Mr. Speaker, I want to thank the hon. opposition member for raising the important issue of tax planning using private corporations.
From the beginning of the public consultations we launched in July 2017, Canadians have taken part in an important discussion on proposed measures for addressing the issue of tax planning strategies involving the use of private corporations, which can result in high-income individuals gaining tax advantages that are not available to other Canadians.
During our consultations on the issue of tax planning using private corporations, the government heard from small business owners, professionals, and experts, and it is determined to make sure these measures do not have any unintended consequences.
Regarding passive investments, the government will move forward with measures to limit the tax deferral opportunities while providing small business owners with more flexibility to build a cushion of savings for business purposes to deal with a possible downturn, finance a future expansion, or deal with personal circumstances such as for parental leave, sick days, or retirement.
As the government moves forward with measures to improve the tax system, it is also making good on a commitment to invest in growth. In October 2017, the government announced its intention to lower the federal small business tax rate to 10% as of January 1, 2018 and then to 9% as of January 1, 2019, as my hon. colleague has rightfully pointed out. For the average small business, this will leave an additional $1,600 per year for entrepreneurs and innovators to reinvest in their business and create jobs. With this proposed change, Canada would have by far the lowest small business tax rate in the G7. This is part of the government's plan to grow the economy, create jobs, and help the middle class succeed.
The most recent steps in this plan were laid out in the fall economic statement. That is when the government announced the enhancement of the working income tax benefit by $500 million per year starting in 2019. This measure will improve the financial security of low-income working Canadians. This enhancement is in addition to the increase of $250 million annually already announced and set to come into effect in that year as part of the enhancement of the Canada pension plan.
In the fall economic statement, the government also announced its intention to strengthen the Canada child benefit by increasing the benefit annually to keep pace with the rising cost of living. As of July 2018, the CCB will be indexed to inflation. That is two years sooner than originally planned.
Going forward, our government will continue to take actions to support middle-class Canadians. It also will ensure that corporations that contribute to job creation and economic growth continue to benefit from a supportive tax environment aimed at helping them succeed.