That is right, Madam Speaker.
How did this promise come about? In February 2015, the NDP promised that it would reduce small business taxes from 11% to 9% to give job creators a needed break. The Conservatives played politics at first by voting down the measure, but then, to their credit, inserted the small business tax reduction into budget 2015. During the election campaign, all parties, even the Green Party, supported keeping these tax cuts that would have gone to 9% by 2019.
Political parties cannot agree on the time of day, so this was significant. This was huge. Small business owners felt they could be assured that after years of breaks for big corporations, they would finally get a little help, but then the government tabled its budget. This budget bill would delete all future reductions to the small business tax rate, with no plan to bring them back at a later date. They were just deleted.
It is a fact that this bill would delete all future reductions, but not once have the Liberals acknowledged it. Instead, they say, “Who knows what will happen in future budgets”. That is not a commitment. That is not a responsible way for government to speak to small business people, the people who are the foundation of our local economies. The Liberals made a promise and they broke it. Instead of owning it, they are hiding behind political spin. They will say that they have made all kinds of other promises, on top of other promises, like personal income tax cuts and child care money that will help.
Let us look at the so-called tax cut for the middle class that does nothing for those earning $45,000 a year or less, but really benefits the people earning around $200,000. If Liberals thinks that most small business owners do not benefit from income taxes, then they truly do not understand the business world. Small business people count on every dollar they earn to keep their businesses going, to pay their employees, to pay their rents, and to contribute to the local economy. The child tax benefit measure will not cover the cost of child care, so it is not enough.
It was a promise. The Liberals knocked on doors, visited small businesses, held round tables, all while making their promise crystal clear. There is a word I am not allowed to say in this place, but Canadians know what it means when a promise is made on something with no intention of doing it. It starts with the letter “l”. It was a slap in the face to small business.
Some have asked if small business really need this break, and the answer is yes. Small businesses create 78% of all new jobs in the country. They are the backbone of the economy. Fifty per cent of small businesses earn less than $40,000 a year. Seventy per cent of small businesses earn less than $60,000 a year. I have this information from the Canadian Federation of Independent Business.
If the government was truly interested in growing the economy and creating jobs, it would do everything it could to support small business. It is important that we keep money in our local communities and plug economic leakages. When we look at buying local and spending money in our local community, we can see the multiplier effect. When we spend money at a local business or small business in our community, 46% of that money stays in our community, versus 14% spent at a multinational. Therefore, it is very important that we invest in small businesses and make sure that we keep that money.
As we know, the parliamentary budget officer did a report that said that $2.2 billion is going to be lost to small business by getting rid of the small business cut. When we add the multiplier effect, it is a lot of money to the local economy. If we want to grow our economy, and we want to do it in a way that supports community economic development, we need to invest in small business.
I have spoken directly with small business owners across Canada. Many were counting on this. Small business owners in my community, who have a whale-watching company, told me that they were planning on using the tax cut to help purchase another boat and add to their fleet, but now they are not sure that they are going to be able to afford it. They looked at it over four years.
At the of the day, this is about priorities and fairness. Consecutive Liberal and Conservative governments have slashed taxes for Canada's largest and most profitable corporations from 28% to 15%. We know that a lot of that money ends up being dead money. It ends up in the hands of shareholders and leaves our communities.
We need to invest in small business. If the Liberals truly wanted to, there is nothing stopping them from honouring their promise.
Some might ask how we can afford to invest in small business, the $2.2 billion to do this right. I will give an example, and it is about choices.
Budgets are about choices. Elections are about choices. The current government has a choice. There is $800 million annually being lost through shareholder stock options. CEOs are getting a tax break when they are not paying their fair share. If we close that loophole, it would more than cover the small business tax break.
The Liberal government is making a choice to give CEOs a huge tax break instead of giving it to small business people in our communities. This is very important, because when they say that we cannot afford it, we can. We know we can. It is about choices. To go back to people in our communities and tell them that we are going to choose CEOs who are not paying their fair share over small businesses is a slap in the face.
I really hope that Liberals and members of the House will vote against the bill. Vote for the people at the doors they knocked on. Vote for the people in their communities instead of voting for Canada's CEOs, those who earn the most, and make sure that they pay their fair share. The myth that CEOs will suddenly pull out and that investment will pull out if we close these tax loopholes is wrong. It is not true. Fundamentally, it is not right.
We need the government to do the right thing and make sure that those who can afford it pay their fair share, that those who need a break get a break, and that small business counts and is a priority. We need to build trust with small business people instead of continually breaking trust.
I hope government members and all members of the House will vote against the bill, vote for the small business people in their communities, vote for what is right, and vote for the promises they made.