Mr. Speaker, I am happy to rise here today to defend an individual of incredible integrity. We have heard a lot of attempts in this place to attack the integrity of the finance minister, but as we have heard, he has worked with the integrity commissioner, and to any questions, he has been more than forthright. Therefore, I am happy to rise here today to talk about the accomplishments of this minister and what he is doing, along with our government, to build a stronger middle class.
Building a stronger middle class does not come without changes. The issue of tax planning and using private corporations is one of those changes that is required to finally bring equity to our tax system, something the finance minister has been behind from the start. We have been working, from the moment we took office, to implement these changes that benefit the middle class and those working hard to join it. These changes that are forthcoming are just another step in setting things right for the middle class, again something the finance minister talked about as a candidate and has now as the Minister of Finance.
We took our first steps when Parliament resumed in December 2015, lowering taxes on the middle class, as promised, and raising them on the wealthiest 1%. Unfortunately, both the Conservatives and the New Democrats voted against that. This middle-class tax cut has been benefiting nine million Canadians, and we are extremely proud of that.
We brought in the new Canada child benefit, which has lifted thousands of children out of poverty, including 16,000 in my riding of St. Catharines. This is a significant accomplishment, and one of the architects of it was, of course, the finance minister. As a result of the Canada child benefit, nine out of 10 families are getting more in benefits than they did under the previous government. With the CCB, we have ensured that child benefits are more generous and are actually targeted to those who need them most.
Our government, under the leadership of the finance minister and working with the provinces, expanded the Canada pension plan to ensure that Canadians have financial security after a lifetime of hard work. The strengthened CPP will provide more money to Canadians when they retire, allowing them to focus more on what matters most: time with family.
As members can see, our actions and the actions of the finance minister could not be clearer. The guiding principle of fairness is essential, and indeed, is the defining piece of our plan to strengthen the middle class. It is abundantly clear that when we have an economy that works for the middle class, we have a country that works for everyone.
It is fitting that we are having this debate during Small Business Week, so let us talk about small businesses. We know that small businesses are the backbone of our economy. They are a key driver of Canada's economy. I think everyone in this chamber would agree with that. Small businesses account for 98% of all businesses and more than 70% of all private sector jobs. In recognition of how critical small businesses are to Canada's growth, our government, and again, the Minister of Finance, are taking action to help small businesses grow, invest, and create good, well-paying jobs.
Yesterday the finance minister announced, along with the Prime Minister and the Minister of Small Business and Tourism, the government's intention to lower the small-business tax rate to 10% in 2018 and then to 9% in 2019. As a result, the combined federal-provincial-territorial average tax rate for small businesses will be lowered to 12.9% from 14.4%, ensuring that Canadians by far will continue to have the lowest small-business taxes in the G7 and the fourth-lowest among the Organisation for Economic Co-operation and Development countries. This lower rate will mean that small-business owners can retain more of their earnings to reinvest, to support the growth of their businesses, and for job creation.
The finance minister also announced the government's intention to move forward on proposals to fix a tax system that is inherently unfair to the middle class. We have heard a lot of criticism about the finance minister, but he is one of the leading voices in this country on this side of the House to fight for a system that benefits the middle class and against those policies that are unfair to the middle class.
We have a tax system currently that encourages wealthy individuals to incorporate just so they can get a tax advantage. This cannot continue. It leads to a solution where someone making hundreds of thousands of dollars can get a lower tax rate than a middle-class worker making much less. A person making $300,000 per year can save as much tax as an average Canadian can earn in a year. This is not acceptable, and our government and the finance minister are going to fix it.
In July, the finance minister launched consultations to hear from Canadians on how to fix things and how to then make—