Thank you very much, Mr. Chairman.
Thank you for the opportunity to meet with you and the committee members to discuss Bill C-59.
This bill implements key aspects of budget 2015. These elements represent our government's latest measures to create jobs, growth and long-term prosperity.
Before I get into the details, let me remind the committee of past promises. We promised that once the crisis of the recession passed, we would take action to balance the budget. Equally important would be how we balanced the budget—not by slashing transfer payments to provinces. Unlike the Liberals in the 1990s, we refused to undermine support for the health care and education Canadians rely on, nor did we engage in reckless structural spending schemes or higher taxes. Rather, we promised a balanced budget, balanced fiscally and balanced in the benefits it would offer all Canadians. These are promises made and promises kept. This budget is balanced.
It protects historical transfer payments, which have increased by 62% since we came to power. It has reduced taxes to create an overall federal tax burden that is already at its lowest level in 50 years.
And it builds on a record of success Canadians can be proud of.
Over 1.2 million more Canadians are working now than at the end of the recession. The majority of these jobs have been full-time, high-wage, and in the private sector.
According to KPMG, total business tax costs in Canada are the lowest in the G-7, some 46% lower than those in the United States. In the index of 61 economies, the IMD World Competitiveness Centre ranked Canada 5th in the world for economic competitiveness. The Centre for American Progress says that Canada has experienced continuing middle-income growth, while for many countries it had halted. And Bloomberg has ranked Canada as the second most attractive place in the world to do business.
We've come so far together as Canadians but we are still confronting challenges, including the dramatic decline in the price of oil. Canada is a trading nation deeply intertwined with the global economy. International storms inevitably touch our shores.
Since the recession, the global recovery has been difficult, with the risk of becoming what the managing director of the IMF calls “the new mediocrity”. So what are we doing to move forward here in Canada? Let me talk about some aspects from our latest budget.
I will start with taxation. For families, seniors, and small businesses, we are putting more money and leaving more money in the pockets of Canadians. We have reduced taxes more than 180 times since 2006. In this budget we are going even further.
Economic action plan 2015 implements the family tax cut, expands and enhances the universal child care benefit, and increases the child care expense deduction dollar limits. These benefits will help those who care about their kids most, mum and dad.
We're taking even more action for mums and dads in this budget. We're giving them new opportunities to save for their kids' education, for the down payment on a home, for a new small business, or for retirement. The budget proposes to nearly double the tax-free savings annual contribution limit from $5,500 to $10,000. This will give Canadians, parents, seniors, and hard working people across the country even more freedom to save money tax free. In fact, 60% of those who maxed out on their TFSA contributions last year earned less than $60,000. Three-quarters of contributors earned less than $75,000. This measure is aimed at those who need our help the most: low and middle-income Canadians.
Family means duty: the duty to protect each other. This is a fundamental Canadian value and it is reflected in our values as a government.
Our budget expands compassionate care employment insurance benefits from six weeks to 26 weeks. We are making it easier for Canadians to take care of a sick or dying loved one. I'm deeply proud of this reform, as is our Conservative caucus, the whole caucus. No one is more deserving of our support than those who take time to support their families at times of great need.
This budget also includes a new measure to meet one of the government's most important obligations, which is to protect Canadians here in the country and abroad. When we take a look around the world in 2015, a sad truth emerges: our country is not immune to the dangers of international terrorism.
Our government understands the dangers and is taking action to combat the threat. Today's legislation includes several measures to ensure the continued security of Canadians.
Bill C-59 empowers us to reform House of Commons security, ensuring the safety of elected officials as they go about the business of the nation. It strengthens our ability to revoke passports on grounds of terrorism or national security. To further improve the security of Canada's immigration system, Bill C-59 proposes to expand the use of biometric screening to verify the identity of all visa-required travellers seeking entry into Canada.
Finally, Mr. Chairman, we remain undaunted in our efforts to build a more prosperous Canada. The continued weakness of the global economy means we must take relentless action to create jobs, growth, and long-term prosperity.
That starts with small businesses, Canada's greatest job creators. Alone, they account for half the working men and women in Canada's private sector, so we are working hard to put more money back in the pockets of Canada's entrepreneurs.
Today's legislation breaks new ground. It cuts the small business tax rate to 9% by 2019, the largest tax rate cut for small business in more than 25 years. This means an annual tax reduction of up to $38,600 that can be reinvested in a business to fuel its growth and create jobs for Canadians.
Many of these small businesses work in the manufacturing sector. As this committee knows, manufacturing represents over 10% of our GDP and employs 1.7 million people across the country.
Manufacturing built this country. It built my home province into an economic engine of Confederation. Unlike the Liberal leader, who questioned the role of manufacturing in Canada's future, for this Conservative and for this Conservative government, the words “made in Canada” continue to fuel pride and, of course, jobs. That is why we must give manufacturers the tools they need to create the products and the jobs of the future.
Today's legislation includes an accelerated capital cost allowance for machinery and equipment used in manufacturing and processing. This new 10-year tax incentive will result in a deferral that is expected to reduce federal taxes for manufacturers by $1.1 billion over the period from 2016-20. It will create even more jobs for hard-working Canadians.
Let me end with one more job creation measure, a major new infrastructure program: the public transit fund. This program, increasing to $1 billion per year by 2019, will be a permanent source of financing to provinces and municipalities for major public transit projects. It will help cut congestion in Canadian cities, saving families time in traffic and saving businesses from higher costs.
This fund is one more addition to our government's historic infrastructure investments, which together represent the largest long-term federal commitment in our country's history.
Mr. Chair, this is just a brief overview of the many measures in Bill C-59 that will benefit Canadians.
Canada's economic action plan is working, creating jobs and growth and building a stronger, more prosperous, more confident Canada. I'm prepared to tell you more about it today as I answer your questions.
Thank you.
