Madam Speaker, I would like to tell a story today, a tale from history, which may be somewhat unfamiliar to those on the other side of the aisle, but I assure them that it is true.
Once upon a time, there was a country with a pioneer spirit. It grew from a small settlement in the maritimes and the banks of the St. Lawrence and expanded until it stretched from sea to sea to sea. It was filled with proud people, immigrants and first nations, who believed that there was no limit to what they could accomplish. They valued hard work and what they could achieve when they set their minds to it and worked together. They built a great nation, one that was to become the envy of the world.
This nation was built not only on hard work but on a common set of values. The people knew that one of the keys to success was planning for the future. They were careful with their money, saving a portion of their income for a rainy day and their retirement. They knew that they might at some point face adversity and need to use that rainy-day fund. They wanted at some point to be able to retire and enjoy well-earned retirement. Therefore, they put aside what they would need to deal with emergencies and a stable future.
When they did this, they were showing personal responsibility, knowing that they could not and should not depend on someone else to make such financial decisions for them. The people who made Canada great understood that they controlled their own destinies. They passed these values of common sense and thrift on from one generation to the next. They did not look to government to do what they should do for themselves. They knew that the individual is the person best suited to decide how to prepare for his or her own retirement, which is part of personal responsibility.
It seems that, somewhere along the way, the idea of personal responsibility, that core Canadian value, has been lost by some in this country. There is a group of Canadians—let us call them Liberals—who feel that individuals cannot be trusted to do what is in their own best interests. These so-called Liberals feel that it is their responsibility—indeed, their right—to dictate to others when and how they save for their future.
That is a true story we face with the bill before us. With this ill-considered attempt to raise premiums for the Canada pension plan, the current Liberal government distrusts the ability of the Canadian people to plan for their own retirement. There is no other reason for this ill-conceived tax hike, which members opposite like to pretend is not a tax on Canadians.
They tell us that, over the next 40 years, CPP retirement benefits would rise from an income-replacement rate of 25% to 33% of employment earnings. To finance these benefits, the government would hike the CPP premium from 9.9% to 11.9%, which is about a 20% increase, starting in 2019. In addition, the yearly maximum pensionable earnings would rise to $82,700 in 2025. Earnings between the current and future yearly maximum would be subject to an 8% premium. As a result, CPP premiums would rise by up to $2,200 per year per worker split between the employer and the employee.
I have met with business owners in my riding on many occasions since this plan was first introduced. Just last week, I was told that they were unanimous in their opposition to this plan. They feel that it is like the Liberal carbon tax; it would limit their ability to make a living as the government piles tax upon tax.
This CPP tax hike would take money from the paycheques of hard-working Canadians, putting thousands of jobs at risk, and yet it would do nothing to help the seniors who need it. If the government feels that there is a problem for seniors today not having sufficient retirement funds, why is it bringing in legislation supposedly helping the future generation 40 years from now? Where is the help for Canadian seniors today?
Figures show that some households would be paying up to $2,200 more per year if this ill-planned scheme is implemented. This means that it would be harder for new graduates to pay off their student loans or buy their first home.
It would be harder for families to save for vacations or their children's post-secondary education and harder for companies to create jobs and give workers raises. Make no mistake about it; not only would Canadian workers take home less in their paycheques, but Canadian businesses would also be taxed under this plan. If they have to give more money to the government, that means less that can be passed along to their employees.
Canada's retirement system is already the envy of the world. Poverty among seniors has dropped significantly in recent years, and Canadians are saving more for retirement today than ever before. Conservatives believe in reasonable, evidence-based policies to help Canadians retire with dignity, which is why the previous government expanded the guaranteed income supplement.
The Liberals clearly agree with this approach, since they increased the GIS by 10% in their first budget, but that is different from this plan to force people to save by having the government take more money from their paycheques. It shows a Liberal lack of trust in the ability of Canadians to manage their own money responsibly. Liberals always believe that they can do it better, that Canadian citizens cannot be trusted to handle their own finances. By contrast, the previous government helped Canadians save through the tax-free savings accounts and opportunities to make voluntary contributions to the CPP.
Conservatives believe Canadians should be able to manage their own money, and given the track record of the Liberal government, we believe Canadians cannot trust the Liberal government with their pensions. After all, they have not been able to keep the promises they made less than a year ago, let alone a decade from now, and who knows what their excuses will be in 40 years?
Finance Canada's analysis shows that higher CPP premiums would hurt the economy. They would reduce employment, the GDP, business investment, disposable income, and private savings. The Liberal government, when faced with that information, wants us to trust it and believe that what it is doing is for our own good. Liberal members do not seem to understand why we do not believe them.
According to the Canadian Federation of Independent Business, 70% of small business owners disagree with the Liberal notion that the proposed CPP increase is modest and would have a limited impact on their businesses. They know it is going to hurt. A paper released by the C.D. Howe Institute shows that the Liberals' CPP plan would not benefit low-income workers. They would see their premiums go up, but their net increase in retirement benefits would remain low since higher CPP payments would be offset by clawbacks in GIS benefits.
Bill C-26 would take money from the pockets of hard-working Canadians, who are being given no choice in the matter. The benefits of this tax hike, Liberals tell us, would happen at some point in the far future. If that means less money in Canadians' pockets and fewer jobs because business taxes are too high, I guess they expect us to thank them for that, too.
I have said it before, but it bears repeating. If the government were truly serious about helping Canadians save for retirement, it would reinstate the TFSA contribution levels set by the Conservative government, treat Canadians like adults, and let them choose how to save their money. Instead, we are told that Liberals know best. History has already shown us that is not true.