Madam Speaker, I rise in the House today in support of Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.
The much-needed budget 2016 is an essential step to growing the middle class and revitalizing the Canadian economy. Budget 2016 has received positive responses from my constituents.
I have received some questions, and I will address these to begin.
The first measure I will be speaking to is the elimination of the children's arts tax credit and child fitness tax credit. These tax credits only benefit families who can afford to enrol their children in arts and fitness programs. It is that simple. This is not the case for many Canadians, including many of those in my constituency. When families do not have money, the tax credit does not matter. We are committed to taking an approach that will help working families. The cost of raising a family was the top issue during the campaign, and it continues to be the top priority in my riding. The bill offers true help to nine out of 10 families.
I will now speak to some of the positive elements of the bill that resonate with my constituents. The Canada child benefit is one of those key positive pieces of the budget. It is a new measure that will begin in July 2016 and will provide simpler, tax-free monthly financial benefits to eligible families. The Canada child benefit will help those who cannot afford to put their children in extracurricular programs. It will give them the option of enrolling the children in programs that would otherwise be financially out of reach. Families who could not enrol their children in arts and fitness programs will now have that chance.
Our government's measures for families with children, combined with the middle-class tax cut, will provide these families with additional net after-tax benefits of approximately $14 billion during the 2015-16 to 2020-21 period. The Canada child benefit will replace existing federal child benefits to provide Canadian families with the additional help that is required with the high cost of raising children. The Canada child benefit will provide a maximum benefit of up to $6,400 per child under the age of six, and up to $5,400 per child aged six through 17, for families who need it the most.
High-income earners will have their assistance reduced, even eliminated. This is good public policy. Approximately nine out of 10 families will receive more under the Canada child benefit than under the current system of child benefits. Ultimately, about 3.5 million families will benefit from this new Canada child benefit, with an average increase of approximately $2,300 annually.
As stated by Rob Carrick of The Globe and Mail, “The new Canada Child Benefit is a solid win over existing programs in both dollar terms and ease of use. The money is tax-free, so it won’t have to be accounted for when completing your income tax return every year.” The is good news.
In addition, the Canada child benefit will help raise nearly 300,000 children out of poverty by 2017. However, it does not end there. Budget 2016 will continue to support poverty reduction in future years. As stated by Anita Khanna, the national coordinator of Campaign 2000, “This is a historic step forward in the battle against child poverty in Canada that is long overdue and long called-for by Campaign 2000 and other groups.”
In line with providing support for the majority of Canadians, budget 2016 proposes to eliminate the income-splitting credit for families. This initiative provides a better solution for helping those who need it the most. We learned during the campaign that many couples did not benefit from this initiative. Our programs are more equitable, and I must note that income splitting for seniors remains.
The second aspect of budget 2016 that I will be speaking to is the introduction of the school supplies tax credit. Educators, often at their own expense, purchase supplies for the benefit of our children, so it is only fair that they are compensated for it. Budget 2016 introduces a 15% refundable income tax credit that will apply on up to $1,000 of eligible supplies. Teachers and early childhood educators will be able to use this credit for the purchase of eligible supplies for use in a school or a regulated child care facility for the purpose of teaching or otherwise enhancing students learning in the classroom or learning environment. This initiative will provide a benefit of about $140 million over a five-year period.