Mr. Speaker, it is a pleasure to rise in the House on Small Business Week, as we celebrate the hard work of all of Canada's entrepreneurs and small business owners, including farmers. I thank the member opposite for this opportunity to discuss tax fairness.
Our government knows that when we have an economy that works for the middle class, we have a country that works for everyone. That is why two years ago, after we were elected, our government took the first steps to building a stronger middle class by lowering taxes for middle-class Canadians. We also introduced the new Canada child benefit that is simpler, tax free, more generous, and better targeted to those who need it the most. There are nine out of 10 Canadian families who are receiving higher benefits, and hundreds of thousands of children have been lifted out of poverty.
Earlier today, the Prime Minister announced the next steps in our plan for a stronger middle class. Our government intends to lower the small business tax rate to 10% effective January 1, 2018, and to 9% effective January 1, 2019. To support this change, the government will take steps to ensure that Canadian-controlled private corporation status is not used to reduce personal income tax obligations for high-income earners rather than supporting small businesses. We are committed to ensuring that unintended advantages are not being used by high-income and wealthy individuals to pay less than their fair share of taxes. Based on what we have heard from Canadians in a series of country-wide consultations on tax planning using private corporations, the government will this week set out its approach to better target strategies used by the relatively small number of high-income individuals who have the biggest advantage from the existing tax rules.
In addition to announcing its plan to lower the small business tax rate to 9% by 2019, the government announced earlier today its intention to simplify its proposal to limit the ability of owners of private corporations to lower their personal taxes by sprinkling their income to family members. The government is taking into account feedback from Canadians and is adjusting its approach to limit red tape and not interfere with genuine family business arrangements. In addition, in response to the comments we have received, the government will not be moving forward with measures that would limit access to lifetime capital gains exemptions. We would like to thank the tens of thousands of Canadians who took the time to share their views, their concerns, and their expertise.
We want to encourage people to invest in their businesses. Small businesses are a critical part of our economy, and the government is taking action to help them grow, invest, and create good, well-paying jobs. The government has listened to small business owners, professionals, and experts during the consultation on tax planning using private corporations, and will act on what it has heard.
The Minister of Finance and other members of the government will continue to meet with people in every region of this country, as we provide more details on the way forward for fairness, a strong middle class, and a thriving business community. Fairness in the tax system allows the government to keep taxes low while ensuring programs and services for all Canadians. Moving forward, changes to the tax treatment of private corporations will be informed by the many Canadians who contributed to these consultations.