Mr. Speaker, I rise today to speak to the motion and to update this House on our work and the progress we have made in delivering on our promise to build a stronger middle class. As with all members of Parliament, the Minister of Finance worked closely with the Ethics Commissioner when taking office. As we all know, the Ethics Commissioner is tasked with preventing conflicts between private interests and the public duties of all 338 members of the House of Commons.
Last week, the Minister of Finance announced that he was going above and beyond the Ethics Commissioner's recommendations by establishing a blind trust for all assets held by him and his family. These steps are being taken by the minister so he can maintain the public's trust and so there are no distractions from his important work to strengthen and grow the middle class.
From the moment we took office, we have implemented changes that will benefit middle-class Canadians. One of the government's first actions was to cut taxes for the middle class and to raise taxes on the wealthiest 1% of Canadians. This middle-class tax cut has benefitted and will continue to benefit nine million Canadians.
We also brought in the new Canada child benefit, which has lifted hundreds of thousands of children out of poverty. As a result of the CCB, nine out of 10 Canadian families are receiving more in benefits than they did under the previous system. With the CCB, we have ensured that child benefits are more generous and that those benefits are better targeted to those who need them most. According to economists and the Governor of the Bank of Canada, the CCB has directly contributed to increased household consumption and effectively stimulated our economy.
Our government also expanded the Canada pension plan to ensure that Canadians have security after a lifetime of hard work. The strengthened CPP will provide more money to Canadians when they retire so they can worry less about their savings and focus more on enjoying time with their families.
As everyone can see from our actions, the principle of fairness is embedded in our efforts to strengthen and maintain Canada's middle class. It is clear to us that when we have an economy that works for the middle class we have a country that works for everyone.
Now, let us talk about small business. We all know that small businesses are the backbone of our economy. Small businesses are a key driver of Canada's economy, accounting 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 economy, the government is taking action to help them grow, invest, and create well-paying jobs. Our recent announcements regarding small businesses will continue that work.
Last week, the Prime Minister announced 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, and territorial average tax rate on small businesses would go from 12.9% from 14.4%, by far the lowest in the G7, and fourth lowest among OECD countries. This lower rate will mean small businesses can retain more of their earnings to reinvest in and grow their businesses while supporting the creation of jobs.
The Prime 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. Right now, the fact remains that we have a tax system that encourages wealthy individuals to incorporate. It leads to a situation wherein someone making $300,000 can save as much in tax as the average Canadian earns in a year. That is not fair and our government is determined to fix it.
We have listened to small business owners, professionals, farmers, and fishers during the consultation and are acting on what we have heard to avoid unintended consequences. That is precisely why we are moving forward with a simplified proposal to limit the ability of a small number of high-income owners of private corporations to lower their personal income taxes by sprinkling their income among their family—