Mr. Speaker, we are in favour of intelligent and targeted tax reductions that get money into the hands of those who need it the most because they are the ones who will spend it.
Who benefits most from a GST reduction? Is it somebody who buys a cup of coffee or somebody who buys a car? The person who buys the car, particularly a more expensive car, is the one who will benefit the most.
Similarly, people say that the personal savings account that the government has put forward is a good thing. It is a good thing if an individual makes more than $80,000 a year because that is the kind of money someone needs to take advantage of it.
As the member said, people are having a difficult time right now. There is a lot of debt and a lot of uncertainty. People cannot pay their mortgages. We need to get the money to the people who need it the most, which is why we are in favour of getting money into the hands of those who have lost their jobs in terms of the two year change to the EI program.
The member is right in terms of reducing the tax burden on those who are poor and those in the low middle class because they will use it for their basic needs. It is not a good stimulus to the taxpayer when someone saves the money and buys an expensive car.