Mr. Speaker, I will be sharing my time with the hon. member for Mount Royal, who, like me, spoke in French during Monday's debate on Bill C-10. I wanted to make that correction since the hon. member for Outremont misinformed the House about that on Tuesday. In fact, I speak French more than he does in the House. He would contribute more to the quality of the debates in the House if he checked the facts before making unfounded accusations.
I rise to speak to one of our key election promises: the 7% tax cut for the middle class, whose tax rate will go from 22% to 20.5%; the tax increase for wealthier Canadians from 29% to 33%; and the reduction in the TFSA annual contribution limit from $10,000 to $5,500.
I commend the Parliamentary Secretary to the Minister of Finance and my riding neighbour, the hon. member for Saint-Maurice—Champlain, on his maiden speech. Our ridings meet along a provincial gravel road, Parent Road, where government signs strongly advise the use of CB radios. This border is located more than 300 kilometres north of Montreal, not far from the community of Parent.
Bill C-2 is important to the growth of the middle class. It includes crucial changes to Canada's tax system. The legislative summary of the bill is quite clear:
This enactment amends the Income Tax Act to reduce the second personal income tax rate from 22% to 20.5% and to introduce a new personal marginal tax rate of 33% for taxable income in excess of $200,000. It also amends other provisions of that Act to reflect the new 33% rate. In addition, it amends that Act to reduce the annual contribution limit for tax-free savings accounts from $10,000 to its previous level with indexation ($5,500 for 2016) starting January 1, 2016.
These changes will benefit Canadians, so naturally, they are looking forward to them.
I also want to congratulate my colleague from Louis-Hébert on his speech. I rose to reply to him a couple of times, but better members were recognized before me. The life of an MP is complicated.
I would like to point out that the member for Louis-Hébert alluded to the fact that budget 2016 provides for a deficit. He also said that his government was responsible for all of the good things that came out of the last term of office. He is very happy to take credit for all of the positive results, while saying that his team had nothing to do with anything that went wrong.
Investments in the middle class and economic growth for ordinary Canadians are very important to me, the government, and the millions of Canadians who will benefit.
The member for Louis-Hébert also said that the Conservatives left the House clean. That is not completely true. The Conservatives sold the house to pay off the mortgage. They waved the cheque from the sale in the air for all to see before giving it back to the bank to pay the mortgage. The house was not really clean. It was gone. There are now deficits in the middle class, in infrastructure, and in all levels of government.
My colleague from Rimouski-Neigette—Témiscouata—Les Basques is a bit more reasonable. He presented fact-based arguments about our policies. I really enjoyed listening to his speech. I do not agree with him when he says that these tax cuts do not help the middle class. I agree with my colleague from Mount Royal, who asked why the New Democrats did not promise to cut taxes in their platform but did promise to balance the budget.
With the exception of the members of the former government, who still think that they left a massive surplus, even though that is not quite true, I think it is clear to all of us that it would only be possible to balance the budget this year if we used extreme measures, such as austerity, which is a very unpopular policy in any country.
I short, I am not worried about these deficits because they are investments. That is the case with Bill C-2. I would like to give my colleague from Louis-Hébert a little bit of background on deficits. Almost 100 years ago—