House of Commons Hansard #86 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was chair.
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, in 2009, the number was $17 million; the next year, $10 million; $8.7 million; $16 million. The total is $73.2 million.
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Mr. Chair, $73 million; increasingly annoying Canadians with their own tax dollars is adding insult to injury.
How much did the government spend advertising the job grant program that did not exist?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, the job grant program exists, of course.
Let me just reference the, I guess, illusion that the member opposite was making to the advertising's effectiveness.
Awareness of economic action plan continues to increase. Canadians aware of the plan have increased from 20%, in the fall of 2009, to 61%, in the fall of 2013. The Department of Finance continues to be responsible for the development and implementation of the advertising campaign, which supports measure-specific campaigns by line departments.
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Mr. Chair, awareness has grown with the annoyance among Canadians for these same ads.
Let us talk about tax compliance for a moment. The government produced a study about compliance costs for taxes on small business. Has the finance department done any studies on the compliance costs of tax credits?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, I do not have that direct information, but I can pass it on to the hon. member as soon as I do.
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Mr. Chair, does the Department of Finance do any estimates on tax compliance costs with any new tax credits that it is introducing, in advance?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, the department always looks at the economic consequences of tax measures it introduces in the budget. That is the normal procedure for the government. When we do that, then we come to the determination whether it is cost effective.
The Deputy Chair Conservative Barry Devolin
That concludes this 15-minute segment.
Resuming debate, the hon. Parliamentary Secretary to the Minister of National Revenue.
Finance—Main Estimates 2014-15Business of SupplyGovernment Orders
South Shore—St. Margaret's Nova Scotia
Conservative
Gerald Keddy ConservativeParliamentary Secretary to the Minister of National Revenue and for the Atlantic Canada Opportunities Agency
Mr. Chair, it is a pleasure to stand this evening and address the House of Commons Committee of the Whole on keeping taxes low and creating a strong business climate.
I appreciate the opportunity to discuss our government's commitment to keeping taxes low and leaving more money in the pockets of hard-working Canadian families and job-creating businesses.
What I will not do, of course, is disrespect your office, Mr. Chair, and stand during my question when the minister is answering. It becomes confusing, as to who is asking the question and who is answering the question. Quite frankly, what I will also not do is disrespect your office, Mr. Chair, by sitting on the arm of my chair when I should be sitting in the chair.
Over the next several minutes, I would like to provide an overview of our government's actions that have kept taxes low for families and businesses, and have led to the creation of jobs and opportunities, economic growth, and long-term prosperity for all Canadians. Supporting this track record is our unwavering commitment to return to balanced budgets in 2015, which will allow us to have more dollars available to invest in priorities that matter to Canadians and to allow even further tax relief for families.
Allow me to elaborate on the measures we have taken since 2006 to keep taxes low. Our government has a proven track record of success when it comes to supporting families and communities. The opposition, on the other hand, has a proven record of voting against that support. For all Canadians out there watching, it is a fairly easy matter to check the record on how members of Parliament vote on various subjects. Certainly when it comes to tax relief for Canadians, the opposition has an extremely solid record of voting against tax relief for Canadians.
We have worked hard to create economic advantages for all Canadians so they can enjoy a high quality of life and long-term prosperity. We have lowered taxes to the point where the overall federal tax burden is now the lowest it has been in 50 years. Going forward we will examine ways to provide further tax relief for Canadians while taking into account the goal of returning to balanced budgets by 2015.
Unlike the high-tax NDP and Liberals, our Conservative government believes that Canadians should not pay more taxes, they should actually pay fewer taxes. In fact, our strong record of tax relief has meant savings of nearly $3,400 for a typical family of four in 2014, allowing them to invest those savings in important family priorities.
Since 2006, our government has lowered taxes in a number of ways, including increasing the amount of income that all Canadians can earn without paying federal income tax, increasing the upper limit of the two lowest personal income tax brackets so that individuals can earn more income before being subject to higher tax rates, reducing the lowest personal income tax to 15% from 16%, and introducing the tax-free savings account to help Canadians save by earning tax-free investment income.
Our government's ambitious agenda of tax relief for families, individuals, and businesses is aimed at creating a tax system that fuels job creation and growth in the economy, and allows Canadians to keep more of their hard-earned money.
Our tax cuts have also given individuals and families the flexibility to make choices that are right for them. Our government support for families has also meant supporting the businesses that create good jobs, and allowing families to enjoy a high standard of living. In particular, we have taken action to lower taxes for businesses so that they can create good jobs here at home while allowing them to compete in the global economy.
In 2007, prior to the global crisis, Canada implemented a bold tax reduction plan that would help brand Canada as an attractive destination for business investment. This plan has reduced the federal corporate income tax rate from 22.12% in 2007. We legislated our rate reductions to just 15% today, one of the best records in the G7. In fact, Canada now has an overall tax rate on new business investment that is lower than can be found in any G7 country, and below the average of the 34 member countries of the OECD.
We also recognize the vital role small businesses play in the economy and job creation. That is why we are committed to helping them grow and succeed.
That includes reducing the small business tax rate from 12% to 11% and increasing the small business limit to $500,000. Indeed, because of our low-tax plan, a typical small business with $500,000 of taxable income is now saving $28,600. That is a lot of money for a small business to invest back into that business, to invest in machinery, or to invest in human capital. That is more money that can be reinvested in growing businesses and creating jobs.
This investment-friendly tax environment is critical to the future of Canada's economy. It is a broad-based, fiscally durable, structurally sound and increasingly powerful selling feature in attracting the investments that Canadian businesses need to grow and to thrive. Today, and in the years to come, this low-tax environment will play a crucial role in supporting economic growth and enabling businesses to invest more of their revenues back into their operations.
In addition to low taxes, our government has eliminated close to 1,900 tariffs and concluded multiple free trade agreements, which together are providing another $590 million in annual tariff relief for Canadian consumers and businesses.
We became the first government in Canadian history to reach a free trade agreement with the European Union, an agreement that will open up new markets to Canadian exports and bring countless benefits to Canadian businesses and Canadian families.
I just want to enlarge on the European free trade agreement. The key here is not just those 500 million consumers in Europe. It is positioning Canada in a very enviable position between those 500 million, quite frankly, affluent consumers in Europe and those 330 some million American consumers we get to trade back and forth with on a daily basis. That is 800 million consumers accessible to Canadian businesses.
I would like to conclude today with a few brief words on the impact our economic action plan has had and will continue to have on Canadians. In today's uncertain world, Canada's economic action plan is working. It is creating jobs, it is keeping our economy growing, and it will return us to balanced budgets in 2015, which bodes well for not only the current generation of Canadians, but also for future generations of Canadians who, quite frankly, the NDP quite often forgets about in its tax-and-spend scheme of today.
A recent analysis by The New York Times of the Luxembourg Income Study suggests that Canada's medium-income households today are the richest out of 20 peer countries, including the United States. It also shows that Canada's medium-income households have seen increases of about 20% in their take-home incomes between 2000 and 2010. This confirms that our government's low-tax plan for jobs and growth is working and increasing long-term prosperity for all Canadians.
The federal tax burden is now the lowest it has been in more than 50 years and more than one million low-income Canadians have been removed completely from the tax rolls. The share of Canadians living in low-income families is now at the lowest level over the past three decades. That is worth repeating because we hear a lot from the opposition. The share of Canadians living in low-income families is now at the lowest level over the past three decades.
Going forward, the government will keep taxes low and will examine ways to provide further tax relief for Canadian families, while returning to balanced budgets. With our economic action plan, Canada is on track to have a stronger and more prosperous future.
In closing, I would ask the Minister of Finance to please tell us what tax relief measures the government has offered to Canadian families. I know this is not a short answer. There are a lot of tax relief measures we offered, but I would ask him to try to sum them up.
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, keeping taxes low and supporting families has been a cornerstone of our low-tax plan for jobs and growth. Since 2006, our government has introduced significant broad-based tax cuts that have benefited Canadian families. For example, we have delivered on our commitment to reduce the goods and services tax to 5% from 7%. We have increased the amount that Canadians can earn without paying federal income tax. We have reduced the lowest personal income tax rate to 15% from 16% and increased the amount of income that individuals can earn before facing higher tax rates by increasing the upper limit of the two lowest personal income tax brackets.
We have introduced a tax-free savings account, which is an increasingly popular way for Canadians to save for their goals and their future.
Canadian families are also benefiting from the introduction of the child tax credit, the children's fitness tax credit, and the children's arts tax credit.
Indeed, Canadians at all income levels are benefiting from tax relief introduced by our government, with low- and middle-income Canadians receiving proportionally greater relief. Benefits for low- and middle-income Canadians delivered through the personal income tax system and support for families with children have also been increased and enhanced.
Our government has introduced the universal child care benefit, which provides $100 per month to families for each child under the age of six.
We have introduced and enhanced the working income tax benefit, lowering the welfare wall and strengthening work incentives for low-income Canadians already working while encouraging other low-income Canadians to enter the workforce.
We have increased the amount of income that families can earn before the national child benefit supplement is fully phased out and before the Canada child tax benefit base benefit begins to be phased out.
We have maintained the GST credit level while reducing the GST rate by two percentage points, translating into about $1.2 billion in GST credit benefits annually for low- and modest-income Canadians.
As a result of the tax relief provided by this government since 2006, more than one million low-income Canadians have been removed from the tax rolls.
Overall, this government has cut taxes for an average family of four by close to $3,400.
We have been able to accomplish all of this while still being frugal with taxpayer dollars by paying down $38 billion on the national debt before the recession, the lowest level in a quarter of a century. We have lowered the government debt to the lowest debt in the G7.
For the first time in Canadian history, the direct spending program has fallen for three consecutive years by over $5 billion since 2009-10, and we are freezing the government's operating budget again.
We are the only G7 country to have recovered all of the business investment lost during the recession. Moody's, Fitch, Standard and Poor's have reaffirmed our AAA rating, but there is more work to do. Of every government revenue dollar, 11¢ goes to service the debt. We are committed to reducing the debt-to-GDP ratio to 25% by 2021, ensuring that future governments will have to mind the taxpayers' dime as we have through the introduction of balanced budget legislation.
Most importantly, Canadians across the country can count on our Conservative government to keep their taxes low while continuing to examine ways to provide further tax relief for Canadian families.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, let me change the topic slightly.
Does the minister agree that gender considerations should be integrated into all aspects of the budgetary process?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, we do integrate them into the budgetary process.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, does Finance Canada evaluate the department's gender-based analysis practices, and is that available publicly?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, we do generate the analysis. I am not certain of the full publication. I can get back to the hon. member on that.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, I would appreciate his getting back to us on that.
The Auditor General has found that senior staff and policy analysts at Finance Canada lack gender-based analysis training. How many senior staff and policy analysts have been trained since the audit?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, I do not have the number, but I know that this training is available to all staff.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, something is happening. We are not sure.
Does Finance Canada regularly conduct a gender-based analysis on new and current tax measures, and is that available publicly?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, I will have to get back to the member on that question.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, if it helps, the government has said that departments and agencies are required to include gender-based analysis in the development of new spending measures, so hopefully, that is available publicly.
In April 2011, the government proposed an income-splitting program at an estimated cost of $3 billion. Does the minister believe that this is the best use of federal taxpayer dollars, since income splitting would benefit, at most, 16% of Canadians, and they would be the richest 16% of Canadians, while costing 100% of Canadians in lost services? Second, has the minister conducted a gender analysis of this program?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, as I have said in response to numerous questions on this subject, the Prime Minister has said, and I have said, that income splitting is good for seniors. It can be good for families. We will await the budget for the details. However, I should point out 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, increasing the amount Canadians can earn without paying federal income tax, reducing the lowest personal tax rate to 15%, and introducing the new tax-free savings account.
Low-income families and individuals are also benefiting from measures to increase and enhance benefits through our tax system, including the universal child care benefit, introducing and enhancing the workers' income tax benefit, increasing the income under the national child care benefit, and others.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, I would assume that the government is going to conduct a gender analysis of a program it is thinking of introducing, one that apparently does not benefit 84% of Canadians, so we look forward to that.
Does the minister know how many jobs have been lost or how much unemployment has increased in Ontario in the last year? Let me just clarify. Does the minister know how much unemployment has increased in Ontario in the last year? How many jobs have we lost?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, first I would like to answer an implied question raised earlier in respect to income splitting, which we discussed. All measures are analyzed for gender balance, as I said before.
With respect to the labour market, it is important to get the facts straight. Canada has posted one of the strongest job-creation records in the G7 over the economy. The majority of the jobs have been full-time private sector positions in high-wage industries, and while labour market data are volatile, it is important to look at the longer-term trend, and we are very positive.
Peggy Nash NDP Parkdale—High Park, ON
The number he is looking for, Mr. Chair, is 11,400 jobs. That is how many jobs were lost in Ontario last year. That is some record.
Will the minister admit that this is a troubling indication of a stalled and even slipping recovery in his home province? Will he at least admit that?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Chair, the province of Ontario numbers are lagging other parts of the country. Clearly, Canada cannot reach its full potential if its largest province is struggling. We believe that the economic recovery is continuing apace, and we think that with sound fiscal policies, that can continue in Ontario as well.
Peggy Nash NDP Parkdale—High Park, ON
Mr. Chair, there are 11,000 families now without jobs.
Does the minister, who is also the minister for the GTA, know that the City of Toronto reported that unemployment increased to 9.2% last month? Does the minister consider this to be acceptable in Canada's largest city?