Bill C-4

Making Life More Affordable for Canadians Act

An Act respecting certain affordability measures for Canadians and another measure

Part 1 amends the Income Tax Act to reduce the marginal personal income tax rate on the lowest tax bracket to 14.5% for the 2025 taxation year and to 14% for the 2026 and subsequent taxation years.
Part 2 amends the Excise Tax Act and other related Regulations to implement a temporary GST new housing rebate for first-time home buyers.
Part 3 repeals Part 1 of the Greenhouse Gas Pollution Pricing Act and the Fuel Charge Regulations .
Part 4 amends the Canada Elections Act to make changes to the requirements relating to political parties’ policies for the protection of personal information.

Making Life More Affordable for Canadians Act

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, my Conservative colleague is asking an excellent question.

I cannot say that I have a clear answer to that question. The problem is that, if we get rid of the GST on new homes and for everyone, for first-time homebuyers and for other buyers, it might lead to higher prices. Often, people will offer the maximum amount they can afford in order to purchase a home, particularly in a context where there are bidding wars and where demand exceeds supply.

I am not totally convinced that this expansion would help first-time homebuyers. By limiting this measure to first-time home buyers, we are giving an advantage to people who do not yet own a home. I think that measure is well thought out.

We would need a more in-depth economic analysis to know if it should be extended to everyone else. That way, we would determine the impact of that decision on the market.

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

Madam Speaker, as my colleague knows, the federal Liberals pulled out of the national housing strategy in 1992. We know that Canada and Quebec only have 3.4% non-market housing. We also know that non-market housing has to be a critical piece for tackling affordability when it comes to housing. At 3.4%, we have one of the lowest rates in the OECD, and there is nothing in the bill for co-op housing, housing geared to income, seniors' housing and housing for the most vulnerable, the homeless and youth coming out of care.

Does my colleague see that the government is failing when it comes to dealing with the affordable housing crisis? All we hear from Conservatives and Liberals is that the free market and supply are going to solve the problems of non-market housing, but we know that is not true.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, that is also a very good question.

We specifically mentioned a target in our election platform. If I am not mistaken, that target was approximately 20% of non-market housing. If this goal were reached, it would lead to a significant number of non-market homes, which could greatly improve the situation and help many people who do not have the same financial means as others.

At the moment, the percentage of non-market homes is 3.5%. That is ver low and has no real effect on the rest of the market. The reality is that when there is non-market housing that is protected from speculation, there are people who are able to put a roof over their heads at a reasonable price. When that number becomes high enough, it ends up having an effect on the rest of the market. It leaves people wondering why so many people are able to pay a reasonable price while others take advantage of the situation and charge excessive prices.

Something really needs to be done about non-market housing. That is not to say that there is no place at all for the private sector. I think it is also important to respect the initiative of entrepreneurs who want to build housing. However, the government needs to provide a framework and invest to help those who cannot afford housing in the current market.

[Bardish Chagger, Liberal, Waterloo, ON]

Madam Speaker, let me begin by saying that I will be sharing my time with the member for Mont-Saint-Bruno—L'Acadie.

It is indeed an honour and privilege to represent the amazing people of the riding of Waterloo and to speak to a bill that is really important and that many constituents have been speaking about. I appreciate the opportunity to take part in today's second reading debate on Bill C-4, the making life more affordable for Canadians act.

In the government's Speech from the Throne, we outlined our bold and ambitious plan for the future, and central to that plan is bringing down costs so Canadians can keep more of their paycheques to spend where it matters most. To make that happen, we introduced the making life more affordable for Canadians act, which is before us today for consideration. The debate has been fruitful; it has been good.

This legislation, upon receiving royal assent, would legislate the delivery of our government's middle-class tax cut, providing tax relief for nearly 22 million Canadians and saving families up to $840 a year in 2026. It would also provide for the elimination of the GST for first-time homebuyers on new homes valued up to $1 million, saving them up to $50,000. It would do so while also lowering the GST for first-time homebuyers on new homes valued between $1 million and $1.5 million. Last but not least, it would legislate the removal of the consumer carbon price from law following its cancellation, effective April 1, 2025. However, this does not remove our responsibility to take the environment seriously.

I want to take a moment to consider each of these aspects of the bill.

To begin, the bill would implement our government's middle-class tax cut. This means that with the support of this House and the adoption of this legislation, the lowest marginal personal income tax rate would be reduced from 15% to 14%, effective July 1. As we have made clear, this tax cut would make hard-working Canadians keep more of their paycheques to spend where it matters most. This means more for groceries, more for kids, more for housing-related costs, more for what matters most.

As we have also made clear, most of the benefits of this tax cut would go to hard-working Canadians who need it most. That is because the majority of relief would go to Canadians with incomes in the lowest two tax brackets, which is to say those with taxable incomes under $114,750 in 2025. Within that group of hard-working Canadians, nearly half of the tax savings would go to those in the lowest tax bracket, those who earn $57,375 or less in 2025. This means the tax savings for a middle-class tax cut would go where they will make the greatest difference. However, these tax savings would not just go out to those who need them the most. They would also go out when they are needed most, which is almost right away, starting on Canada Day. That is less than a month away.

We can deliver these tax savings to Canadians expeditiously, because with the announcement of our middle-class tax cut, the Canada Revenue Agency has updated its source deduction tables for the July to December 2025 period so that employers and pay administrators are able to reduce tax withholdings as of July 1. This 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 soon as Canada Day.

Just to start with, 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, which would be the first full year when the tax rate is at 14%. Going forward, 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 the first element in Bill C-4 and the first set of reasons it merits our support.

The next reason for lending our support to this legislation is that it would eliminate the GST for first-time homebuyers on purchases of new homes valued at up to $1 million. The first-time homebuyers GST rebate would mean upfront savings of up to $50,000 for Canadians on the purchase of their new home. The rebate would also mean that first-time homebuyers would pay less GST on new homes valued between $1 million and $1.5 million. In short, the rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million. Just to explain, under this linear phase-out, a new home valued at $1.25 million would be eligible for a rebate at 50% of the maximum first-time homebuyers GST rebate of $50,000, which would still mean savings of up to $25,000.

By supporting Bill C-4, we would be providing a significant increase to the already substantial federal tax support available to first-time homebuyers through programs such as the first home savings account, the RRSP homebuyers' plan and the first-time homebuyers' tax credit. By doing so, we would be helping more young people and more families achieve their dream of home ownership.

We all know that a home is more than just a roof over our head. It is a place to build our life, a family and equity toward priorities such as retirement. As such, it is the largest and most important purchase people make. We often talk about it. Saving first-time homebuyers tens of thousands of dollars on that investment is the second good reason the bill merits our support.

The third reason is that it would completely remove the consumer carbon price from Canadian law. As hon. members are aware, one of the first things the Prime Minister did upon assuming his responsibilities was to cease the application of the federal consumer fuel charge, effective April 1 of this year. While this was effectively accomplished through government regulations, Bill C-4 would take a further step by completely removing the consumer carbon price from Canadian law.

At the same time, it is important to bear in mind 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. Canada's emission reduction plan contains a comprehensive suite of mitigation measures, strategies and investments, and that includes a price on pollution for large industrial emitters.

With the elimination of the consumer fuel charge, we were able to refocus the federal carbon pollution pricing standards on ensuring that carbon pricing systems are in place across Canada on a broad range of greenhouse gas emissions from industry. In doing so, we will ensure a system that is fair and effective.

We must take the environment seriously. Just yesterday, as I was leaving the house, I went outside, and it was an interesting experience. It turns out that the smoke from the Manitoba fires, and fires in other places, is actually right here in Ottawa. As I spoke to constituents and friends in Toronto, as I see what is happening around the world, that smoke is not only travelling across Canada but has also made its way to Europe.

That tells us that the environment is something that we have to take seriously. I want people in Manitoba and all communities having challenging times with natural causes to know that we in Waterloo are thinking about them. To see them having to be removed from their communities and their homes is something that is very difficult and something that this government will continue to take seriously.

I have shared three very good reasons for us to support the timely passage of Bill C-4. It echoes the ways and means motion, which received unanimous support in the House. These are measures that would benefit constituents in the riding of Waterloo and Canadians from coast to coast to coast. I hope to see a timely passage. I hope to see the full support of all members, because this is the House of Commons, and we have to represent our constituents first and foremost.

[Kelly McCauley, Conservative, Edmonton West, AB]

Madam Speaker, I have a very simple question. It is not a partisan question. It is actually an issue that is affecting a lot of constituents. When the ways and means motion was introduced, it was effective immediately that day. If one had purchased, or had agreed to purchase, a newly built house the day before, even if they were not to be taking possession for a year or two from then, and paying the GST then, they would be cut off. They would still be forced to pay the GST, even though we missed it by one day and even though we would not be purchasing or even building the house for a year or so.

I was just wondering if the member opposite would work with her government to bring in some measures to help those people who had the misfortune of, perhaps, signing the deal one day before the Liberals actually tabled the motion, therefore being forced to pay the GST.

[Bardish Chagger, Liberal, Waterloo, ON]

Madam Speaker, the constituents within the riding of Waterloo have a diversity of views and a diversity of perspectives. This is a matter that has been brought to my attention, because we also have people purchasing their first homes in our community. I would assume that every member of Parliament who is engaging with constituents is hearing this. I actually welcome the opportunity to work with all members, including the government, to ensure that we are making life more affordable for Canadians.

My challenge with it, to be honest, and I have shared this with constituents, is that whenever we have a date, there is always going to be the people from the day before. What is always challenging is how we get it done. What I am hearing from the member is that we need to do things faster. The immediate passage of this would allow more people to benefit, and I hope to receive his support, see the question be called and for Canadians to actually benefit. Let us work on the ones from the day before.

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry—Soulanges—Huntingdon, QC]

Madam Speaker, I thank my colleague whom I respect. I had the pleasure of sitting with her on the Standing Committee on Procedure and House Affairs, and I know that she is a disciplined and principled woman. I would like to know her opinion on the following question.

On April 1, in the middle of the election, the Prime Minister abolished the carbon tax, so the tax is no more. If it had stayed, residents of the provinces, with the exception of British Columbia and Quebec, would have been entitled to the carbon tax rebate. Since this tax has not been collected, they are not then entitled to the refund. However, they got a cheque even though the tax was abolished.

Does the member consider that to be a normal, fair and equitable way of operating? The people of British Columbia and Quebec did not receive a dime. Worse still, they contributed, through income and sales tax paid to Ottawa, to bankrolling that refund, an election gift to residents of the other provinces.

[Bardish Chagger, Liberal, Waterloo, ON]

Madam Speaker, yes, the member and I have worked together a lot. She is a force. I think that the Bloc Québécois is a party that is always looking for solutions. The main difference is that we have to take into account 10 provinces and three territories in one country, Canada. That is the only way in which our perspectives are different.

I think that her question is reasonable. I am an MP from Ontario. I know what was done at the federal and provincial levels. I do not have any details on what was done in British Columbia and Quebec, but I believe that we need to collaborate on the environment. We must continue to do this work.

The issue that the member is speaking about, I think, is one that is from the past, and we have so much work to do, that we really need to look to the future to do better work.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Madam Speaker, I appreciate that the first carbon tax is being taken off. It is a retail carbon tax, which, yes, is also a consumer carbon tax. The truth of the matter is that the industrial carbon tax is also a consumer carbon tax, so I am wondering if the government has taken that into account as it is looking at these new homes that are to be built and looking at what the additional cost would be on each of those homes for the wood, the concrete and all of the utilities involved in building that home.

Will that offset what the Canadians would have had from the GST rebate because of the increased cost through that industrial carbon tax?

[Bardish Chagger, Liberal, Waterloo, ON]

Madam Speaker, I think when we actually look at this legislation and what it will do to benefit Canadians, we really need to recognize the importance of having this legislation advance. The member will have opportunities throughout the whole process, and we are really trying to this parse out, but things are getting more expensive. What can we do? We can try to make life more affordable and be there for Canadians. That is what the government is doing.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Madam Speaker, I have been meeting with my constituents on the ground for months now. Whether it was at our markets, in our schools or in our neighbourhoods, they had a lot to share with me. I remember Manon in particular, a mother who told me that she sometimes has to choose between paying her rent or stocking her fridge.

Today, I am pleased and proud to rise in this honourable chamber to applaud the introduction of this affordability bill. It is good news for our country, good news for our families and good news for Mont-Saint-Bruno—L'Acadie. This bill is a testament to our deep commitment to Canadians. Our commitment is to ensure that people can live, not merely survive, and that they can feed and house themselves with dignity.

Our government has heard the call and has acted accordingly. Through our actions, we are delivering concrete solutions that will bring tangible results to the citizens of Mont-Saint-Bruno—L'Acadie. Cutting middle-class taxes, eliminating the GST on new, first-time home purchases valued at less than $1 million and scrapping the consumer carbon tax will give families some breathing room. When people can breathe easier, they invest in their community. They buy local products and support our businesses, farmers and entrepreneurs. That is good for people, good for businesses and good for our economy.

This bill is also a step toward greater equality. It shows that no one should have to choose between the two basic needs of food and heat. It demonstrates our deep commitment to leaving no one behind and our belief that progress is only meaningful when it is shared.

In conclusion, this bill is a victory for families. It is the result of serious work carried out with a sincere desire to improve the lives of our constituents. It restores purchasing power to people, offers hope to those who had doubts, and paves the way to a more stable, fair and livable future. Mont-Saint-Bruno—L'Acadie deserves this stability. I will remain committed here and on the ground so that every measure is implemented in our daily lives, so that the abstract becomes concrete. I would like to thank everyone who worked to move this bill forward. I thank Canadians for their trust and perseverance.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Madam Speaker, I want to welcome the hon. member to this place. I know he is a new member and that this is going to be the adventure of a lifetime for him, as it has been for me.

Does the hon. member know why, when the government is cancelling the consumer carbon tax for a whole host of reasons, which Conservatives have laid out over the years, it is not removing the industrial carbon tax?

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Madam Speaker, today, my colleague opposite has a golden opportunity to vote for a bill that will lower the cost of living for Canadians.

Will he and his party support us today?

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

Madam Speaker, I want to congratulate my colleague on his election and on his speech.

Right now we know that a big chunk of our country is on fire. We are over 2,000 kilometres away from the fires that are happening in Saskatchewan, Manitoba and Alberta, and here in Ottawa, the health index says the air quality is at nine. There is nothing in the budget to fund greener homes, to re-establish that program. There is nothing for heat pumps, nothing to create energy efficiency and lower costs and nothing that says the Liberal government understands there is a climate emergency taking place.

Is my colleague going to urge ministers and the Prime Minister to take real climate action?

We have been hearing from young people across the country who are asking for urgency. I have never seen anything like this in my life, where if a person walks outside, they will see smoky skies throughout the summer. It is occurring every year. When is the Liberal government going to take it seriously?

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Madam Speaker, today is an important day. We are going to introduce a bill that is very important for our country, for families.

Today, I hope that my colleague will be able to vote with us to support families and make life affordable.