Debates of March 7th, 2017

Opposition Motion—Tax Fairness

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, I grew up in a simple home where hard work was just part of our life. My father worked in the forest industry, and my mother continues to be a psychiatric nurse. When the forest industry struggled, our family struggled but we always worked hard.

My family instilled in me a desire to ensure I always paid my fair share. My parents always told me, and I have always told my children this, not to complain about paying taxes, that this investment went into the important things like health care, highways, and helping those in need.

This is what we are here to talk about today, paying our fair share, ensuring all people in Canada are paying their part so we can build a strong country, invest in those things that build our social network, and keep the standard of living balanced in our country.

We are here today because everyday hard-working people are paying their fair share, even when it hurts. While these folks are doing their part, some with so much more are finding ways to not pay their part.

I would like to thank the NDP finance critic for bringing forward this motion, which is meant to address systemic inequalities in our fiscal system. Tax evasion, loopholes, shell companies, and tax havens are tools to avoid paying taxes. For weeks, KPMG has made headline after headline. Every couple of months we hear a similar story, creative money-peddling accountants finding a new way to cheat the system, and millionaires and billionaires finding ways to hide their money.

I want to be really clear. This money is made off the labour of someone. Their profit is at the expense of hard-working people across Canada. This is why ending tax loopholes is so important. We must look at this seriously because it is about the value of the working person. There are so many revelations that sometimes I have the urge to simply not read the articles. It is disheartening when so many people in my riding of North Island—Powell River are struggling hard every day. These stories pop up every couple of months, year after year, and we are still waiting for some real solutions.

We have all read at some point about creative money-peddling accountants finding new ways to cheat by whatever means and pushing countries in a race to the tax bottom, or pressuring the government not to take up the fight. Despite this, I still strongly think we cannot give in, that we can slowly and smartly take steps to dismantle these schemes and strengthen our Income Tax Act. This is so important. It is about the hard-working people in Canada who are paying more than their fair share, while rich people, millionaires and billionaires, are hiding their money.

I am so proud that today's motion offers some very specific examples of what Parliament should take very seriously moving forward. One example is the recent deal given to clients of KPMG, which facilitated their tax evasion, that freed them from any future civil or criminal prosecution, as well as any penalties or fines. In my riding, if people owe just a little, they are absolutely paying penalties and fines, even when it hurts them to do so.

The NDP is calling for a full investigation into the KPMG affair. Ending penalty-free amnesty deals for individuals suspected of tax evasion, a gift to wealthy tax evaders and aggressive tax avoiders, should seriously be considered. Enough is enough.

Another example is changing the corporate tax rules that allow for the use of shell companies, which serve no economic purpose other than to protect the wealth of the ultra rich. It plays an important role in large scale money laundering activities. At the heart of the Panama papers was the law firm Mossack Fonseca, which managed more than 300,000 companies over the years. This is unacceptable.

This debate is also a great stepping stone to this year's debate on the budget because of the opportunities and priorities of the budget and what they can do for all of us.

First, this is an opportunity for the finance minister, by addressing these special credits and loopholes that cost the government more than $100 billion in forgone revenue per year. If even a portion of this sum were recuperated, it could pay for a national pharmacare program, a national child care program, and upholding equal care for first nations children. We are still waiting for that amount of money to be provided for children who are suffering across our country.

Second, budgets are about priorities. In my riding of North Island—Powell River last week, I participated in the Coldest Night of the Year walk. I was tremendously pleased that so many from the community of Campbell River, across the riding, and other communities came and fundraised. They know the reality of people who do not have homes, or do not have appropriate food, or struggle every day just to survive.

It is so important to remember the people who pay their fair share and fight hard just to survive every day when we see what is happening with tax loopholes and tax evasion. I am very keen to take a close look at the proposed measures in due time to ensure fairness, including fiscal fairness, is finally taken seriously. Canadians deserve that.

The Liberals have not taken tax fairness very seriously in the past, and it is time to change that. If we take a step back for a moment, we see two parties in the House defending their sad record. They will share vast amounts of numbers, like the amount invested in the Canada Revenue Agency, recapturing funds, along with many fairytales, but Canadians are not fooled by these smokescreens. They know that lost revenue is due to misguided priorities and discarded promises.

One of the broken promises has to do with the stock option deduction. After promising during the last election campaign to fully tax individual stock option gains exceeding $100,000, the Liberals announced they would leave it untouched after they formed government. Again, hard-working Canadians are paying their fair share every day. It is only reasonable for us to hold to account those who are not paying their fair share.

We have now learned of intense lobbying by Bay Street CEOs, who benefit greatly from this measure, to keep the loophole open. At some point, we have to make the decision, and I hope the Liberal government will actually take steps toward ensuring that not only hard-working Canadians pay their fair share, but that the CEOs of companies pay their fair share as well. This loophole benefits the ultra rich, yet successive Liberal and Conservative governments have given up billions of dollars in tax revenue over the past three decades due to this loophole. The Liberals' flip-flop on the stock option loophole shows the influence that powerful insider lobbyists have on the government's policies.

The people who have influence on my priorities are the people who I serve in North Island—Powell River, people who work really hard every day, who have had to face the challenges of a changing economy, seeing a resource-based economy, watching as forest companies struggle, and watching as trees are shipped out of the riding. They want more of those good-paying jobs in their communities and they want to ensure they are not paying more than their fair share when other people are not paying what they should be.

The government's systemic acceptance of tax fraudsters and their entities is enabling them to cheat the system. Our system allows every citizen to contribute equitably to public services and social programs. If they do not, every Canadian is cheated.

In its 2016 annual report, Oxfam blamed tax havens on income inequality for much of the widening gap between the rich and the poor. Canadians want better health care, community infrastructure, good jobs, and for us to tackle climate change. Instead, the Liberals are maintaining tax loopholes that benefit Canada's wealthiest, while leaving most Canadians behind.

Seniors are making choices among heat, medication, and housing. Families cannot afford day care or even the toonie it takes to send their kids on school trips. It is time everyone pay their fair share and stop leaving the burden on the people who work the hardest and struggle the most.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, like other New Democrats who have spoken, all I can do is reinforce this. Since the Liberal Party became the government back in October 2015, the number one priority has been Canada's middle class and those aspiring to be a part of it. Those are the individuals who are influencing the government's policy today. Whether the New Democrats want to believe it at this point, quite frankly, is somewhat irrelevant. I believe Canadians understand and appreciate that our priorities are for the middle class and those aspiring to be a part of it. Our policies demonstrate that very clearly.

I have mentioned the international treaties and the $444 million, tangible actions that have been taken to deal with the issue of tax avoidance. Could the member provide her thoughts on those two actions the government has taken? Would she not agree that this is a step forward?

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, the reality for the people of North Island—Powell River who work hard every day is that they are not seeing the changes they need to see.

They want to see proper investment in their communities, in infrastructure, making sure that all of that aging infrastructure is actually cared for so that we can also see those jobs coming into our communities. They are very concerned about this cash for access that they seeing, where people with a lot of money are suddenly getting opportunities. They want to know that the government is on their side, and they are not seeing that.

The reality is the so-called middle-class tax break does not include people unless they make $45,000 or more. That is a small amount of money that they will be getting. We want to see people who are struggling every day, working minimum wage jobs, getting the support that they need.

As well, it is about seniors who are facing multiple challenges. They cannot afford their medication. The government is signing deals that make sure their medication costs are going to go up. When is it going to end?

Those costs are being downloaded on the people who need the most help, while the people who make the most are getting away with tax evasion. Shame on the government for not doing its job.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, I am particularly happy to see one of my NDP colleagues seize upon this issue, because we in the Bloc Québécois have sometimes felt a little alone when debating this matter in the past.

Earlier, I asked a question a number of times to her colleagues. In Quebec, we have ways of fighting tax evasion. When KPMG is offered an amnesty, for example, the message that is sent to fraudsters and tax avoiders is that they can try their luck, and if they are caught they will have no fine to pay, they will just have to repay what they owe. They can try their luck, and if they aren’t caught, they can keep the money. That is the vision being defended by the federal government.

We are proposing a new method: as soon as an investigation is opened, the information is sent directly to Revenu Québec so it can initiate proceedings and retrieve its money if Canada does not. Earlier I asked my NDP colleagues this question twice and received no response.

I don’t know if it is the word “Quebec” that is scaring my colleagues, but I would like to know their thoughts.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, what we are talking about is something that is so important, which is whether we are all paying our fair share. If we are not paying our fair share, what is the recourse to addressing that issue?

What we are seeing is people negotiating internally, people with a lot of resources, a lot of wealth are saying that if they get caught breaking the rules, they will just have to reimburse it, not pay a fine.

When we look at the reality of everyday Canadians who are working so hard just to save up to pay for their kids' braces or their kids' education, hoping that when their kids get bigger they can afford a pair of shoes. These are everyday Canadian realities.

Then we have the very wealthy not paying their fair share, not being held accountable, and those resources not going into making sure that they are held accountable for when they cheat the system. We need to see the government step up. We need to see actual action. We need to see some movement. It is only right that we protect the Canadians who struggle the most.

[Ruby Sahota, Liberal, Brampton North, ON]

Madam Speaker, before I begin, I wish to inform you that I will be splitting my time with the member for Rivière-des-Mille-Îles.

Let me begin by saying that when we have an economy that works for the middle class, we have a country that works for everyone. Since coming into office, our government has worked to bring confidence and optimism back to Canada's middle class and to help those working to join it. We remain committed to doing even more.

One of our government's first actions after coming into government was to raise taxes on the wealthiest 1%, so we could lower taxes on the middle class. We reduced the 22% federal income tax rate to 20.5% for 2016 and subsequent taxation years. This tax cut is already benefiting nearly nine million Canadians. Single individuals who benefit will see an average tax reduction of $330 every year and couples will benefit by seeing an average tax reduction of $540 every year. This means more money in the pockets of the middle class. To help pay for the middle-class tax cuts, the government raised taxes on the wealthiest Canadians by introducing a new top income tax rate of 33% for individuals with a taxable income of more than $200,000 per year.

Our government then proceeded with one of the most significant social policy innovations in a generation; that is, bringing in the new Canada child benefit. The CCB is giving nine out of 10 families and their children more money every month to spend on everything from school supplies to sporting equipment. Families who benefit saw an average increase in child benefits of almost $2,300 in the 2016-17 fiscal year. The CCB has tremendously helped families in my riding of Brampton North. Raising a family in Canada can be challenging and the CCB has helped ease the financial burden for Brampton North families who need it most.

Our government is also taking important steps to make sure that Canadians today have a more secure and dignified retirement in the future. Just last week, we marked the final step in implementing the enhancement to the Canada pension plan.

Taken together, these actions will help strengthen and grow Canada's middle class and, in turn, our economy and our country will be stronger than ever before.

Let me turn to the issue brought forward by this motion today; that is, ensuring a fair tax system for Canada. We believe every Canadian must pay their fair share of taxes, period. Underground economic activity, tax evasion, and aggressive tax planning stand in the way of tax fairness. Too often, it is hard-working, middle-class Canadians, like those in my riding of Brampton North, who pick up the tab for the selfish motives of certain individual businesses that look to gain an unfair advantage. This is totally unacceptable. That is why our government has taken, and continues to take, action to crack down on tax evasion and to combat aggressive tax avoidance.

Part of the government's strategy to fight these problems includes providing the Canada Revenue Agency with sufficient resources to administer and enforce tax laws. For example, budget 2016 committed $444.4 million to enhance the CRA's efforts to crack down on tax evasion and to combat tax avoidance by taking a number of actions. These include hiring additional auditors and specialists, developing robust business intelligence infrastructure, increasing verification activities, and improving the quality of investigative work that targets criminal tax evaders.

Budget 2016 also invested $351.6 million to help the CRA improve its ability to collect outstanding tax debt, which will help collect approximately another $7.4 billion in tax debt owed to the Government of Canada.

Furthermore, Canada's tax system requires ongoing adjustments to ensure it is functioning as intended and contributing to the objective of the economy that works for everyone. That is why internationally Canada is actively engaged in coordinated multilateral efforts to address base erosion and profit shifting, also known as BEPS, which refers to international tax planning arrangements undertaken by multinational enterprises to inappropriately minimize their taxes.

Here at home, we are working to prevent the ability of high net worth individuals to use private corporations to inappropriately reduce or defer their taxes. To help address this, budget 2016 introduced measures to prevent business owners from multiplying access to the $500,000 small business deduction using complex partnership and corporate structures; and to close loopholes that allow private corporations to use a life insurance policy to distribute amounts tax-free that would otherwise be taxable.

The measures I mentioned today are by no means exhaustive, but they do give a good indication of the attention that the government is placing on combatting tax evasion and avoidance. Seeking out tax evaders and avoiders is about fairness and Canadians want fairness

By taking action to prevent tax evasion and close tax loopholes, we will improve the fairness and integrity of the tax system, and contribute to fiscal sustainability, both at home and abroad. We believe that our plan is the right one to improve the integrity of Canada's tax system.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Madam Speaker, perhaps the member can explain why her government has decided to renege on its promise to remove the tax writeoffs on the corporate tax options. It remains puzzling to us that the Liberals promise while they run and then when they get in government they say they will listen to the lobbyists.

The member and her colleagues raise the issue that they are spending $500 million of Canadian taxpayers' money over five years to try to catch tax evaders, yet they are not spending one cent to take these evaders to court and get convictions so that there will be punishment instead of gain. Simply paying back the money, what kind of a message is that to tax evaders? Okay, go ahead, follow this scheme and if they get caught they just have to pay it back but they will have profited by then anyway.

[Ruby Sahota, Liberal, Brampton North, ON]

Madam Speaker, I would like to first address my hon. colleague's question by saying that the CRA's domestic and offshore audit activities have put the government in a place to raise assessments over $13 billion this year. That is $13 billion back in the pockets of Canadians and back to the government. That is a good way of making sure that fairness within our system is served. The money that is being put toward the CRA is improving its efforts to catch tax fraud and tax cheats. We are working hard on that and we can see the results in the money that we are attaining as a result.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, the member talked about the middle-class tax break and how the Liberals have invested in nine million Canadians, but for some reason they left out 17.9 million Canadians who earn $23 an hour or less who get nothing from the middle-class tax break. The government promised also to reduce the small business tax rate from 11% to 9%, which it did not follow through with.

In the election Liberals also promised to close tax loopholes for CEOs who are the highest earners in our country, which costs Canadians about $750 million per year. In fact, the Liberal and Conservative governments have supported tax breaks for CEOs, supported tax havens for the rich, all on the backs of Canadians.

I wonder why the government is choosing tax breaks for Canada's richest CEOs over Canada's small businesses and over the 17.9 million Canadians. Maybe the member can explain to people at home who did not get a tax break from the middle-class tax break and explain to everyday Canadians why the super rich are getting a free ride with this legal tax agreement that is the biggest economic leakage in Canadian history.

[Ruby Sahota, Liberal, Brampton North, ON]

Madam Speaker, many middle-class Canadians have benefited from our government's tax cut this year. We have also raised a lot of money by increasing the tax on the top one per cent of earners in this country. In addition, the Canada child benefit has served nine out of 10 families in Canada; we have raised 300,000 children out of poverty. Many efforts are being made to catch tax avoiders and tax cheats. Increased information-gathering capabilities and tools have been given to the CRA to access more information than ever before. The CRA is now better positioned to identify high-net-worth individuals, businesses, and organizations engaged in tax evasion. We are catching the individuals who had been avoiding taxes for years, and the government and Canadians will benefit as a result.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, it seems like the government is in a tight spot without even realizing it.

On the one hand, it brags and asks us to trust it because it is investing $444 million in fighting tax evasion and plans to recover some money. On the other hand, it hosts $1,500 cocktail parties with people with deep pockets, those with piles of money who are granted amnesty when they are caught for tax evasion. Then, the government opposes bills that could put an end to tax evasion in tax havens.

How can we trust the government when it acts this way? It says one thing, then does something completely different.

[Ruby Sahota, Liberal, Brampton North, ON]

Madam Speaker, we made a promise to Canadians in this past election. Our government promised to treat the middle class as it deserves, to treat Canadians as they deserve, and those who want to join the middle class, to give them that chance to put their foot forward. We have been committed to that promise. We have lowered taxes on the middle class. We have increased taxes on the top one per cent. We have given back to Canadians through the Canada child benefit. We have taken many actions to improve the lives of Canadians and to put money back in the pockets of Canadians. The money invested in CRA is helping catch, as I have said before, those tax cheats and those tax avoiders, and that will benefit Canadians in the long run.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I would first like to say that when the economy is working for the middle class, the country is working for all Canadians.

Since our government came to power, we have tried to restore the confidence and optimism of Canada’s middle class and help people seeking to join it. That is the case in Rivière-des-Mille-Îles and it is the case everywhere in Canada, and we continue to be determined to do even more.

One of the first things done by our government was to reduce taxes for the middle class. We have reduced the federal income tax rate to 20.5% from 22%, for 2016 and the years after that. This tax reduction is already benefiting nearly nine million Canadians. Individuals without spouses who benefit from this will see their tax burden lightened by an average of $330 each year, and couples who benefit will have their burden lightened by an average of $540 each year. That means that these people will have more money in their pockets, and that will result in a stronger middle class.

To help finance this tax reduction for the middle class, the government raised taxes for the wealthiest Canadians by introducing a new personal income tax rate of 33% for individuals with taxable income in excess of $200,000 per year.

Our government then implemented one of the most important social policy innovations in a generation: the new Canada child benefit, which is helping 10,300 families, with 18,870 children, in my riding. The benefit means that nine out of 10 families with children are receiving more money each month that they can spend on things ranging from school supplies to sports equipment

The families this measure helps have seen their child benefits rise by nearly $2,300 per year, for the 2016-2017 benefits. For myself, my constituents in Rivière-des-Mille-Îles receive about $530 per month. Some of the constituents I meet tell me how important the Canada child benefit is for them and for their children’s welfare.

Our government is also taking important steps to ensure that young Canadians today will be able to enjoy a more secure and dignified retirement in the future. Only last week, we completed the final stage in the implementation of improvements to the Canada pension plan. This set of measures will help to strengthen the middle class and move middle-class Canadians forward.

I would now like to address the issue raised by today's motion, which is ensuring the fairness of Canada's tax system. The underground economy, tax evasion, and aggressive tax planning stand in the way of tax fairness, and too often it is hard-working middle-class Canadians who foot the bill for the selfishness of individuals and businesses looking to gain an unfair advantage.

Let us be clear: that is totally unacceptable. That is why our government continues to take action to tackle tax evasion and combat aggressive tax avoidance. As part of its strategy to counter these practices, the government provides the Canada Revenue Agency with sufficient resources to implement and enforce tax laws.

For example, the 2016 budget included a commitment of $444.4 million to allow the Canada Revenue Agency to do even more to crack down on tax evasion and combat tax avoidance using various measures. These measures include hiring additional auditors and specialists, developing solid business intelligence infrastructure, intensifying audit activities, and improving the quality of investigative activities that target cases of criminal tax evasion.

The 2016 budget also allocated $351 million over five years to the Canada Revenue Agency to help increase its ability to recover outstanding tax debts, which will facilitate the collection of $7.4 billion in taxes payable to the government and to Canadians.

Furthermore, Canada's tax system requires constant adjustments in order to function as intended and help us achieve an economy that serves all of the people. That is why Canada is actively involved in coordinated multilateral activities at the international level to combat base erosion and profit shifting, namely international tax planning mechanisms used by multinationals to inappropriately reduce their taxes to a minimum.

In Canada, we are working to block the ability of wealthy individuals to use private companies to inappropriately reduce or defer their taxes. To address this concern, the 2016 budget contained measures to prevent business owners from taking advantage of the $500,000 small business deduction more than once by using complex corporate and partnership structures, and to eliminate loopholes that allow private companies to use a life insurance policy to distribute amounts tax-free which would otherwise be taxable.

The measures that I have mentioned today are by no means exhaustive. Nevertheless, they do provide a good indication of the attention the government is giving to combatting tax evasion and avoidance. Measures targeting people who engage in tax evasion are about fairness. By working to prevent tax evasion and eliminate tax loopholes, we will improve the integrity of the tax system and contribute to the sustainability of public finances at home and abroad.

I am firmly convinced that our plan is the one needed to enhance the integrity of the Canadian tax system.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, we have watched legal tax agreements that have contributed to an increase, from $45 billion leaving our country in 2011 to $108 billion in 2015. These amounts are leaving Canada and going to tax havens, which is leading to what is now the greatest economic leakage in Canadian history. This does not include tax breaks for CEOs or loopholes. It is costing taxpayers over $7 billion a year, which is about $200 million a year per riding in Canada, and that is on the low side.

I think about what $200 million could do in my riding. It could do all of the infrastructure upgrades in water and sewer, it could create a bunch of affordable housing units that are needed, and the list goes on and on. We know the needs are huge in our country.

Maybe the member agrees with me. Can she tell me if she supports ending these legal tax agreements, to close tax havens and stop this historic economic leakage in our country? Perhaps the member could elaborate on what she could do in her riding with $200 million a year.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I thank my dear colleague for his question.

I will leave it to the Minister of Finance to decide what he will do with the $200 million per year in the next budget. As for what the hon. member just asked me, I will say that we have taken some vigorous measures on tax avoidance, both in Canada and overseas.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, I am very concerned about the way the Liberal government is managing things at this time.

From feature television reports, we are learning that some big fish are taking their money and putting it in tax havens with impunity, and afterward, arrangements are made with them so that they do not pay any penalties, or if they do, only if they are caught. What is more, when they are caught, they are told that they are not obligated to pay any penalties if they make a voluntary disclosure.

Then, the numbers get fudged a little. Why does this happen? This remains a mystery to me, because while these tax havens are exploding, swimming in the money that is going down there, the Canadian middle class finds itself taxed more and more, and corporations less and less.

Why is the government closing its eyes to what is going on? Is it being told by the Bay Street financiers to do nothing?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I thank my colleague for his question.

At the international level, it is a very lengthy process. We have taken coordinated measures with some partners, such as implementing improved disclosure standards that are approved by the G20 leaders, standards they will help us put an end to the loopholes; signing tax treaties with other administrations, thereby helping to provide information to deal harshly with persons all over the world who commit tax fraud; and honouring our international obligations to implement common standards for disclosure and reporting on the erosion of the tax base and the transfer of profits.

[Jenny Kwan, NDP, Vancouver East, BC]

Madam Speaker, with all of these tax measures, it has been estimated that Canadians are losing out to the tune of $100 billion in monies that should be invested in supporting Canadians. For example, the national pharmacare program is estimated to cost about $6 billion annually. The national child care program, on the eve of International Women's Day, would be $5 billion annually. To support indigenous children who do not have access to equal education opportunities would only cost $155 million. I would like to ask the member, would it not be better to close the tax loopholes, shut down the tax havens, change the tax credits that the Liberals and Conservatives successively over many years continue to give away to the wealthiest, the ultra-wealthy, and the big corporations with their tax measures, and take that money and invest it in Canadians at home where it is needed?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, you spoke of tax measures. In our budget 2016, income tax rates fell from 22% to 20.5%, while the rate for people with an annual income of $200,000 or more rose to 33%.

You spoke of supplementary expenditures in the ridings. As I mentioned in my speech, in my riding there are 10,300 families, including 18,870 children, who will benefit from this. That is equivalent to an average of $530.

For these reasons, I believe we are managing public finances very well, and I am sure that you are very eager to see our budget 2017.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I remind the hon. member that she is to address the chair. I am not the person who made the comments that she raised.

Resuming debate, the hon. member for Elmwood—Transcona has the floor.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, before I begin my speech, I would like to inform you that I will be sharing my time with the member for Longueuil—Saint-Hubert.

I am pleased to rise today to talk to an issue finally that really matters to people in my riding, and if the motion were to pass, would actually do something for them. We spend a lot of time talking about various issues which the different parties bring forward, but I am not always convinced that the subject is really top of mind for my constituents.

The idea that people who in half a day make what an average Canadian worker makes in an entire year send that money to Barbados and do not pay tax on it, or who decide around the corporate board table to get paid in stock options instead of a salary and not pay the same tax on that money, is outrageous.

There is an important principle at stake here. It is one which separates the NDP from the other two traditional parties in the House which have spent a long time working together to find ways to help people who are already rich and powerful shelter their money and not pay their fair share of taxes. That is something on which Canadians want to see us take action. People where I am from want to see us take action on this.

People go out to work every day and they pay their fair share of taxes. They are also looking at their families and noticing that as their parents and grandparents age, they need help with health services. The cost of drugs is high. Yet, we have heard successive Liberal and Conservative governments, no matter what they promise in their platforms, plead poverty. They claim not to have money for a national pharmacare program. They claim it is too expensive and ask where they would get the money. It is pretty hard to believe government, whether it be Conservative or Liberal, that we do not have the money, when we see the amount of money that is bleeding out of the Canadian economy every year because people who make obscene amounts of money do not want to pay their fair share of taxes.

It is hard to believe that we do not really have the money. The problem is that the Liberals and Conservatives would have to stand up to their friends in order to get it. Canadians deserve a government that is willing to stand up to corporate Canada and say, “You are here making money in Canada. You have to pay your fair share.” Companies are making money in Canada and they are making that money because Canadians go to work every day and produce value for those companies. Government should stand up and tell them to pay their fair share so that when a mother gets sick and needs a certain prescription drug regimen, she can afford it. When Canadians are going out to work to produce that value for those companies, the companies should chip in their fair share so that their workers can have proper child care so that their kids have a safe place to be during the day. The workers are producing value for the people and companies that cannot be bothered to pay their fair share in taxes but instead think that sending their money to Barbados is an acceptable way to conduct themselves.

This issue is one of the main drivers for my participating in politics. I look at the old line parties, be they Liberal or Conservative, and the way they fold when powerful, rich folks come to Ottawa to tell them what to do, and I think it is disgusting. Canadians deserve better.

As an example, we thought that maybe the Liberal Party was about to kick its old habit of kowtowing to the rich and powerful in Canada in the last election when the Liberals agreed to close the stock hold loophole for CEOs. It is in black and white in the Liberals' platform. That was a promise. Nothing changed from before the election to after the election, except that the Liberals were elected. They knew they had four years in government and they did not have to keep their promises to Canadians. That was their attitude. The only thing that changed was that they were elected. Then the Bay Street lobbyists came to Ottawa, and the evidence is in the lobbying registry, and spoke to their buddy the minister of high finance and said, “Mr. Minister, please, you can't do this. It is going to cost me so much money I am going to have to get the “B” class yacht instead of the “A” class yacht.”

Can the Liberals go to Canadian families and tell them there is not going to be a national pharmacare plan? Can they go to Canadian workers, the ones who are working for me, and tell them they cannot get reliable access to safe child care because people do not want to be embarrassed when they go down south for a month and their yacht is not the nicest on the dock? Imagine the nerve and the gall of what is being said in those private conversations and what is being asked of ordinary Canadians who not only need help but are working and paying their fair share for a system in this country that they want to deliver on the things they need, be it child care, be it a drug plan, be it investments in home care.

We have a government that is unwilling to go after tax cheats. It is giving them amnesty. Then the government is saying it does not have enough money for home care so the provinces are going to have to accept the Harper escalator on health care. If the provinces want just a little home care money that the government eked out for Canadians, which was an election promise that was to be flowed immediately, the government managed to find a little of that money but it is not going to give it to the provinces unless they sign on to the Harper escalator.

That is where politics has gone in this country under the Liberal government. It is using promises it made and money that should have been there, that the government promised would be there, to hold provinces hostage unless they accept less health care funding overall, funding which would have a direct benefit to Canadian working families. In the meantime, the government is instructing the CRA to give amnesty to the people who are taking money out of the Canadian economy and sending it elsewhere. It is reprehensible.

We could talk about other current issues, for instance, worries about whether we have enough resources to accommodate refugees, whether we are doing our fair share when it comes to first nations and giving them what they are owed in order to get those communities back on their feet. Again, governments plead poverty, be it a Liberal government or a Conservative government. It ends up the same.

The fact of the matter is we produce a lot of wealth in Canada. If the people who are making the most, those at the top, would pay their fair share, we could afford to do these things.

There is a revenue problem in Canada. It is not because the revenue does not exist. It is not because the wealth is not being produced. It is not because we cannot pay for these things. It is because the government will not pay for it, because it means challenging its buddies. That is not fair to ordinary Canadians who are paying their fair share, who are going to work every day, and who thought they were voting for a government that was willing to do that.

The government talks about its tax cut for the middle class. The Liberals cannot define the middle class, so it is interesting to hear them use the term all the time. In fact, they put in writing that they could not define the middle class. At least we can say that the middle class according to the Liberals does not include anyone who makes under $45,000 a year.

Then the Liberals promised they would make up for that tax cut at least by instituting a new tax on those making the most, and that that was going to be revenue neutral. Well, they did bring in that tax increase, but they did not do it on the basis of paying for the tax cut for the middle class. The people who got the most benefit out of that tax cut already make six figures. There we have it again.

The Liberals were going to do the Robin Hood thing. They were going to tax the rich, bring in a whole new tax bracket. They were going to pay for this tax cut that was supposed to be for the middle class but actually ended up being for people making six figures, and they could not even get that right. At the end of the day, they actually reduced government revenue to give a tax cut, the maximum benefit of which went to people making six figures, and in the meantime granted amnesty to the people we know are Canada's worst tax cheats.

How does that square with the notion that the Liberals are going to courageously go after Canada's wealthy to give a fair shake to ordinary Canadian workers? For those in the House who are wondering and those at home who are wondering, it does not square. That is why I am glad to be sitting in a caucus of 44 people who are willing to say so and put it on the record, because if it was up to the other two parties, no one would be saying that much.

It is important to speak truth to power. It is something the Liberals promised to do, but when the Bay Street lobbyists came and the decision point came and they actually had to do the deed, they actually had to say, “Sorry, rich guys whom I really want to be friends with because you are just so cool, and maybe I will get to ride on your helicopter to a private island, but we are going to have to do something that costs you money.”

When it came down to it, the Liberals could not do it. They just could not do it. The Liberals just want to fit in so badly with the rich and powerful, when they should be trying to fit in with ordinary working Canadians who go to work every day and pay their taxes, and who want to be part of a country that assesses a fair rate on everyone and does not say, “Because you make a lot of money, you are off the hook.”

What is the message being sent to Canadians here? The message is that if they get caught not paying quite enough tax but make a regular income, the Liberals will come after them. The problem is they did not cheat enough. If they had just cheated more, then they would be in the category of people the Liberals do not really want to go after.

The message being sent to Canadians is not to cheat a little bit, but to cheat a lot. They can only do that if they make enough money to cheat that much, and if they do, the Liberals will want to be their friends. Otherwise they are just ordinary Canadians, and the Liberals cannot give them the time of day after getting elected.

[Raj Grewal, Liberal, Brampton East, ON]

Madam Speaker, I thank my colleague for his passionate speech, but I have a simple question for him.

We were elected on a platform to help the middle class, and we committed to raising taxes on the wealthiest 1%. New Democrats, time and time again, speak about helping Canadians. I ask the hon. member one simple question. Why would New Democrats vote against raising taxes on the wealthiest 1% and reducing taxes for nine million Canadians who had a tax cut because of our government? That was the first piece of legislation we passed. Why do you not answer that question? Why do you not vote in favour of raising taxes on the richest Canadians and cutting taxes for the middle class?

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I ask the member for Brampton East to address questions to the Chair and not use the word “you”.

The hon. member for Elmwood—Transcona.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, I will take the opportunity to remind the member that we had proposed an amendment that would have actually changed the tax increase, not to apply to the second bracket—and that is the reason why we get people in Canada who are making six figures and see the biggest benefit from that tax cut—but to have a tax cut in keeping with the spirit of the Liberal promise that would have happened at the first income bracket and would have benefited all working Canadians, not just the middle class, which they cannot quite define but seems to be a six-figure middle class, but everyone who is working hard in Canada. The Liberals voted against that, and I do not understand why. It was a disappointment that they were not actually willing to give a tax break to every working Canadian, so we felt we could not support their proposals.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, the member said he wants to speak truth to power. I would suggest to the member that we need to speak truth to New Democrats, because quite often what they say is questionable in its accuracy.

For example, New Democrats will say that the Liberal government is listening to the rich from Bay Street, when the reality is that the Minister of Finance and his parliamentary secretary travelled to every region of the country consulting with Canadians. What did Canadians have to say? They want to have a tax break, and that is what the government delivered.

We also provided an increase to the Canada child benefit program. We also provided a 10% increase to the most vulnerable of Canada's seniors through the GIS program. As my colleague pointed out, we also provided an increase in taxes to Canada's wealthiest. What do New Democrats have in common on all of those fronts? They voted against each and every one of then,

The Minister of Finance, this government, travelled the country, consulted in every region of the country, we brought forward a budget that reflects what Canadians want, not what Bay Street wants, and what do the NDP do? It votes against it. That is the truth of the NDP.