Finance Committee on Oct. 1st, 2025

[Isabelle Brault]

Thank you for the question.

Mr. Lavoie, I'll answer part of your question.

As for the announced tax cut from 15% to 14%, it went into effect on July 1, which means that the tax rate for 2025 will be 14.5%. For this measure to take effect as soon as possible, the agency contacted the Canadian Payments Association so that it could adjust its table of source deductions. As of July, employers and their members will be able to apply a withholding tax rate that corresponds to the new rate.

Obviously, for people who have changed jobs or for whom the change hasn't been made, we will make the necessary adjustments in early 2026, once those people have filed their tax returns for 2025. The tax rate will then be 14.5%.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

What about the second part of my question?

Are there any unforeseeable events or decisions right now with respect to our American neighbours or anything else that could affect what the government has done to help families?

[Gervais Coulombe]

Thank you for the question.

It's all hypothetical. With respect to part 2 of the bill, I don't see any impact, as the key parameters are already set out in the legislation.

With respect to part 3, the tax ceased to apply anyway as of April 1.

As for part 4, I don't think there will be any repercussions.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

So it's set; the bill will help people.

Is that correct?

[Gervais Coulombe]

Passing all four parts of the bill and receiving royal assent would allow—

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

As long as we have it, that's fine.

Thank you very much.

[The Vice-Chair (Jasraj Hallan), Conservative, Jasraj Singh Hallan]

That's time. Thank you.

Next, we have Mr. Garon for two and a half minutes.

[Jean-Denis Garon, Bloc, Mirabel, QC]

I haven't worked in banks for 20 years, but I've been a member of Parliament for four. People are calling my office to say that the CRA is saying that the GST rebate isn't available.

For the Liberals, like Mr. Lavoie, it's no big deal if people are waiting for their rebates, because the bank will lend them money and they'll pay interest like a bunch of clowns. They tell that to the people of Mirabel; they tell it to my constituents. Congratulations to the Liberals.

Here's what happened. The government triggered an election before making a budget, because there was an economic emergency. The Liberals came back to power, but they didn't prepare a budget. They promised countless things during the election campaign without doing a budget exercise, so they introduced Bill C‑4, in which they included a few budget measures.

However, today we learned—and I thank the CRA for telling us this—that the ways and means motion ultimately means that our constituents are unable to assert their rights. We would have needed a budget before the summer for the rebates to take place.

Can a representative of your services tell me how many Canadians and Quebeckers are currently eligible for the GST rebate for the purchase of a new home, but haven't yet received it from the government?

[Amanda Riddell]

I think that is actually a question that could be directed toward the CRA, but I'm not sure they would have those numbers available yet.

[Jean-Denis Garon, Bloc, Mirabel, QC]

I know. You said earlier that you didn't have the answer. We're not going to waste time on this.

The CRA doesn't know the number of people who are eligible, because it isn't yet managing the rebate file.

Is that correct?

[Isabelle Brault]

Thank you for the question.

People will have a set period of time to apply. In my opinion, it's a false question to ask whether the government missed the boat.

I understand that your questions are about the government's approach. You can send them to the government.

[Luisa Rizzo]

Mr. Garon, I would like to add something.

To date, the CRA has received only eight claims.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Okay. I appreciate that.

That means that people understood that they had to wait.

Mr. Chair, I find it rather odd that public servants don't currently have the data they need to tell us who is waiting for a rebate—and rightly so—but a Liberal banker does. Personally, I'm surprised.

[The Vice-Chair (Jasraj Hallan), Conservative, Jasraj Singh Hallan]

That's time.

We're moving into the third round now. We have Mr. Lefebvre for five minutes.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Thank you, Mr. Chair.

Thank you all for coming to answer our questions, which are not always easy.

We're here to study Bill C‑4, which essentially reiterates three commitments from the Conservative Party of Canada's election platform: lowering income taxes, rebating the GST on new homes and removing the carbon tax for consumers. The difference is that we wanted to go further. The big difference was also about expenses. For every new dollar spent, we would get a dollar in savings.

What will happen if the government continues to run deficits at the rate of those we'll see in a few weeks?

[Gervais Coulombe]

Mr. Chair, that's outside the scope of Bill C‑4.

We can forward it to the government, but I don't think the officials around the table can answer it.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Mr. Chair, I have one more quick question.

Bill C‑4 provides for reduced revenues.

Do we think we can find savings in the public service, savings that would enable us to pay for these tax cuts?

[Gervais Coulombe]

Mr. Chair, once again, this is a question that goes beyond the scope of Bill C‑4. It contains four parts, four fairly well-defined measures.

However, I can remind you that Minister Champagne will be tabling a budget in the House of Commons on November 4. That's when other decisions could follow.

However, I don't think the officials around the table will be able to find an answer to the member's question in Bill C‑4.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

How do you think tax cuts could stimulate economic growth? I hope to have more success with this.

[Stefania Bartucci]

As mentioned, lowering the first tax rate will provide people with a bit of tax relief. They will pay less than what they would have been paying under the 15% rate.

In terms of economic impacts, that really depends on how people choose to use their savings, whether they are for additional savings or additional consumption. These are the two ways that economic growth could be stimulated. We don't have any particular projections on exactly what people's behavioural response to the rate change would be, but generally speaking these are the channels through which there would be economic impacts.

[Nina Gormanns]

I'd like to add a clarification.

Since the fuel charge was already removed through a regulation in March, there is no incremental impact on the economy. However, we estimated that this will increase gross domestic product, or GDP, by 0.5% in 2030.

[Éric Lefebvre, Conservative, Richmond—Arthabaska, QC]

Thank you.

I would like to digress for a moment to talk about the Parliamentary Budget Officer.

He told us that the most important fiscal anchor was the debt-to-GDP ratio, that the government was not on track to meet the fiscal objective, that it was the first time in 30 years that he had seen the projected ratio increase in this way and that the path we were currently on was not sustainable. He concluded by saying that everyone should be concerned.

I, for one, am concerned.

My question for each of you is: Are you concerned, yes or no?

[Gervais Coulombe]

Mr. Chair, I would like to respond. We're here as Government of Canada officials to provide technical details and explain the policies put forward by the government. We're not allowed to express our opinions when we're testifying before a committee.

Thank you.

[The Vice-Chair (Jasraj Hallan), Conservative, Jasraj Singh Hallan]

That's time.

Next, we have Mr. Turnbull.

[Ryan Turnbull, Liberal, Whitby, ON]

Thanks, Chair.

Thanks to all the officials for being here today. I appreciate the work that you do day in and day out.

I understand that there are political questions that you can't answer, but in terms of the details of this bill, I'd like to ask Ms. Rizzo this. The GST rebate is not in effect yet; it needs royal assent. That's what we heard from you. Can you confirm that?

I think it was Ms. Rizzo. I'm sorry if I have—