Madam Speaker, I am pleased to speak to this bill, and I am especially happy to have this opportunity to rise in the House knowing that many members will not have a chance to express themselves because of the government's decision to once again limit the time for debate.
Apparently we will have to do like Chinese billionaires and shell out $1,500 to buy time with Liberal ministers to get them to listen to our concerns. That is really too bad, but that is what it has come to.
I would like to start with something we know to be true. People often say that Canadians are not financially prepared for retirement and could end up living in misery because they do not have enough money. They do not have enough cash in the kitty to fund the retirement they want, a retirement they can really enjoy that does not include frequenting soup kitchens.
This is a serious problem, one we need to tackle at its source. If Canadians are not investing enough for their retirement, perhaps it is because they do not have the means to do so. Although salaries have gone up over the past few decades and interest rates are currently very low, the situation is not perfect for Canadians. That is because such a large portion of their income is taken away by the various levels of government in the form of sales tax, premiums, permits, licences, and income tax. There is no shortage of words to describe how the government picks the pockets of the middle class.
If we want Canadians to be able to plan for their retirement, we need to give them the means to do so. I know this is hard for the members over there to understand. This means giving Canadians greater flexibility so they do not have to hand so much over to all levels of government, until they have almost nothing left to plan for their golden years.
The government loves being generous with other people's money. I would remind members that it is generous with taxpayers' money, including corporate taxpayers. Despite the Liberals' shameful $25-billion deficit, which has not created any wealth, they are not putting any tax dollars into this plan.
However, this will come at a cost to the Canadian economy. This is a glorified tax on businesses and Canadians. The Liberal government unilaterally decided what Canadians will do with an even bigger part of their salary. Our deficit experts are introducing yet another payroll tax.
Instead of working to create wealth, they are undermining it. In many cases, these costs mean the difference between profitability and hardship. Every business, big or small, will be affected by this measure.
I know what I am talking about. I am a businessman and have been a business owner for 21 years. I know all about costs and obstacles to hiring. The more governments drive up the costs, the less appetite there is for hiring. It is as simple as that.
That amount can be significant for large companies with several hundred employees. Production costs for the same output will go up by $100,000, $200,000, $300,000 or more overnight, and we haven't even talked about the carbon tax the Liberals are going to tack on. The future is not bright for our businesses. It is going to take a lot more than a Care Bear stare to grow our economy.
The finance minister's officials confirm our fears about the changes in Bill C-26: the proposed increased contributions will have an adverse effect on job creation. For a government that said it would base its decisions on science, facts, and sound advice from the public service, it is sad to see the Liberals act in this way. They are listening more to Kathleen Wynne that to experts on this. It seems that the Butts and Telfords of this world have more pull than finance department experts.
I have some examples. According to officials at the Department of Finance, the measures proposed in Bill C-26 will have an adverse effect on job creation.
Over 10 years, the drop in job creation will be between 0.04% and 0.07%. These are jobs lost, not created. There will also be a drop in GDP of between 0.03% and 0.06%. A drop in GDP is not synonymous with job creation. There may also be a drop in corporate investment of between 0.03% and 0.06%. When companies invest less, there are fewer jobs for Canadians. There will also be a decrease in disposable income of between 0.03% and 0.06%. Canadians with less money in their pockets means less money to keep our economy going. There will be a 7% drop in long-term private savings. Once again, this measure is supposed to encourage saving for one's old age. However, it will accomplish the exact opposite. People will have less money.
The government is gambling that by increasing taxes it can solve everything. The Liberal government is reverting to its old habits: it thinks that it should not let Canadians manage their own money because they will buy beer and chips instead of investing in their future.
On this side of the House, we believe that Canadians are smart enough to invest in their retirement if we give them the means to do so by cutting taxes. If they do not invest, it is because they do not have the means. If we give them the means, they will invest.
The Fraser Institute reports that a one percentage point increase in the CPP contribution rate reduces private savings by 0.9%. The Liberals' measures only shift the problem rather than resolving it. It is worrisome that 70% of small business owners do not agree that the proposed increase is a modest one and that it will have a limited impact on their businesses. SMEs are Canada's main employers. Could the government listen to them?
The decision to increase contributions was made without consulting Canadians. It would be interesting to consult those who are going to pay for this decision: the public and the employers.
In short, to resolve the problem, the government is proposing to take money away from Canadians who already do not have enough to make ends meet.
I would like to read a quote by Hendrik Brakel, the senior director of economic, financial, and tax policy at the Canadian Chamber of Commerce. On May 31, 2016, he said:
Here at the Canadian Chamber of Commerce, we’re worried a big tax increase is headed for the middle class like an elbow to the chest...
This comes at the worst possible time—an economy reeling from weak commodity prices and slower consumer spending will be lucky to eke out growth of 1.5% next year. It’s difficult to stimulate the economy while pulling money out of the pockets of Canadians.
These people need the government to give them a break, not foist another tax on them.