Mr. Speaker, I wish to thank the member for Kings—Hants for sharing his time with me.
I am pleased to rise today to talk about choices. We are here to talk about choosing between corporate tax cuts and helping Canadian families. We are here to talk about a government that does not govern but simply strives for more power.
We are here to talk about what is important to Canadians, because on this side of the House we are listening to Canadians. We are listening to their wants and their needs.
We are here to talk about corporate tax cuts. Are they something Canadians want? Are they something Canadians need?
Canada cannot afford to give big corporations $6 billion in tax cuts because of a record $56 billion deficit caused by the Conservatives. I believe in competitive corporate tax rates. Liberal governments cut corporate tax rates from 28% to 19% when we had a budget surplus.
The Conservatives had led Canada into a deficit situation even before the recession started, and with a deficit of $56 billion we cannot afford to borrow billions of dollars more in order to give tax cuts to Canada’s big corporations.
Education and innovation, foreign investment, energy efficiency, environmental innovation, better Canada-United States relations and a credible approach to budget cuts are key elements in our plan for the Canadian economy in the medium term.
But our immediate economic priorities start and end with reducing the tax burden on middle-class Canadian families because they are facing ever-growing demands in terms of caring for family members, pensions, post-secondary education and sustained employability.
After five years under the Conservatives, the situation of Canadian families has not improved in any way, and $21 billion for the untendered purchase of stealth fighter planes, megaprisons and tax cuts for big corporations will certainly not bring them any relief.
Reducing corporate taxes now is irresponsible and costly. Unlike in 2007, when these taxes were voted on, Canada now has a $56 billion deficit and has piled up over $200 billion in new debt because of the utter and complete incompetence of this government. These additional tax cuts for big corporations will have to be paid for with borrowed money.
More tax cuts for corporations are not necessary. Last year, the Bank of Canada said the income tax rate in Canada was the most attractive in the world. In Canada, corporate taxes have been cut by 35% in recent years, and we now have the second-lowest rate in the G7, after the United Kingdom. Our rate is 25% lower than the rate in the United States.
In fact, the Conservatives are raising taxes. When the government wants to give tax cuts to big corporations in Canada, it raises employment insurance premiums, and this means it raises the tax burden on small businesses. The Conservatives simply do not understand. They raise the payroll taxes on all employers and employees, which eliminates jobs, while cutting the tax rate for big corporations.
The Conservatives are not offering tax cuts for small business. In reality, their $6 billion in tax cuts will not apply to 95% of the 2.2 million companies carrying on business in Canada. These tax cuts are not a viable proposition. The Department of Finance has said that tax cuts are not an effective way of creating jobs and contributing to the growth of the economy in the short term. Supporting infrastructure, housing and families is a much more effective way of encouraging growth and job creation.
The Liberals know that middle-class families are in a difficult situation. They are having problems with debt levels and the rising cost of living, caring for family members, saving for retirement and access to post-secondary education. These are the priorities the Liberals are focusing on. The Conservatives have ignored these issues and chosen instead to spend billions of dollars of taxpayers’ money on fighter planes without a bidding process and on tax cuts for big corporations.
After five years of Conservative government, Canadians' lives have gone downhill. Canada is no longer as fair, the rich are getting richer and middle-class families' incomes have plateaued. Families are facing mounting pressure. Their breaking point is not far off.
The Liberals will make different choices and stand up for Canadian families and their priorities. We will cancel the $16 billion agreement in principle for fighter jets, and will save billions of dollars by holding an open, competitive tendering process to replace the CF-18 aircraft.
The Liberal's approach to the deficit will be credible and effective. Within the first two years of a Liberal government, the deficit will be reined in to 1% of GDP. This will be further reduced every year until a balanced budget is restored. The Liberals will re-establish an economic prudence fund as part of the budget process so as to provide a cushion as we set out to meet our objectives.
The Liberals will control spending and work with the public service to identify targeted and sustainable efficiencies. We will refrain from proposing anything in our upcoming platform that cannot be financed without increasing the deficit.
The Liberal Party intends to promote equal opportunities for middle-class families under its Liberal family care plan so that caregivers will no longer have to leave the labour market in order to look after their loved ones. The Liberal Party also intends to reduce the cost of post-secondary education and occupational training so that Canadians have access to full-time, highly skilled, well-paid jobs in a competitive global marketplace. The Liberal Party intends to increase the number of early childhood education and child care spaces so that parents have an opportunity to remain at work while their children are in reliable, good quality child care. The Liberal Party will also propose a voluntary supplement to the Canada Pension Plan so that the 75% of private-sector wage earners who do not have a retirement plan have access to one that is simple and inexpensive.
We will cancel the tax breaks the Conservative government gave to big corporations and we will freeze the rate of taxation at 2010 levels. Canada's corporate tax rates are already among the lowest of the G8 countries and are 25% below the rates in the United States. The Liberals will reinvest these savings in order to reduce the deficit and meet the priorities of Canada's middle-class families: pensions, education, health care and family care. There are real challenges facing working families. The Liberal Party will fight for these priorities.
Choosing families over large corporations is a matter of principle that Liberals will not barter away. We are calling on all parties to take a principled stand against billions in more tax cut giveaways during a time of deficit, money that would be better directed toward relieving the burden of middle-class families.
The Conservatives have delivered nothing to ease the burden on middle-class families. Instead, the government has refused to budge from its original plan of adding to its record deficit in order to pay for more corporate tax breaks that we cannot afford right now. Liberals continue to call for measures in the upcoming budget that would alleviate the economic pressures on Canadian families struggling with record personal debt, measures such as support for family care and post-secondary education and pension reform.
I am disappointed that the Conservatives ignored our advice to stop borrowing money to cut taxes for our largest corporations. Now it falls to the other opposition parties to take a principled stand in favour of middle-class families by refusing to support the Conservatives' unaffordable tax cut plan.
My party and I are listening to Canadians and we have heard that they do not want corporate tax cuts. They do not need corporate tax cuts. Now the question is: Will the government govern or will it continue to push for more power while ignoring the needs of Canadian families?