Thank you, Mr. Chairman.
This is my second time representing the minister in front of this committee. It's always a pleasure to wear another hat, so to speak.
The purpose of this meeting is to discuss Bill C-40, the Sales Tax Amendments Act, 2006. The intent of this bill, I'm sure you all know, is to implement measures aimed at increasing the fairness, efficiency, and ease of compliance in administration of the sales tax system. The Minister of Finance spoke in the House when he tabled this bill. He said:
Canada's New Government is committed to reducing taxes and eliminating red tape. We believe this will make our economy stronger and that it will give a competitive advantage for Canada.
The bill we're discussing today reflects that commitment. We want to make sure that our tax system is fair for all taxpayers, and with Bill C-40 we are moving in that direction. I will outline how we are doing that in a moment, but first I'd like to take a moment to make a few remarks about Canada's new government improving the fairness of Canada's tax system in general.
We believe that like charity, tax fairness begins at home. That's the approach we took in Budget 2006, a budget that delivers real results to individuals and families. It did so in a focused and fiscally responsible way. We started by lowering the GST to 6%. We also delivered broad-based personal income tax relief combined with targeted tax cuts, cuts that over two years will provide almost $2 billion in tax relief for individual Canadians. That, of course, is more than the last four Canadian budgets combined.
These cuts, Mr. Chairman, will remove about 655,000 low-income Canadians from the tax rolls altogether. That is good news for over half a million Canadians and their families. As a result, Canadians will have even greater opportunity to keep more of their hard-earned dollars so they can invest in the things that matter most to them and their families.
In recognition of the Canadian entrepreneurial spirit, and the fact that it helps drive our economy, Budget 2006 also delivered on the government's promise to reduce business income taxes. This action will create an environment for jobs and growth, which in turn will make Canada's tax system more internationally competitive. But this new government has not and will not rest on those laurels. We recognize there is more work to be done.
In October, the finance minister announced a tax fairness plan for Canadians. The plan will restore balance and fairness to the federal tax system. It will protect Canada's long-term economic future and ensure that the tax burden is not unfairly shifted onto the backs of hard-working individuals and their families.
The plan increases the age credit amount, and for the first time ever in Canada, seniors will be able to split their pension income.
We didn't stop there, Mr. Chairman. Along with this fall's economic and fiscal update, the Minister of Finance, before this committee, released Advantage Canada: Building a Strong Economy for Canadians. This is a long-term, national economic plan designed to make Canada a true world economic leader.
Among other initiatives, this comprehensive plan will further improve tax fairness by featuring a reduction in taxes for all Canadians.
Getting to the substance of Bill C-40 before us, the bill complements the initiatives I've just outlined.