funding will be $1.2 billion, of which $475 million were committed in budget 2022. This is a one-time top-up and would not reduce other federal income-tested benefits, such as the Canada workers benefit, the Canada child benefit, the GST credit and the guaranteed income supplement.

That is not to say this is our only measure that impacts people who are having affordability challenges with housing. The one-time top-up is part of a broader set of initiatives introduced in budget 2022, indeed probably the largest chapter in the federal budget, that will provide more than $9 billion to help make housing more affordable, including by alleviating the supply shortages that are one of the main causes of the high price of housing. These are measures that will put Canada on the path to double our housing construction over the next decade, including with a new multi-billion dollar housing accelerator fund.

Our government has a comprehensive plan to make housing more affordable by both funding and incentivizing new builds and by helping people get into the housing market.

We are, for the first time, directly tying federal funding for infrastructure in transit to a requirement for municipalities to approve the building of more homes. All of this is in addition to further investments in affordable housing, the building of new social housing units and an additional investment of half a billion dollars to help end homelessness.

While no government can solve the challenges of affordability overnight, we remain hard at work to address the cost of living and set Canadians up for greater success. We are also doing so by laying the foundation for longer-term economic growth.

What today's legislation means is that most of our most vulnerable in Canada will receive more financial support now and, when combined with other measures in our affordability plan, will continue to receive new support in the weeks and months to come.

For the Canadians who need it most, this will make their lives more affordable exactly at the right time. This is why I strongly encourage all members of the House to support Bill C-30.

[Eric Melillo, Conservative, Kenora, ON]

Mr. Speaker, I want to pick up on something the hon. member mentioned right at the beginning and that is inflation being a global phenomenon. I am not going to dispute that. We know that other countries are facing inflation as well. The part the member forgot to share was the fact that, in the countries that are spending more money, we see the correlation of higher inflation such as we are experiencing here in Canada. The PBO has confirmed that. Economists across the country have confirmed that as well. The government continues to ignore the fact that higher government spending leads to higher inflation.

I am wondering if the member would like to take this opportunity to acknowledge that this government spending has exacerbated inflation and has made it far worse than it ever had to be here in Canada.

[Ryan Turnbull, Liberal, Whitby, ON]

Mr. Speaker, I am glad to hear an hon. member on that side of the House acknowledge that inflation is indeed a global problem and also acknowledge that Canada fares much better than many of our peer countries around the world.

Inflation obviously is a challenging problem and the inflationary pressures that we see today are not just the result of pandemic relief spending, which I know the Conservatives continually purport in the House, falsely. I really believe that Canada has been set up for success. That is why we have seen the economic growth and the job recovery rate. In comparison to our peers, we are faring much better in terms of job recovery and growth. We really have set ourselves up to come out of the dip in our economy from the pandemic. We have seen a strong V-shaped recovery. Now we have to work on labour challenges, supply chain disruptions, etc.

I do not believe that these new affordability measures will increase inflation.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Speaker, no one can be against sucre à la crème, but the proposed measures are temporary, whereas the problems are permanent.

My hon. colleague said earlier that housing construction would double. First, since there has been a shortage of 100,000 units per year since 2016, does that mean that, basically, 200,000 units will be built per year?

Second, will these still be $2,500 units with a 10% discount?