Madam Speaker, there are so many reasons why this legislation is bad for Canadians that I hardly know where to begin. The excessive spending the Liberal budget sets out is not targeted and will end up hurting businesses, families and hard-working Canadians in the form of future tax increases.
The budget is about spending. It will stifle economic growth. The Liberals hope that by throwing out buzzwords like “infrastructure” and “Innovation”, Canadians will not notice their true intentions.
When the Liberals took office, taxes were at their lowest point in 50 years, transfer payments had reached an all-time high, our economy was leading the G-7 in job creation and growth since the recession, and the budget was balanced. The Liberal budget is a plan for reckless spending that offers higher taxes, billions in new debt, and no real plan for jobs. It is a fundamental Conservative principle that Canadians should be able to keep their hard-earned money in their pockets.
Before the people of Edmonton Manning gave me their trust as their member of Parliament, I was a small business owner. I have owned and operated a number of businesses since coming to Canada in 1990. I know first hand the importance of balancing the books. I understand the importance of meeting payroll and how much having a good, steady job meant to my employees. I worked hard to build my business, because I knew that in Canada success comes with hard work.
My experience is the same as that of thousands of Canadian businessmen. We work hard and have the satisfaction of creating something. We are not rich, but we earn a living, and through our businesses, we help others earn a living also. That may be why I was so disappointed to hear, during the last election campaign, that the Liberal leader thought small businesses were just a tax haven for the rich. I am not rich, but I have worked hard for what I have. I did not grow up with a trust fund.
Roughly two-thirds of small and medium-sized business owners fall directly into the middle class. Employers are about four times more likely to earn less than $40,000 than more than $250,000.
We know that small business creates jobs, According to Innovation, Science and Economic Development Canada, small businesses account for more than 98% of all firms in Canada and play a large role in net job creation. Small businesses created 77.7% of all private jobs from 2002 to 2012, a little more 100,000 jobs each year on average.
Given those statistics, it would seem only logical that governments would encourage small business owners to grow their business, that government would create a climate in which entrepreneurs would want to invest in expanding their companies, creating more jobs in the process. There is no logic in this bill.
We know the Liberals will have to raise taxes to pay for their out of control spending. It is unfortunate that 700,000 middle-class small business owners who employ 95% of working Canadians are the Minister of Finance's first target.
The Liberals ended the hiring credit for small businesses. The Liberals cancelled their planned youth employment hiring credit. The Liberals have broken their clear promise to small businesses to proceed with a small business tax rate reduction.
Our previous Conservative government encouraged job-creating small business by cutting the rate to 10.5% for 2016, with a planned further reduction to 9% to encourage growth and jobs. In 2015 the Liberal Party told Canadians that, if elected, they would also implement these planned cuts.
Apparently a year ago, they recognized the importance of small business. That does not seem to be the case anymore.
The Minister of Finance has said that the planned cuts would be deferred. He has not given a concrete date for implementation. Perhaps we can expect him to live up to his election promise when we see a herd of unicorns on the front lawn of Parliament Hill. What we do know is that the finance department has estimated that this broken promise would cost the small-business sector $2.2 billion over four years. By increasing taxes on job-creating small businesses, the Liberals are discouraging success and entrepreneurship for the whole country. They are hurting the middle class.
Another one of the provisions of this bill that I find profoundly disturbing is the repeal of the Federal Balanced Budget Act. This is a subject I would hope would be of concern to all Canadians. Let me quote from the preamble of that act:
...a sound fiscal position is crucial to economic growth and job creation over the longer term;
...attaining and maintaining a sound fiscal position requires that the Government of Canada achieve annual balanced budgets and reduce debt, other than when a recession or extraordinary situation occurs;
...maintaining balanced budgets and reducing debt helps to keep taxes low, instill confidence in consumers and investors, strengthen Canada’s ability to respond to longer-term economic and fiscal challenges and preserve the sustainability of public services;
...reducing the debt burden will help to ensure fairness for future generations by avoiding future tax increases or reductions in public services;...
The Federal Balanced Budget Act requires the Minister of Finance to be accountable to this House. If he wanted to run a deficit, he would need to appear before the appropriate committee, make a case for the deficit, and present a plan for a return to balanced budgets. I can understand why this is a concern for the current government. After six months in office, the Liberals have discovered that despite their leader's assurance, budgets do not balance themselves.