moved that Bill C-4, An Act respecting certain affordability measures for Canadians and another measure, be read the second time and referred to a committee.
Madam Speaker, I would first like to thank my colleagues. I also see a big smile on the opposition side.
Congratulations on your election. I am pleased to see you presiding over our meetings. I appreciate the work you are doing and the professionalism and honour you bring to this position.
It is my privilege to rise and take part in today's debate as we begin the very important second reading of Bill C-4, the making life more affordable for Canadians act.
I would note that the House has voted unanimously for the ways and means motion. This is a good start. It is a new Parliament, a new government and a new era of doing big things quickly.
Canadians asked for a serious plan to change how we address the rising cost of living, which has eroded their quality of life over the past few years. They are calling for change that will put more money in their pockets, build the strongest economy in the G7, build one Canadian economy, not 13, and build a more affordable Canada. With Bill C‑4, our government is delivering on this mandate for change.
Bill C‑4 will implement the middle-class tax cut our government promised. It will give more than 22 million Canadians a tax break. It will save two-income families up to $840 a year, starting in 2026.
With the adoption of the legislation, the lowest marginal personal income tax rate would be reduced from 15% to 14% effective July 1, 2025. This is great news. I can hear my colleagues cheering because they reflect the Canadians who are cheering at home for that. I see the same thing from the Conservatives. They are cheering silently on the other side of the House.
The tax cut would help hard-working Canadians keep more of what they earn and build a strong future for themselves, their families and their communities. The benefit of the tax cut would go to those hard-working Canadians who need it most. This means that the bulk of the tax relief will go to those with income in the two lowest tax brackets, with nearly half of the tax savings going to those in the lowest bracket.
What is more, Bill C-4 would start delivering tax relief almost right away. With the announcement of our middle-class tax cut, the Canada Revenue Agency can update its source deduction tables for the July 2025 to December 2025 period so pay administrators are able to reduce tax withholdings as of July 1.
That means that individuals with employment income and other income subject to source deductions could begin to have tax withheld at the lower 14% tax rate as of July 1. That is excellent news.
This middle-class tax cut is expected to provide $2.6 billion in tax relief to Canadians over the next six months and $5.4 billion in 2026. The middle-class tax cut is expected to deliver over $27 billion in tax savings to Canadians over five years starting in 2025-26. That is just the first step in putting more money back in the pockets of Canadians.
We have more good news. This is a great day to be a Canadian, because the next aspect of the bill is eliminating the GST for first-time homebuyers on new homes up to $1 million.
There is a lot to be cheering for. I can see, in the smiles of my colleagues, that they are cheering. It is a great Friday for the opposition as well.
It used to be that the federal government helped build the housing that our growing population needs in this country. The last time we faced a housing crisis on such a broad scale was after the Second World War. In the face of crisis, Canada did what we do best as a nation: We came together, got to work, and put a roof over the head of tens of thousands of families.
Canadians want their government to get back to the business of building homes, and that is what we are going to be doing. That is why one of the first decisions of our government was to eliminate the GST for first-time homebuyers on the purchase of a new home valued up to $1 million. The new first-time homebuyer GST rebate would mean upfront savings of up to $50,000 on the purchase of their first home.
That is not all. There is really great news in the bill: The rebate would also lower the GST on homes between $1 million and $1.5 million for first-time homebuyers. There is a lot to celebrate in helping Canadians.
As my colleagues in the House know, buying a home is often the largest purchase most Canadians will make in their lifetime. Purchasing a home is more than just a financial investment. Often, it is an investment in their future and their family. It is an investment in their retirement, their peace of mind and their comfort. It is an investment in the Canadian dream.
By supporting Bill C-4, we would be providing a significant increase to the already substantial federal tax support available for first-time homebuyers through programs like the first home savings account, the RRSP home buyers' plan, and the first-time home buyer's tax credit.
By so doing, we will enable more young people and families to make their dream of home ownership come true, and we will enable more Canadians to begin investing in their future, their family, their retirement, their peace of mind and their comfort.
Bill C-4 is just the first step in our ambitious plan to build more homes and ensure that the housing market serves Canadians, rather than vice versa. We will build on our GST cut for first-time homebuyers with a credible plan to build more homes, a true team Canada approach that will build the future of this country and help build the strongest economy in the G7. I want to applaud the work of my colleague, the Minister of Housing, who is going to do a great job in helping to build more homes in this country.
I see that my Conservative friends are very excited, because there is a third measure that I am sure they are going to be cheering in their hearts and minds, and they are going to put it in their householder to make sure all Canadians are aware. We are going to be removing the consumer carbon price from Canadian law. In their hearts, I am sure they are going to be cheering, silently I must say this morning, but silently cheering because, as we know, the first thing that the Prime Minister did upon assuming his responsibilities was to suspend the application of the federal consumer carbon tax, effective April 1 of this year.
This was a moment for this country. Cancelling the consumer carbon tax was the first step in our government's plan to ensure that Canadians can keep more of their hard-earned money. While it was effectively accomplished through government regulations, Bill C-4 would take the necessary step beyond regulatory suspension of the fuel charge by completely removing the consumer carbon price from law.
At the same time, we will refocus federal carbon pollution pricing standards on ensuring carbon pricing systems are in place across Canada on a broad range of greenhouse gas emissions from industry.
This means that a price on pollution for large emitters will continue to be a pillar of Canada's plan to build a strong economy and a greener future for our kids. We will ensure a system that is fair and effective. Industrial carbon pricing is one of the most important greenhouse gas emissions reduction policies in the government's comprehensive emissions reduction plan to bend the emissions curve and meet our 2030 greenhouse gas emissions reduction target.
Overall, the measures included in this bill will pave the way for economic growth in Canada. Our government has a plan to help Canadians keep more of their hard-earned money. It is a plan to protect them from the worst effects of the unjustified trade war, a plan to build the strongest economy in the G7, a plan to build more than anyone could ever take away from Canadians.
Our plan is based on a new approach, where we spend less on government and invest more in the people and businesses that will grow our economy. Canadians elected the current government to stand up for our country and to build a strong economy that works for everyone. Canadians voted for change.
Change means adjusting the way we do things, taking advantage of new technologies and saving money so we can invest more.
It means focusing on results for Canadians and making sure that they get what they expect from their government. It is time for Canada to have a government that focuses on maximizing investments that drive growth and deliver results. Excellence and efficiency must guide all government actions.
Canada is the best country in the world. America's unjustified trade war is an attempt to weaken us, and our sovereignty is under threat. We will not let that happen. We will fight it every step of the way. We will stand up for Canadians, our industries and our workers. It is time to build a future that makes Canada strong, and Bill C-4 is the first step in doing that for our nation.
I encourage all of my colleagues to support the first steps of our plan to build a strong Canada by voting in favour of this bill.
We are the true north strong and free, and we should all be proud to be Canadians.