Mr. Speaker, I am delighted to rise tonight in support of Bill C-60, the budget implementation act.
It is important to begin with a level set, and that is that our government thrives on three foundational principles: job creation, economic growth and prosperity for all Canadians. That has been reinforced over the past couple of years, with 900,000 net new jobs established since the recession. Since taking office, our government has lowered taxes 150 times and reduced taxes for families by an average of $3,200 per Canadian family. Those are significant numbers because they speak to Canadians keeping more of their hard-earned money in their own pockets to save and spend as they choose, not as government dictates.
In economic action plan 2013, we are introducing tax relief for new manufacturing machinery and equipment, extending the temporary accelerated capital cost allowance for new investment in machinery and equipment in the manufacturing and processing sectors for an additional two years, to include investment in eligible equipment in 2014 and 2015. This will result in $562 million in tax relief to create jobs and grow companies. As a former business person in small and medium-sized businesses, I understand what it takes to establish savings in businesses to allow them to reinvest in equipment, plant and people. This measure is all about that.
I would like to quote the Ontario Liberal minister of finance, Charles Sousa, who stated, “I welcome the opportunity accelerate the capitalization and depreciation of some of their capital spend. That is going to provide further incentive for those investments. What is going to be positive is that we'll have more investment and, of course, for Ontario, we're the largest manufacturing sector in Canada. This is welcome news”.
In my riding of Don Valley West, in the heart of Ontario, that is an important factor and it is interesting to hear that from the provincial finance minister as validation of that measure.
Through economic action plan 2013, we are also closing tax loopholes, which would reinforce the integrity of our tax system. This is an important measure because it would help in our focus to balancing the budget and keeping taxes low for Canadians. We have heard lots of debate on this issue over the past day or so. Closing tax loopholes, while inconvenient to some, is important in helping to achieve our overall goals.
Supporting small Canadian business is something that economic action plan 2013 takes very seriously. We have proposed a number of key measures to support business, including extending and expanding the temporary hiring credit for small business for one year. Approximately 560,000 small businesses will benefit from this measure, allowing them to reinvest approximately $225 million in 2013.
We are increasing the lifetime capital gains exemption to $800,000, from $750,000, in 2014 and indexing it going forward. The lifetime capital gains exemption increases the rewards of investing in small businesses and making it easier for owners to transfer their family businesses to the next generation of Canadians.
In Canada, in excess of 90% of businesses are small or medium sized. Often, they are family owned and operated and succession is an important part of what they thrive on. Families like to see their businesses maintained by their families so their families can prosper and the next generations can also grow and develop under that culture. This initiative, the lifetime capital gains exemption, would help to ensure that value is maintained.
Under our government's low-tax plan for Canada, typical small businesses with taxable incomes of $500,000 have seen their tax bills drop by over 34%, or $28,600, since we were elected in 2006. There are lower corporate income taxes. In fact, in Canada today under the finance minister, we have the lowest corporate income taxes in the OECD. That is a further incentive and opportunity for businesses to thrive and prosper.
Again, I would like to read from the Canadian Federation of Independent Business, the CFIB, which states, “There is a surprising number of measures for small and medium-sized companies in this particular budget. They have expanded the lifetime capital gains exemption to $800,000. That is very good news. That will help a lot of entrepreneurs. The accelerated CCA will help not just large companies but small, especially in the manufacturing sector, and we think the Canada job grant actually has some real potential”.
The CFIB is a voice for small business in our country. I know, as a business person, we had a lot of respect for it in our business. I often spoke to it to find out the pulse of small business and how it felt about the economy and its businesses.
I spent a lot of time talking with small businesses as a member of the industry committee. I welcome our government's efforts to promote small Canadian business. Our government values the contribution of small businesses to the success of the Canadian economy. We will continue to support and encourage growth in this important sector.
Another area we have talked about today and have heard quite a bit about is the Canada job grant. I held a business round table in my riding of Don Valley West just this past Friday. I had a number of very successful business people come to that breakfast to talk about what they felt was a wonderful opportunity in the Canada job grant in to help to train and develop new workers and to help existing workers improve their skill sets.
The Canada job grant itself is a partnership between the federal and provincial governments and the particular business. It is important to have that partnership in place where businesses will partner with government to ensure they have a stake in getting that employee retrained.
At its full implementation, we will see 130,000 Canadian workers who need to find work to improve their skills access to that training each year. We have heard a lot of points of interest today on the Canada job grant being advertised. However, the reality is that this government, under our Prime Minister and our Minister of Finance, is delivering incentives to cause businesses to help develop their people to make them longer term, better employees by helping them increase their skill sets.
A number of consultations will be held across the country to discuss the development of the Canada job grant. I mentioned mine last week where my constituents were blown away by the program and stressed the importance of the Canada job grant being advertised, particularly so it would reach high school students. It is interesting that we are talking about whether the advertising is premature or not. People in my riding are saying that we have to get the word out to high school and university students so as soon as they graduate, they know there is an opportunity for them and companies are willing to invest in their development.
The new building Canada plan makes investments into Canada's public infrastructure to create jobs, economic growth and provide a high quality life for families in every city and community across the country. The new building Canada plan has three foundational principles.
First is the community improvement fund, which is a $32 billion infrastructure investment focused on municipalities. This will build roads, public transit, recreational facilities and other pieces of community infrastructure across Canada that will improve the quality of life of Canadian families.
Second, the new building Canada fund will contribute $14 billion in support of major economic infrastructure, projects that have national and regional significance.
Third is the renewed P3 Canada fund, which is $1.25 billion to continue finding innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships.
These are just a few of the opportunities in budget 2013, the economic action plan. I encourage the opposition to get on side. Let us get this voted through as soon as possible so these initiatives can be put into place for the benefit of all Canadians.