Mr. Speaker, I will be splitting my time today with my hon. colleague from the riding of West Vancouver—Sunshine Coast—Sea to Sky Country.
It gives me great pleasure to speak to Bill C-74, the budget implementation act, 2018, No.1, which is intended to strengthen the middle class and make sure all Canadians have the skills and opportunities they need to succeed.
Budget 2018, appropriately entitled “Equality + Growth: A Strong Middle Class”, is a statement that continues to build upon the solid foundation laid out in our government's prior two budgets.
Our economy is strong and the future for our country and for all Canadians is bright. Our progress as a government over the last two and a half years is something of which we can all be proud.
Hard-working Canadians, including those in my riding of Vaughan—Woodbridge, are taking risks, investing in their communities and their businesses. Due to their efforts over 500,000 net new jobs have been created, an overwhelming majority of which are full time.
Our unemployment rate is below 6%, the lowest in 40 years, and thanks to the middle-class tax cut, nine million Canadians are paying less tax. Over a period of five years, that will add up to more than $20 billion in tax relief for Canadian families.
Our government has ambitiously completed historical and progressive trade deals, including CETA, which will create thousands of good middle-class jobs for Canadians, will strengthen economic relations, and will allow Canadian companies unlimited access to over 500 million consumers.
Putting the interests of the middle class at the centre of our trade discussions ensures that Canadian businesses and the Canadian economy will reap tangible benefits.
We have also put in place an infrastructure plan that invests billions in public transit so commuters in my riding of Vaughan—Woodbridge can get home sooner to their families. This we can see is real tangible progress for all Canadians.
Our vision strengthens Canada's social fabric and balances the desire for a strong economy, while introducing long-term measures for a healthy environment. This includes pan-Canadian pricing for carbon pollution, an important measure in Bill C-74. Each province will determine how to spend the money generated from carbon pricing. This is the right approach.
I do wish to stress that all the measures in Budget 2018 and laid out in Bill C-74, in my view, only further strengthen our fiscal position.
As an economist and someone with over two decades of experience in the private sector, I have seen and experienced the ups and downs of the global economy, including the 2008 global financial crisis and before that the technology bubble. I know how important it is to maintain a strong fiscal framework.
I am proud to say that our plan includes a gradual reduction in the federal debt-to-GDP ratio. According to the International Monetary Fund, Canada has the lowest net debt-to-GDP ratio in all G7 countries.
We have looked at Bill C-74 on a larger scale, so why not look at how the measures we have laid out in this bill would directly affect Canadians in their day-to-day life.
Let us examine the Canada child benefit.
In my riding of Vaughan—Woodbridge, the CCB is assisting thousands of families. The numbers speak for themselves. In one year alone, CCB payments benefited 19,400 children in my wonderful riding, with approximately 10,400 payments and an average tax-free payment of $5,400. This is approximately $59 million that is delivered tax free to families in Vaughan—Woodbridge and to 337 other ridings in Canada. This is money which will assist families with paying for their kids' sports, clothes, or can help save for their children's future.
Bill C-74 indexes the Canada child benefit beginning in July 2018, that is, two years earlier than originally planned, to help families deal with the high cost of raising children.
It is estimated that this measure will provide an additional $2.1 billion to families in Ontario alone until 2022-23. That is the kind of leadership Canadians expect from our government.
At this time, the CCB is helping lift millions of families and hundreds of thousands of children out of poverty across the country.
These measures are not only putting more money in the pockets of numerous Canadians families, but they will also positively affect business owners across the country.
In my riding of Vaughan—Woodbridge, the city of Vaughan is home to over 11,000 small and medium-size businesses, employing more than 208,000 people. I am proud to say the city of Vaughan is the largest employment area in the whole York Region.
My riding is home to many businesses, from the large, multinational companies like FedEx and Home Depot, to many family-run firms, including Vision Enterprises, Quality Cheese Inc., Decor-Rest Furniture Manufacturers, to family-run bakeries, which I frequent all too often. When I am home, my family and I enjoy visiting our favourites like Sweet Boutique, La Strada Bakery, and St. Phillips Bakery to just name a few.
With Bill C-74, we will strengthen our businesses by lowering the small business tax rate to 10% effective January 1, 2018, and to 9% effective January 1, 2019.
Once fully implemented, those hard-working small business owners will see a tax reduction of up to $7,500 annually. This measure is a cumulative tax reduction of nearly $3 billion over the next five years in the pockets of hard-working Canadians across the country.
Our government initiated extensive consultations to make sure that entrepreneurs can continue to invest in and grow their business, but also to ensure that all Canadians are paying their fair share of taxes and that the economy is working for everyone.
I know this is crucially important for the many successful private business owners in my riding of Vaughan—Woodbridge who are involved in various industries, from advanced manufacturing, high tech, construction, and the food and beverage sector. I have met with many of these hard-working large, medium, and small business owners, some employing 10 workers and others employing thousands. I am incredibly proud of their hard work and to be their voice in Ottawa.
Our government will ensure that business owners can continue to invest in their businesses and also increase flexibility for owners to build a cushion of savings for personal circumstances, such as maternity leave or retirement.
However, we will restrict tax deferments for passive investments in private corporations. Once a private corporation has amassed significant passive investments, it will no longer be subject to the small business tax rate. This measure will affect less than 3%, or about 50,000, of Canadian-controlled private corporations.
As I noted in my introduction, our government is committed to helping all Canadians succeed, and we are putting money in the pockets of those who need it most.
In budget 2018, our government makes a significant investment in boosting the earnings of low-income workers with a near $1 billion investment in the Canada workers benefit. The investment will lift 70,000 Canadians out of poverty and, as important, encourage more people to join the workforce.
With the legislative changes that will automatically enrol Canadians, an estimated 300,000 additional low-income workers will receive the new CWB for the 2019 tax year. For example, an individual in my riding who is earning $20,000 annually, which is not a large sum for a lot of people, and some people make that stretch a long way, will receive an additional $500 from this measure, where previously no boost was received.
As the son of parents who immigrated to Canada with nothing but the desire to work and create a better future for their family, I know that the Canada workers benefit will improve the living conditions of thousands of Canadian workers.
I have touched merely upon a few things that Bill C-74 introduces. The indexation of the Canada child benefit, the Canada workers benefit, and support for small businesses are all measures that will benefit millions of Canadian workers and Canadian businesses from coast to coast to coast.
These measures will lift tens of thousands out of poverty, help families in raising their kids, encourage more folks to enter the labour force, and allow business owners to invest more money to grow their businesses. These are real, tangible, positive outcomes that will better the lives of Canadian families, business owners, and our economy. I am proud of budget 2018 and what is in Bill C-74.