House of Commons Hansard #377 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was families.

Topics

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

3:55 p.m.

Parliamentary Secretary to the Minister of Environment and Climate Change, Lib.

Sean Fraser

Madam Speaker, I know the hon. member is committed to the cause of doing something meaningful on climate change, and I have had a few conversations with him on that topic.

Before I address the real crux of his question, when it comes to big emitters, there is a point that needs to be made. There has been a lot of talk in the House that they are somehow exempt from our plan. That is simply false. Big emitters pay the same price on pollution. They are subject to the exact same price signal that everyone else is. I wanted to put that on the record.

When it comes to the portion of his question that dealt with the energy sector, it is important to recognize that we cannot just flip switches and change our economy overnight. We know there is a global transition towards increased renewable fuels over time and that we need to support those in sectors that will be affected, like the energy sector. It is and has been a good job-creating industry in our country for a significant period of time. However, we also have to make investments to catch the front end of the next economic wave in the green economy that allow us to get those kinds of renewable jobs, allow homes to become more efficient and communities to become more effective as well.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

3:55 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Madam Speaker, it is sometimes frustrating when we talk past each other. In the end result, what are Canadians really looking for? They are looking to see how much more money is in their pockets than there was before. In this Conservative motion, we are talking about statistics that come from a Fraser Institute study from September 2017. In footnote 1, this study says very clearly that what is not covered by this report are government transfers, including the new Canada child benefit program. The government's argument is that the Canada child benefit has, through a different measure, placed more money in the average family's pocket than these taxes have taken away.

Therefore, in the end result, the real question is, which plan puts more money in the average person's pocket? The semantics being used is that their taxes are going up, but the report saying that does not cover the main reason the government is saying that more money is in people's pockets. We are all talking past each other. I would ask the hon. parliamentary secretary if he agrees with that analysis.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

3:55 p.m.

Parliamentary Secretary to the Minister of Environment and Climate Change, Lib.

Sean Fraser

Madam Speaker, I not only agree with the analysis but I would suggest that it is indisputable. It is in the report he mentioned. For the record, the Fraser Institute has no connection to me being a Fraser as well. I would like to distance myself from it as far as humanly possible.

The reality is that if members were to knock on doors in my riding, the median income is a little over $20,000 a year for an individual. When I knock on doors, sometimes kids answer who have not had enough to eat. I have the power company on speed-dial because so many people call me about not being able to pay their power bills at the end of the month. Through measures like the Canada child benefit, the average family that qualifies in my riding will be $6,800 further ahead, tax free. This is a meaningful change for families. It is going to allow kids to eat more healthy food, to go to school with new outfits and allow more kids to take part in sports and other activities. It is good policy.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Madam Speaker, the member is very well intentioned when it comes to wanting to help the planet, but he is misleading Canadians when he talks about the carbon tax. Taking money out of Canadians' pockets and putting it back at the end of the year is going to do nothing for the planet. Even if Canada totally eliminated its footprint, it is less than 2% of the global problem, so it would have an insignificant effect.

We know that the carbon tax does not work. Australia had one, but it got rid of it because it drove the cost of everything up. B.C. has one, and its emissions have gone up. Quebec has cap and trade, and its emissions have gone up. These mechanisms do not work and they take money out of the pockets of Canadians.

Could the member comment on that?

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4 p.m.

Parliamentary Secretary to the Minister of Environment and Climate Change, Lib.

Sean Fraser

Madam Speaker, I would like to thank the hon. member for the level of discourse that she brings to the House. She was always a pleasure to chat with when we previously worked together on committee.

However, when it comes to the effectiveness of these measures, every climate economist who has looked at this has suggested that this is the most effective tool we have. If people try to build houses and they do not use a hammer and nails, they are going to be a lot less effective in doing it. We have to use the best tool that we have in the tool box, and we will be better off with this plan than without it.

There is one argument that the hon. member made that I cannot buy into, and that was that Canada is too small to make a difference. It is frustrating when I hear this. We never had that argument debated when we were talking about Vimy Ridge, when we were talking about Canada's contribution to the Second World War. The fact is, Canada has always been a small country that has punched above its weight.

We are in the fight of our time right now, and if we cannot demonstrate a leadership role, then who is going to do so?

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Madam Speaker, when the parliamentary secretary talks about a tax on pollution, does he agree at all with any of the statistics that are coming from the other side?

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4 p.m.

Parliamentary Secretary to the Minister of Environment and Climate Change, Lib.

Sean Fraser

The short answer, Madam Speaker, is no. The somewhat longer but still short answer is that every leading climate economist who has looked at this issue has disagreed with that point of view. We have talked to people who have won Nobel Prizes, who have chaired the Federal Reserve in the United States, and political leaders from both sides of the aisle in Canada. Consistently, the answer is that emissions will come down and families will be better off if we put a price on pollution and return the revenues directly to Canadian families.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, first off, I should tell you that I will be sharing my time with my colleague, the member for Kamloops—Thompson—Cariboo, because we have much to say about this issue.

I want to pick up on my colleague's last few words. If the Liberals' carbon tax plan was really intended to return this money directly to Canadian families, why did they not propose such a plan in the first place? Instead, they asked the provinces to impose a carbon tax, and any holdouts had this solution forced on them. What a load of claptrap. Whenever we bring up the carbon tax with the members of this government, their story changes by the hour, and unfortunately, nothing is being done to help our planet.

We are here to discuss a real issue for Canadian families and indeed for all Canadians, namely the consequences of the Prime Minister's mistakes. He is making Canadians across the country pay for his failures and for his inability to balance the budget. That means taxes will go up again, which will leave us more vulnerable to a possible economic downturn. Again, that is not something that is happening today, but it is something we can expect to happen, and Canadians will be the ones paying the price.

In 2015, the Prime Minister promised to balance the budget in 2019. Today, I just heard a speech about honesty in politics, openness and how to get people to pay more attention to politics. How can we trust a party whose leader promised over and over that if Canadians voted for him, he would post small deficits, then an even smaller deficit, and ultimately return to a balanced budget in 2019? That claim appears in his platform and was repeated many times. It was not just anyone saying it, it was the party leader, the person leading the government today.

What happened when that party took office? Once it got what it wanted, it no longer felt obligated to keep its promises and commitments and to run only small deficits, so we now have enormous deficits. According to the Parliamentary Budget Officer and the Department of Finance, with this government, it will take years to balance the budget. With a party that does that sort of thing, where is the honesty, justice and transparency for Canadians?

Every year that the Prime Minister runs deficits, he is borrowing money from future generations, my children and grandchildren and those of all Canadians. One day, someone will have to pay back that money. Unfortunately, it is our future generations that will have to pay for this Prime Minister's mistakes, mistakes he will continue to repeat as long as he is the head of government. It is time to put an end to this government before the damage becomes irreversible.

That is why our motion today calls on the government to do one simple little thing. It would take the Prime Minister's Office two minutes to agree to the request in the motion we moved today. We just want the Prime Minister to confirm in writing that he will not raise Canadians' taxes any more. When the Prime Minister is in the House for question period, he can often be seen signing all kinds of documents. If he wanted to, he could take two minutes tomorrow to write up a little note saying that he promises not to raise Canadians' taxes any more.

However, judging from the speeches today and everything the Prime Minister and government members have said, they clearly have no intention of making any such promise. Why? Because they have no intention of keeping it.

Our motion summarizes the facts. I would like to take a closer look at it because I think that will be helpful to Canadians who will soon have an opportunity to put an end to the mandate of a Prime Minister who is more concerned about image than about Canadians' well-being. The only thing he is really interested in is Canadians' money, and that is because he needs to cover his massive deficits.

The motion begins as follows:

That, given:

(a) 81% of middle-income Canadians are seeing higher taxes since the government came to power;

The fact is that the people of my riding, Mégantic—L'Érable, simply do not believe that the Liberal government has improved their lives in any way, shape or form since 2015.

The motion goes on:

(b) the average income tax increase for middle income families is $840;

Despite the government's rhetoric, it is always careful not to mention all the schemes it is using to try to take more and more money out of the pockets of middle-class Canadians, the very ones it claims to want to help.

Of course, the Prime Minister does not need to worry about a tax hike of $840. However, for many Canadians who are just $200 away from not being able to pay their bills every month, that is a lot of money.

Returning to the text of the motion, it continues:

(c) the government's higher Canada Pension Plan premiums could eventually cost up to $2,200 per household;

This is another Liberal government scheme. The Liberals take Canadians for granted, and they know full well the money will eventually run out because they keep posting deficit after deficit.

Every measure the government takes ends up with the need to come up with even more money. Where is the Liberal government going to get the money to pay for its out-of-control spending? Obviously, that money is going to come out of the pockets of Canadians in the middle class and those working hard to join it, as the government likes to say. They are the ones who have to pay for the Prime Minister's mistakes.

The government is looking for money, but the benefits will not materialize until much later. By some magical thinking that I cannot even describe, the Liberal government thinks that the money will somehow end up in taxpayers' pockets. However, anyone who pays for a phone bill, power, bill, heating, groceries or a child's education knows full well that the family budget does not balance itself.

According to the Fraser Institute, more than 90% of Canadian families will pay more in taxes once the Liberals' increases in Canada pension plan contributions are fully implemented by 2025.

It goes on:

(d) the government cancelled the Family Tax Cut of up to $2,000 per household;

The government, however, claims to want to help families.

Next:

(e) the government cancelled the Arts and Fitness tax credit of up to $225 per child;

Thousands of Canadian families got a nasty surprise when the Liberals announced they were eliminating this tax credit, even though this was not mentioned in their election platform. This decision had an impact on hundreds and even thousands of young people. I know that many young families decided not to register their children in certain courses. Some children were deprived of their physical and cultural activities just because their parents could not afford it.

At one time, I was the head of a gymnastics club. I know just how hard the parents who volunteer at these clubs work to bring down costs as much as possible so that children can practice their sport. The more competitive an activity, the greater the cost. As the head of a club, I can tell you that many talented young people were no longer able to compete in their favourite sport because their family could not afford it.

Children are the big losers when a fitness and arts tax credit is eliminated, along with the parents who volunteer and the clubs themselves, which work hard to succeed.

The motion states the following:

(f) the government cancelled the education and textbook tax credits of up to $560 per student;

(g) the government's higher employment insurance premiums are up to $85 per worker;

(h) the...carbon tax...;

(i) the government's intrusive tax measures for small business will raise taxes on thousands of family businesses all across Canada;

This is a shameless attempt to dip into farmers' pockets.

I could go on for another 20 minutes, and unfortunately I had a lot more to say, but my time is quickly running out.

I want to conclude by saying that we are right in demanding that the Prime Minister to provide written confirmation that he will not further raise any taxes on Canadians.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:10 p.m.

Liberal

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

Madam Speaker, I always listen to my colleague from Mégantic—L'Érable with great interest.

Earlier today, the member for Sherbrooke pointed out that today's motion was remarkably similar to last week's motion. He also said that we would probably make the same or similar comments.

I would like to hear what my colleague from Mégantic—L'Érable has to say about one of our government's key measures. He talked about family earlier. I want to talk about families in his riding. In Mégantic—L'Érable, 7,780 families receive tax-free Canada child benefits, which help 15,000 children. These families receive, on average, $7,560 tax free. This means that the money goes into their pockets. It is not a tax credit. Someone has to be paying taxes to receive a tax credit.

How will my colleague tell his constituents that he opposes this measure?

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:10 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, we are not against it. On the contrary, ours is the party that brought in the Canada child benefit, and we did it while balancing the budget. Our party will keep the program in place, so that is fine. However, I would like to know why the Liberal Party is determined to make families, the very families it claims to be helping, foot the bill. The Liberals are borrowing billions of dollars on the backs of the young people they claim to be helping now. That is the real issue here.

The Liberals were elected on a false promise. The Prime Minister did not tell Canadians the whole truth during the last election campaign. Today the Liberals are distancing themselves from those promises and pompously throwing around all kinds of numbers even though they know perfectly well that borrowed money must be repaid. They are not the ones who will have to repay it; our children and grandchildren are.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:10 p.m.

Bloc

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

Madam Speaker, the Conservatives' motion is interesting. They say they are against any and all tax increases, and they offer up a number of measures and examples they feel are important. Some of those measures are in fact interesting. However, what we have a problem with is the idea of being against all tax increases. Some very high income earners evade taxes. Some rich taxpayers are taking advantage. For example, some web giants and foreign companies pay no taxes.

Does my colleague opposite think it is okay for those companies and individuals not to pay tax?

Should we be congratulating the Conservatives for wanting to help the very rich with this motion? Ultimately, they would not really be helping the very poor.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:15 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, tax evasion is immoral, it is unacceptable, it is illegal and we must fight it every day. What the member just said is completely unrelated.

We are opposed to tax increases. We are not fighting so that people can reduce their taxes to the detriment of the system. That has absolutely nothing to do with our motion. I think my colleague should instead support our message, so as to ensure that Quebeckers pay less in sales tax and income tax and that their taxes do not increase over the next few years, because this government is irresponsible and is spending too much money.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:15 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Madam Speaker, I thank my colleague for his speech.

The Liberals have continually increased taxes since 2015. I think they are wasting Canadian taxpayers' money. They have not really done anything with that money.

What are my colleague's thoughts on that?

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:15 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, I think it would be hard to say what exactly the government did with all this money. Never has a government spent so much to do so little. There was talk of infrastructure. I remember during the last election campaign that the Liberals promised to bring in an infrastructure program. They promised to run two deficits of $10 billion followed by one deficit of just under $10 billion before balancing the budget and then running a surplus. The infrastructure projects were supposed to provide jobs for Canadians.

In my riding, and in most of my colleagues' ridings, we are still waiting for infrastructure money. That money has not really materialized. The money went into a system or who knows where. What we do know is that the government kept borrowing and not a single shovel or backhoe has hit the ground. That is the real problem. We do not know what the Liberals have been spending all this money on for the past three years.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:15 p.m.

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, I am pleased to rise to speak to the very comprehensive motion before us, which is focused on taxes. A lot of it is focused on not raising taxes in the short term. However, most importantly, we also do not want to see this continuing growth of our deficit and debt in the long term. Therefore, it is about both the taxes of today and the taxes of tomorrow.

As we know, and as any family knows, a certain amount of income comes in, and there is only a certain amount of debt it can service. The current government seems to have an outrageous problem with spending.

If we go back to the campaign of 2015, the Liberals promised a balanced budget. They would run small deficits for the short term and then get back to a balanced budget. They predicted a recession and that things would be difficult. The former Conservative government left them with not only a balanced budget but things in place to create success in the economy. I would argue that the success of the economy, at least in the first couple of years, had nothing to do with the Liberals' policies but was a result of the appropriate moves the former government made, which left them in a good position.

Not only have the Liberals had deficits, they have had good times. Their argument was that they might have to spend a little money to stimulate the economy. Well, if we have to stimulate the economy in bad times and stimulate the economy in good times, and increase debt as we do it, we will run into a whole bunch of problems, and that is exactly what the government has done.

Quite frankly, I know a lot of people who call themselves Liberals. They were certainly Chrétien-Martin Liberals. They remember the 1990s. They remember the challenges of the massive problem we got ourselves into in terms of debt that was increasing and the very difficult job of getting ourselves back into a reasonable fiscal position. I will give the former Martin-Chrétien group credit for recognizing that there was a serious issue and for making some of those hard choices. Of course, they paid down some of the debt. The Conservative government, in good times, before the global recession, also paid down significant debt.

What we have is a Liberal government that made a specific promise, and quite clearly it has broken it. A recent report by the Macdonald–Laurier Institute says that the Liberals are leaving what will be a really unfair tax burden on our children and grandchildren. When they talk with pride about spending money here and spending money there, what they really mean is that they are leaving debt for our children and grandchildren. Perhaps they should look more closely at that. This report is not from a right-wing think tank. It is a very reasoned report in terms of the current situation. It is saying how unfair it will be to our children and grandchildren if they continue in this way. Quite frankly, we cannot afford another four years of this total disregard for taxpayers' dollars and how they spend it.

What we are talking about is a lot of taxes. The Liberals have a desire to spend money and have a very tough time saying no to anything. They are trying to find ways they can pay for this spending and maybe not have that debt look quite as significant and severe.

Let us talk about some of the things they have tried to do in terms of sneaking in extra taxes to pay for their out-of-control spending. We all remember the changes the Liberals were going to make for small businesses and the uproar from small businesses across the country. The Liberals backed away partially from that move.

We all remember what happened all of a sudden for someone who worked in a McDonald's and maybe got a complimentary Big Mac meal. These people make minimum wage, but they might get a meal. All of a sudden, government wanted to tax that as a taxable benefit. The Liberals quickly heard that that was not going to work. They could not get tax money there, so they backed off from that.

Then the Liberals were going to try to tax health and dental benefits. Again, they quickly heard an uproar and moved back from that idea.

Then, of course, who could forget when the CRA decided to go after diabetics, who have huge challenges in terms of the management of their disease and the number of hours that they have to spend managing their disease? All of a sudden, the Liberals decided that managing a chronic disease such as diabetes was not really that bad and that diabetics really did not deserve to have the disability tax credit.

What we see are broken promises, out-of-control spending, the inability to not say say yes to everything, and now the Liberals are looking for ways to actually pay for what they are spending.

So far the Liberals have backed off from these unpopular decisions, but as I have indicated, if they are in power for another four years, we could see not only those issues coming back to the table but many more that might be up their sleeves.

Let us go a little more into taxes and what is truly happening in the real world for small business operators. I am going to use an example.

I met with a number of people who sell small boats, little fishing boats, and they are scattered across British Columbia, where we have beautiful lakes.

In the summer these businesses were saying that the aluminum tariffs were really going to be a challenge for them, because they had to order right then for their product to arrive for the 2019 season. They were asking if the tariffs were going to be removed and whether they should wait a few weeks or months to do their orders, because it would have a very significant impact on their business if every boat they brought in from an American manufacturer was subject to a significant tariff.

I could not answer that question at the time, and it is a good thing I did not answer it, because had they decided not to order their product, they would still be looking at the same issue many months later. They would not have any product coming in. What many of them had to do was just go ahead, do the order and pay the tariffs, which would be passed along to the consumers.

Not only that, but at the same time, these business owners in British Columbia were being hit with an employee health tax that the provincial government decided to impose. The Canada pension plan premiums are going up. All of a sudden small businesses are facing increases in payroll taxes, employment insurance, Canada pension plan, the new employee health tax and a 15% premium on the products they are bringing on.

What has happened for people like these small boat manufacturers is that they have had to lay off staff, and in some cases their businesses are no longer viable. It has been incredibly crippling. It is just raising the cost of everything, even if they have consumers who can actually afford what could be a 20% or 25% increase in terms of the product.

I have to use British Columbia as an example in briefly mentioning the carbon tax. The Liberals love to talk about how the carbon tax in British Columbia has worked so well and has been there for 10 years and is just great. What they never tell anyone is that with a stroke of a pen, what was a revenue-neutral carbon tax in British Columbia became a tax grab by the NDP government. It was done with the stroke of a pen.

The Liberals can say all they want about how they are going to give a cheque to those four provinces that do not have their own plan and how they are going to take as much out of the right as they are going to put in with their left, which no one believes, because they could never put as much in when they take that much out. No one believes it is going to be the same amount of money. More importantly, as everyone knows, it is not going to take very much—just one slash of a pen—for that to go from revenue neutral to a tax grab to pay for the Liberals' out-of-control spending.

I think we can see small businesses right there.

This is an important motion, and there are very good reasons that we have put it forward.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:25 p.m.

Liberal

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

Madam Speaker, I have a great deal of respect for my colleague from Kamloops—Thompson—Cariboo. However, I have to say that I do not really agree with what she said. She gave the previous government credit for our current economic growth.

We, the Liberals, created 800,000 jobs. We have the lowest unemployment rate in 40 years. The Canada child benefit is helping families in my riding and I assume that that is the case in hers as well. Our economic growth is among the highest in the G7.

I would like to know what my colleague will say to the families in her riding, Kamloops—Thompson—Cariboo. Every month, 10,380 tax-free payments are made to these families. We are talking about 18,000 children. People receive an average tax-free payment of $6,960 a year.

I would like to know what my colleague will say to those who ask her why she voted against it.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:25 p.m.

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, I will answer the second part of the question and then I will go to the first.

Absolutely, the Liberals took a plan that we had, tweaked it and made a few changes to it. I think families find it welcome to receive that money. Again, that was actually started under the former Conservative government, and they tweaked it and changed it.

We absolutely will take credit for getting through the global recession and having a plan. I remember when the late Minister Flaherty set out a plan that was going to stimulate the economy by this much and bring us back to a balanced budget in every year. I watched him follow that plan and follow through with his promises. We left the government in a very good position, with good policies and with a good way to go forward.

Absolutely, the Liberals can enjoy the fact that we created the good economic opportunities that they have had.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:30 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Madam Speaker, I always appreciate my colleague's speeches.

One of the things that concerns me always is the use of selective facts. In this case, I refer back to the motion with reference to numbers from one study from the Fraser Institute in which the first footnote of the study says that it did not consider the Canada child benefit.

I would like to ask my colleague this. How can she justify the numbers used in the motion to pretend that Canadian families are not doing as well as they were before, when the one study that says this also says that it is not using the numbers about the Canada child benefit, and that number is the one that shows why we believe families are doing better? I do not understand.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:30 p.m.

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, I think I gave some really good examples. When businesses like those boat owners have to lay off people, we have some serious issues out there due to the policies of the government and the tax system it has in place. The unresponsiveness to small business is creating huge challenges in the country.

I do also want to make note of the Macdonald-Laurier Institute with regard to the debt that the government is adding, the debt that it does not care about, the debt that the Liberals promised in 2015 would be gone by now. When the Liberals say they are leaving that for their children and their grandchildren, I do not know how they can stand there and justify their economic plan.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:30 p.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Madam Speaker, I would like to use a statistic that is not in the motion, but it is one that I think is very relevant.

StatsCan data about income taxes collected in the year 2016, which is the last year for which data is available, shows that the bottom 50% of Canadians are paying more tax as a percentage of their income than they were in any year before, going back 10 years. Actually, the top 1% of Canadians are paying less tax than they have in the past 10 years.

I would like to hear the member comment on this, because it is a pure reflection of the policies of the Liberal government.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:30 p.m.

Conservative

Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC

Madam Speaker, we all recall that in 2015 there was going to be a middle-class tax cut and that the upper-income Canadians were going to pay for it. Clearly, that did not happen. That is another piece of mismanagement that has added to the debt of the government, debt that is going to our children and grandchildren.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:30 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Order. It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for London—Fanshawe, Transport; the hon. member for Bellechasse—Les Etchemins—Lévis, Public Services and Procurement.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:30 p.m.

Spadina—Fort York Ontario

Liberal

Adam Vaughan LiberalParliamentary Secretary to the Minister of Families

Madam Speaker, I will be sharing my time with the member for Louis-Hébert.

I am thankful for the opportunity to speak today about our government's significant enhancements to the betterment of Canadians from coast to coast to coast.

It is important when we look at the country we are building to note the difference between the two parties that are sharing this debate with great vigour today. One party simply builds balance sheets, and that is it. We see that they are not even very good balance sheets when we look at that party's historic record. The other party is focused on building the strength of Canadians, their communities, and by extension, the country as a whole.

Our investments over the last three years, since the last election and in our first few budgets, really show where we are making a difference in the lives of Canadians. For example, the Canada child benefit, the improvements to the Canada pension plan, the investments in housing and infrastructure are all about not just building capacity in the lives of ordinary Canadians and Canadians who have real and determined needs, but also about making sure the communities they reside in also get stronger and in turn build a strong economy with new jobs that employ Canadians as we move forward together.

In fact, Canadians have been given the opportunity over the last three years to produce well over 800,000 jobs through investments we have made. That is because the dollars are getting out the door, contrary to some of the criticisms we may hear from the opposite side. They know as well as we do that the government pays the invoices on completed projects. We do not simply mail cheques to municipalities and say “Go build something.” We pay what is expended, as opposed to what is projected. That is one of the ways we apply good fiscal management to the infrastructure dollars.

It also means, however, that it appears that a lot of dollars have not been spent, when in fact those dollars are being spent in communities right across the country, including in my riding, where we have literally billions of dollars being spent in infrastructure being developed in partnership with the previous provincial government and our municipal partners.

We also have financed this by taking steps to make the tax system more equitable. Yes, we can listen to the talking points of the American-funded Fraser Institute and we can do math that has only half the equation, which is a terrible way to do a balance sheet, but the reality is that we have lowered taxes on Canadians and raised them on some who are more affluent as part of building a social contract to deliver greater capacity to the government and also greater fairness to Canadians right across the country. Since 2015, as a result of these very careful investments, we have the lowest unemployment rate in 40 years.

We often hear the Conservatives say the best social policy is a job, and while I do not think a job is a social policy but a function of good economic investment and stewardship, the reality is that when 800,000 more Canadians are working than when they were in charge, that is good news. Only a Conservative could see that as bad, but somehow that is the negativity we encounter from the opposite side.

We have also seen in the past three years that Canada has one of the fastest-growing economies in the G7. Again this is directly due to some of our investments. In fact, the World Bank has looked at the Canada child benefit. We made it tax free so that we do not send money to Canadians and then claw it back. This makes it much more robust and makes sure Canadians get it as a right, as opposed to having to go through a very complicated application process.

We are renewing and enrolling people automatically and using Service Canada to look for those gaps where people are not receiving the proper benefit. In doing so, we have invested substantial dollars into the economy. These are substantial dollars that have supported Canadian families in building good, strong, resilient kids as we move forward.

This has caused enormous economic growth in the country. In fact, because it is delivered in ways that are equal right across the country and in low-income communities, the investment into families has generated economic activities in those communities. When families have more to spend on supporting their families and their children, we see the corner store do better. We see the Canadian Tire down the street do better. We see people starting to invest in the local businesses on the main street. Then those main street businesses have the capacity to hire more people. This is one of the ways we stimulate positive economic growth. We have done that, and it is good policy.

My fear is that the party opposite wants to roll the clock back to Stephen Harper's days, when the only tax credits Canadians could get were boutique tax credits that required them to have the money to spend up front and then perhaps they would get a little back a year later. That kind of policy benefited affluent families, but it left low-income families at the side of the hockey rink, not watching their kids play. It left students who could not afford their books to begin with having to rely on skipping the purchase of all the books required for university and college courses. It was a reactionary approach to economic development. More importantly, it left low-income Canadians outside the conversation about how to better their families.

As I said, the Canada child benefit is one of the reasons why we are most optimistic about our plan and one of the ways that we measure our success, because of the number of kids that have been lifted out of poverty, which is a good thing for everybody but most importantly for those children.

We know that it is expensive to raise children. Healthy food, warm clothing and winter boots are not cheap. We know that when we can deliver those dollars and they are delivered tax free, parents do not have to worry about the taxman coming at the end of the year to claim the money back.

We also know that as we introduced the Canada child benefit the most important thing was that, in modelling that program, we modelled it with the other social programs to make sure that new dollars arriving in the front door of a family that had needs were not being clawed out the back door by other governments. We think this is also important. If we are going to make social investments, they should not displace other levels of government programs from making a difference. They need to be layered into people's lives and make a real difference.

The other thing that is important is the way in which we have done things like rolling back the age of retirement. We know this is going to prevent hundreds of thousands of Canadian seniors from falling into poverty, but then we have also looked at the impact that gender has as people age. We know that men die sooner than most women. We know that men often carry the pension and often carry a lot of wealth because of past inequities in our system. We know that if we do not specifically address single seniors, the predominance of them being women, with special top-ups, we cannot alleviate seniors' poverty either.

The increase to the guaranteed income supplement is one of those investments that targets specific Canadians in specific ways and makes their lives that much better and easier. We are proud of those investments. We will not back away from them as we move forward as a country together.

The other thing I am most proud of is the investment in housing: $5.7 billion has been invested since we took office. We know that the previous government was walking away from housing, literally in places like Alberta, pulling subsidies from seniors' residences or rent geared to income, suggesting that they could pay their own subsidies. Somehow the poor were going to subsidize the poor in some sort of assistance.

We have restored and tripled those subsidies with transfers to the provinces. We have doubled the amount of money being spent on homeless individuals and this investment of $5.7 billion has in broad numbers been invested almost one million times in Canadian households across the country. Close to 15,000 new units are being built and close to 150,000 have been repaired, keeping people in housing that is safe and secure. As well subsidies for close to 700,000, almost 800,000, Canadians have now been delivered on a month-by-month basis, making sure they have the dollars to pay the rent and stay housed.

The cost of not doing things, the cost of only focusing with a very narrow intent on the balance sheet means that we miss the opportunity to support Canadians in very dynamic ways that prevent poverty. We know from every study that has been done that the cost of poverty has a huge impact on educational outcomes and has an impact on Canadians supporting themselves as they grow older.

We also know that as we de-house people or cut housing support, it has a huge impact on the health care system. Housing is one of the most important determinants of health. When we can make these investments, not only do we employ people fixing and building the housing, but we give people a place to call home and that prevents them from falling into harm's way and in particular prevents costs accruing to the health care system, which is one of the most cost-intensive parts of the federal budget.

These programs that we have stepped up with and invested in have created not only the strong economic growth, not only the strong job numbers, but they have also been investments in ways to prevent other costs from accruing to the government. If we were to cut away these supports, it would be penny-wise, but perhaps pound foolish, as the old saying goes. In other words, cutting away these sorts of supports has a negative impact on Canadians from coast to coast to coast.

The Conservatives brag and campaign on a series of pledges that they wish to go back to the days of Stephen Harper, when we had low growth and high unemployment, when there was still $150 billion added to the deficit and there was the failure by that government, despite repeated promises, to balance the budget. They only did it by selling GM shares. That is like selling the furniture to pay the rent. When we hear proud proclamations that they want to go back to those times, I can only say that this government is committed not to doing that.

Canadians will have a choice in the next election. Canadians can decide between a party that knows the price of everything but the value of nothing, or they can choose a party that sits down with Canadians from coast to coast to coast; examines the regional differences in this country, the economic differences in this country, the opportunities that support can provide; and understands that when we grow the economy and the capacity to pay debt and keep the GDP ratio as low as we have, good things happen. Canadians are working and healthy.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:40 p.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Madam Speaker, a parliamentary secretary is a representative of Her Majesty's government and the words he or she speaks, whether inside or outside the House, carry a lot of weight. They are a representation of what the Government of Canada believes. The parliamentary secretary made a very ill-advised tweet on the weekend, calling for the Premier of Ontario, Doug Ford, to be whacked.

I invite the parliamentary secretary to reflect on his minister's mandate letter that states, “Canadians expect us, in our work, to reflect the values we all embrace: inclusion, honesty, hard work, fiscal prudence, and generosity of spirit.” I am going give the parliamentary secretary a chance to apologize to the premier and all Canadians for his ill-advised comments.

Opposition Motion—TaxesBusiness of SupplyGovernment Orders

4:40 p.m.

Liberal

Adam Vaughan Liberal Spadina—Fort York, ON

Madam Speaker, I know the Conservatives like to cut things. I did not realize they had cut their sense of humour. The reference was made to Whac-A-Mole. It was made to a cartoon. If they choose to take the words deliberately out of context, it fits a pattern.

I made a statement later in the day when people were clearly taking the word “whack” to mean what the member opposite thinks it means. It cannot only mean one thing. I obviously said political violence has no place in this country and my words were not meant to incite violence in any way, shape or form. It was in reference to a cartoon of Whac-A-Mole. It is a popular game at many arcades and the idea was that the Ford government in Ontario was floating so many cuts so simultaneously that the only real way to deal with it was to deal with the government at election time by beating the government at the polls.

When I say “beat it at the polls”, I am not, again, inciting violence.