Debates of May 14th, 2014

Finance—Main Estimates 2014-15

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, the Department of Finance has done a study on the impacts of income splitting. Has the minister read that report?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the department, of course, analyzes a whole variety of policy alternatives and I am briefed on them.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, that was a very direct and simple question. A report has been prepared. The former finance minister acknowledged this. Has the current Minister of Finance read the report on income splitting from his department?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I thought I was fairly clear. The department provides analyses on a wide range of policy alternatives. I look at them, I am briefed on them, and we discuss them. We then make our decisions after a robust consultation period with Canadians right across the country.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, I asked the minister if he has actually read a report on income splitting. He cannot tell us or will not tell us. Either he has not read the report or he has read the report and he will not admit to that fact.

It is a simple question. Has the minister read the report that his department has prepared on income splitting, yes or no?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, there are a variety of reports, and I have certainly read reports on this subject, as I have on a variety of subjects. I will continue to look at them.

I do not know about this focus on income splitting. It seems the only thing the NDP knows about is splitting Canadians' income from their pockets.

[The Deputy Chair, Conservative, Barry Devolin]

Before we continue, members should be on their feet when they have the floor and in their seat when they do not. A minute ago we had both members on their feet.

I would ask members to stand when they ask a question and subsequently sit, and I ask the minister to do the same thing.

The hon. member for Skeena—Bulkley Valley.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, can the minister tell us how many Canadians will benefit from his income-splitting plan?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said, this is not my plan. This is a policy alternative that we are looking at, along with many others.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, does income splitting help single Canadians?

[The Deputy Chair, Conservative, Barry Devolin]

Can the hon. member for Skeena—Bulkley Valley take his seat between questions, please?

The hon. Minister of Finance.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, since there is so much interest in this subject, let me just say that, since 2006, our government has introduced a number of broad-based tax relief measures from which families are benefiting. They include reducing the GST to 5% from 7%, increasing the amount Canadians can earn without paying federal income tax, reducing the lowest personal income tax rate to 15% from 16%, and introducing the incredibly successful new tax-free savings account, which helps Canadians meet lifetime savings needs. Half of Canadians have participated in this account, and the amount involved I believe is now $80 billion.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, will people making less than $44,000 a year benefit from income splitting?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the member opposite wants me to talk about a policy that we have not adopted. He wants me to get into details with respect to something in which there is a variety of alternatives, and so no answer is possible.

I am not certain what the objective of the questions is. I have been very clear that we are not going to announce this until the next budget, after an extensive period of consultation with Canadians.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, the minister does not seem to understand the basic connotations of what income splitting might be.

Based upon the fact that this is a promise that is sitting on the books with the Conservatives, contingent upon a balanced budget in the next federal budget, I am asking, simply, if he understands who does and who does not benefit from income splitting. It seems like a fair question and a straightforward one.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, our government has taken a million people off the tax rolls. We will look at each policy alternative that is reasonable, and we will analyze it to determine its benefit for Canadians.

Rest assured that we will not engage in a reckless spending spree. We will focus on reducing taxes for hard-working Canadians.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, income splitting will not help 85% of Canadians. The minister ought to know that before he starts to trumpet its values.

I have a question about budget cuts. Would the minister agree that cuts to program spending would have a negative effect on the short-term GDP growth?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, we will ensure that we deliver services to Canadians in the most efficient way possible. Canadians demand that. Canadians deserve that. If we do not spend the money, we are in a position to experience a higher surplus and then be in a position to reduce taxes, which enhances growth.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, is the minister familiar with the Parliamentary Budget Officer's assessment of budget cuts and the impact on GDP growth in Canada?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, there are a variety of studies done. I am not certain what he is referring to, but I am sure we will find out, or I am not sure we will find out.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, he got handed the answer just at the last minute, so let us help out. The PBO estimates that the number as -0.5% of the GDP.

Can the minister tell us what the effect of 0.5% negative GDP is on jobs in the Canadian economy?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the first point is that the PBO estimate is not something we agree with. We believe that the best contribution the government can make to securing sustainable long-term growth and job creation is promoting sound and sustainable fiscal finances. We do not believe that balancing the budget and reducing the debt is an end to itself, however; rather, balancing the budget and reducing debt would provide a host of benefits to Canadians for years to come. It would free up tax dollars that would be otherwise spent on debt, keep interest rates low, and many other advantages.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, no doubt he does not agree, because it is going to cost 46,000 jobs as of 2016.

How much did the Department of Finance spend on economic action plan advertising in 2012-13?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the economic action plan communication strategy is to make Canadians understand the consequences and the advantages for the Canadian economy and for individual Canadians of our economic action plan. It was a bold and innovative initiative, and it has created good jobs and sustained a higher quality of life; so it is the responsibility of the government to communicate on important programs and services.

In fact, the awareness of the plan has increased dramatically in the country.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Chair, the consequences are that it cost the Canadian taxpayer $15 million. The fact that the minister did not know that answer or was unwilling to tell it is disturbing.

Since 2009, how much has the government spent on economic action plan advertising?