House of Commons Hansard #202 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was community.
Lisa Raitt Conservative Milton, ON
Mr. Speaker, in one ear and out the other; that is the kind of listening they are having. CFIB released figures showing that two-thirds of Canadians, small and local businesses, make less than $73,000 a year.
This just in: interestingly enough, yesterday, Morneau Shepell declared a cash dividend to shareholders. Why is the finance minister forcing small businesses to pay a 73% tax, when even the millionaire owners and shareholders of Morneau Shepell will not have that on their dividends?
Bill Morneau Liberal Toronto Centre, ON
Mr. Speaker, we want to make sure that our system is fair. We want to make sure that it does not encourage wealthy Canadians to incorporate so they have a lower tax rate than middle-class Canadians. We also want to make sure that we do not have a situation where some people that are, frankly, very well compensated, pay a lower tax rate than others.
The members opposite may be comfortable with that, because that is the system they were in before our government came into power, but we know that a fair system requires all Canadians to find themselves in a situation where they can actually have opportunities that should be available to all Canadians.
Tracey Ramsey NDP Essex, ON
Mr. Speaker, Canada is the most sued country in the world under investor-state dispute settlement provisions in NAFTA's chapter 11, allowing companies to sue governments over anything they believe has reduced their profits. The threat of chapter 11 challenges has had a chilling effect on government action and has eroded our democracy. Numerous stakeholders insist that chapter 11 should be removed, and today, an Ekos poll reported that 63% of Canadians agree. Our trade deals cannot put profits before people. Will the minister finally listen to Canadians and eliminate chapter 11?
Andrew Leslie LiberalParliamentary Secretary to the Minister of Foreign Affairs (Canada-U.S. Relations)
Mr. Speaker, Canada welcomes the modernization of NAFTA in support of our middle class and those working hard to join it. Our objectives for a modernized NAFTA include reforming the investor-state—
The Speaker Liberal Geoff Regan
Members seem to be enjoying question period today. Let us have a little order.
The hon. parliamentary secretary has the floor.
Andrew Leslie Liberal Orléans, ON
Thank you, Mr. Speaker. Our objectives for a modernized NAFTA include reforming the investor-state dispute settlements, chapter 11, and we want to make sure that the government has the unassailable right to regulate in the public interest. We will always stand up for our national economic interests and for Canadian values. Chapter 11 is very much under discussion.
Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC
Mr. Speaker, the dairy farm investment program is a total failure. No surprises there.
Many dairy farmers have hit a wall and will not be able to get the compensation they are owed because the program is underfunded. It is ridiculous. In less than a week, the program already handed out $125 million of the $250 million, while the losses are estimated to be at least $750 million. CETA comes into effect tomorrow and dairy farmers must and want to invest right now.
Will the Minister of Agriculture allocate more money to the dairy farm investment program or not?
Lawrence MacAulay LiberalMinister of Agriculture and Agri-Food
Mr. Speaker, I can assure my hon. colleague that this government has supported, and will continue to support, the supply management system. It was quite clear when we invested $350 million in the dairy side of the supply management sector, making sure that $250 million went to innovation on the farms themselves and $100 million went to the processing sector. We have continued and will continue, and other dollars are available. The supply management system is safe and well in this country.
Candice Bergen Conservative Portage—Lisgar, MB
Mr. Speaker, Wildwood Transport is a trucking company in my riding that employs 55 Manitobans. Ryan, who is the owner of Wildwood Transport, has told me that the finance minister's tax increases are going to have a drastic effect on him and his employees. What Ryan does not understand is this: why is the finance minister forcing him to pay a 73% tax that not even the millionaire owners of the minister's own family-owned company, Morneau Shepell, have to pay?
Bill Morneau LiberalMinister of Finance
Mr. Speaker, we are working toward ensuring that our tax system is fair. We want to make sure that there is not an encouragement for wealthy Canadians to incorporate so they pay a lower rate of tax than middle-class Canadians. We know that Canadians see that as fair. We are going to work toward ensuring, as well, that entrepreneurs like Ryan are assured that they can continue to actively invest in their businesses to create jobs and to help keep our economy, which is growing very well, healthy over the long term. They need a fairer tax system, and they need encouragement to invest. That is what we are working on achieving.
Candice Bergen Conservative Portage—Lisgar, MB
Mr. Speaker, the finance minister has his head in the sand, because jobs that are created by Ryan and this company are going to be driven into the ground under the tax increases by this minister. We ask again, how is it fair that someone like Ryan and a company like this are going to have to pay 73%, when millionaire owners of companies like Morneau Shepell will not have to? How is that fair?
Bill Morneau LiberalMinister of Finance
Mr. Speaker, we know that having a system that is fair is critically important. We know that a system that favours the wealthy over the middle class just does not work. We know that members opposite were happy to have a system where the wealthiest might have had a lower tax rate than the middle class. We are not comfortable with that. We want to move forward with measures that will encourage investment but make sure that our tax system is fair. We want to ensure that wealthy Canadians do not have an encouragement to have a lower tax rate than the middle class, and we will follow through with that goal.
Mark Strahl Conservative Chilliwack—Hope, BC
Mr. Speaker, the finance minister is proposing to tax the investment income of small business owners at a rate of 73%. That means that Boyd Yamamoto, the owner of Sardis Health Foods, in Chilliwack, will now be punished after years of hard work for setting aside money for his retirement. Why is the finance minister forcing Boyd to pay a 73% tax that not even the millionaire owners of Morneau Shepell will have to pay? How is that fair?
Bill Morneau LiberalMinister of Finance
Mr. Speaker, having a system that encourages the wealthiest among us to incorporate—
The Speaker Liberal Geoff Regan
Order, please. I am sure most members would agree that they would defend the right of others to speak, even though they disagree. Therefore, I would ask them to respect that right as a fundamental principle of democracy.
The hon. Minister of Finance has the floor.
Bill Morneau Liberal Toronto Centre, ON
Mr. Speaker, we know Canadians expect us to put in place a system that is fair. We know they have seen a system that, over the years, has encouraged the wealthiest to incorporate and get a lower tax rate than the middle class. That is not something we want to have as a continuing situation in our tax system.
Bill Morneau Liberal Toronto Centre, ON
We know we have to have two objectives met. We want to have a system that encourages people to invest in their active businesses. We also want to have a system that is fair for this generation and future generations. That is what we are working toward.
The Speaker Liberal Geoff Regan
It appears the hon. member for Brantford—Brant did not hear me. I would ask him to not be blurting things out when someone else has the floor and he does not. He knows that is not permitted in the rules.
The hon. member for Chilliwack—Hope.
Mark Strahl Conservative Chilliwack—Hope, BC
Mr. Speaker, Kelly Langille owns a heating and air conditioning business in Chilliwack. He works hard, creates good jobs within my community, and hopes to share his success with his children and save for his own retirement. The Minister of Finance's tax changes will harm his business and his family.
Kelly says, “I will now have to re-evaluate my ability to save not only for my retirement, but to keep my business running”. Why is the Minister of Finance forcing Kelly to pay a 73% tax that not even millionaire owners of companies like Morneau Shepell have to pay, and how is that fair?
