Mr. Speaker, I would like to take the opportunity at the beginning of this speech to thank all of the people of Peace River—Westlock for giving me the opportunity to stand in the House and make this speech.
Today, I rise to address the issue of fiscal responsibility. The previous Conservative government left the Liberal government a $1 billion surplus. At a time when the rest of the world was in economic turmoil, we kept a steady hand on the wheel and steered our country through that turmoil. Not only did we manage our resources prudently, but we paved a $1 billion road into the future.
In a few short months, the Liberals have squandered that surplus. When they originally introduced their new tax plan, they promised it would be revenue neutral. Since then, the Minister of Finance has conceded that the plan was not revenue neutral and would in fact leave us with a $1 billion in the hole.
A report from the parliamentary budget officer estimates the costs to be closer to $1.7 billion. This gross miscalculation speaks to the government's incompetence, and the fact that the Liberals are proceeding with legislation after admitting they have broken this promise to Canadians. This speaks to their integrity.
In my riding in northern Alberta, we have a number of industries, agriculture, oil and gas, and lumber, to name a few. We are a province of entrepreneurs, business people who understand the necessity of practising fiscal responsibility if they want their businesses to grow and thrive.
A spending spree on the taxpayers dime is not only a sign of poor fiscal management, it is an irresponsible behaviour that has drastic consequences down the road.
Who is going to pay for this shortfall? The Liberal Party has talked about eliminating a number of tax credits. When we look at the available tax credits, it is clear who will pay for the shortfall. It might be first-time home buyers, or families with kids in sports or the arts, or students or apprentices. The very people who need the tax credits will be the ones paying off the Liberals' billion dollar spending spree.
As everyone here knows, the price of a barrel of oil has negatively impacted Alberta. There have been massive layoffs in the oil patch, and this has had a ripple effect in many of our communities.
In my riding, unemployment is up, El applications are up, and the outlook for businesses, especially those connected with the oil patch, is grim. I had a call from a transport truck driver the other day. He is in his fifties and has worked hard his entire life. Now, he cannot find work. Trucking outfits are scaling back, and no one is hiring. His El has run out, his savings are dwindling, and his rent is past due.
Why is the government focusing on tax credits and income tax hikes when what we need is a plan to create jobs? We need a plan to get Canada back on solid ground.
There is a lack of evidence or explanation on why the changes in Bill C-2 would stimulate economic growth and development for Canadians. The Prime Minister believes that small businesses are tax havens. Does he plan on increasing payroll taxes on job creators?
It is important to remember that small businesses create a large percentage of the jobs in Canada. Increasing payroll taxes on our job creators creates an extra burden on companies that are already struggling in these economic times. The fact is that many companies are downsizing right now. Now is not the time to increase business taxes.
Neither is it time to raise taxes on higher income earners. These are the people who traditionally create jobs and grow our overall economy. By increasing taxes on these job creators, we are discouraging success, and punishing those who have done well for themselves. We cannot spend our way to growth, and we cannot tax our way to prosperity.
We have looked at all the tax cuts the Liberals are proposing for the middle class. Based on Finance Canada's estimates, the new Liberal tax plan amounts to, on average, an extra $6.34 per week for those individuals who qualify, and $6.34 might buy a block of cheese or a few litres of gas. This tax break would not be enough to grow our economy. It would not stimulate growth or innovation. This modification to the income tax rate would hardly qualify as a significant tax relief for Canadians and it comes with a much larger price tag.
When the previous Conservative government was in office, we reduced taxes more than 140 times. We have a proud legacy of tax fairness. We cut taxes through targeted measures that were responsible.
We would all be better off if the government worried less about the income tax rate and instead focused on creating jobs so more people could pay in.
There is another amendment I would like to address, and that is the issue of tax-free savings accounts. The Liberals have unaccountably decided to slash contribution limits for the tax-free savings account to $5,500.
Many Canadians rely on these savings accounts to plan for their future. Students save for higher education, couples save to start a family, entrepreneurs save to start a business, parents save for their children, and low-income seniors save for their retirement. These changes would make life less affordable for Canadians who are trying to save for their vulnerable years.
Financial literacy is a subject now taught in some schools. As a parent, I will teach my own children practical money skills. It is an important concept to grasp, that if we want to keep ourselves financially secure and free of uncontrollable debt, financial responsibility is important to the well-being of individuals, families, businesses, and our nation.
A recent report from the parliamentary budget officer points out that Canadians are taking on uncontrollable levels of debt, and we have the highest debt in the G7 at 171% of our annual income. Households now face overwhelming exposure to negative income and interest rates and will likely become delinquent in their debt payment.
Responsible Canadians are looking for a way to save when times are good so that they can be protected. Reducing TFSA contribution limits would reduce the ability of Canadians to save for their retirement and to protect themselves in economic downturns.
TFSAs provide a concrete vehicle for financial independence for Canadians. We should be encouraging responsible saving. Instead, the Liberals are turning a blind eye to financial literacy. They are taking options away for saving and are putting more Canadians at risk. This will translate into a greater burden on all taxpayers to support those who are unable to support themselves.
I would like to point out that this future cost to taxpayers is what the Liberals have neglected to calculate. Fiscal responsibility is a fundamental component of good government. The Liberal tax plan, a plan that runs massive and long-term deficits, will burden the taxpayer and leave Canada more vulnerable to sudden, economic shock.
Our Conservative caucus will stand up for taxpayers and press the government to approach spending in a responsible manner, to protect against risk, and to ensure stability and long-term prosperity.
