Debates of April 5th, 2019

Question No. 2216

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

The Government is committed to the objective of an economy that works for everyone. In keeping with this objective, the Government’s focus since coming to office in 2015 has been to reduce taxes and increase support for the middle class and those who are working hard to join it.

One of the Government’s first actions was to raise personal income taxes on the wealthiest Canadians in order to cut taxes for the middle class. Over nine million Canadians are benefitting from the reduction of the second personal income tax rate to 20.5% from 22%. Single individuals who benefit are saving an average of $330 each year, and couples who benefit are saving an average of $540 each year.

The Government has been transparent in estimating the revenue impacts of these measures. On December 7, 2015, when these measures were first proposed, the Department of Finance published a backgrounder on its website: https://www.fin.gc.ca/n15/data/15-086_1-eng.asp. Table 2 of this backgrounder (Fiscal Cost of Proposed Tax Changes) provides a detailed breakdown of the estimated $8.2 billion revenue impact of the two federal personal income tax rate changes from 2015-16 to 2020-21. A footnote to Table 2 states that the estimates of the revenue gain from introducing a 33-per-cent rate on taxable income above $200,000 assume that those affected would respond by slightly reducing their taxable income on an ongoing basis.

In estimating the ongoing revenue impacts associated with the changes to the federal personal income tax rate structure, the Department of Finance has taken a prudent approach that reflects Canadian and international research on how individuals at different income levels respond to changes in tax rates.

Raising taxes on the wealthiest one per cent in order to cut them for the middle class has been a key step towards the Government’s goal of improving the fairness of the tax system and ensuring that the benefits of growth are shared among all Canadians. Measures like the middle class tax cut and the Canada Child Benefit have provided Canadian families with more money to save, invest, and spend in their communities. Families receiving the Canada Child Benefit are getting $6,800 on average this year. These and other measures introduced by the Government to support the middle class and those who are working hard to join it are driving higher levels of Canadian consumer and business confidence and supporting wage growth.

Going forward, the Government will continue to be guided by the objective of ensuring that the benefits of economic growth are widely shared.

Question No. 2217

[Dave Van Kesteren, Conservative, Chatham-Kent—Leamington, ON]

With regard to raising additional government revenue and potential sources: (a) does the government plan to increase government revenue; (b) what are the details of any discussions or meetings where the possibility of increasing government revenue was discussed, including (i) date, (ii) participants and location; and (c) do any supporting documents exist about any plan to increase government revenue, including but not limited to, e-mails, briefing notes, memos and reports, and, if so, what are the details of such documents?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

The Government of Canada is committed to ensuring that Canada’s tax system is fair, efficient, competitive, and functioning as intended to make sure that our economy is working for the middle class and all Canadians. While it would not be appropriate to speculate on future tax policy decisions, the Government’s record demonstrates that it has delivered on this commitment in many ways

One of the Government’s first actions was to raise personal income taxes on the wealthiest Canadians in order to cut taxes for the middle class. Over nine million Canadians are benefitting from the reduction of the second personal income tax rate to 20.5% from 22%. Single individuals who benefit are saving an average of $330 each year, and couples who benefit are saving an average of $540 each year.

In its first budget, the Government introduced the Canada Child Benefit. Compared to the previous child benefit system, the new Canada Child Benefit is simpler, much more generous, and better targeted to families who need it most. The CCB is also entirely tax-free. Nine out of 10 families are receiving more in child benefits than they did under the previous system, and hundreds of thousands of children have been lifted out of poverty. A typical middle class family of four is now receiving, on average, about $2,000 more per year in support than they did in 2015, as a result of the middle class tax cut and the Canada Child Benefit.

To put more money in the pockets of low-income workers, Budget 2018 introduced the new Canada Workers Benefit (CWB). The CWB is replacing the Working Income Tax Benefit beginning in 2019, and will encourage more people to join or stay in the workforce by making the benefit more generous and more accessible.

The Government has taken action to implement changes resulting from its wide-ranging review of tax expenditures. This included measures to improve tax relief for caregivers, students, and persons with disabilities.

The Government reduced the federal small business tax rate from 10.5% in 2017 to 9% in 2019. For small businesses, compared to 2017, this means up to $7,500 in federal tax savings each year—savings that they can reinvest in purchasing new equipment, developing new products, or creating new jobs. As the Government reduced the small business rate, it took action to make sure that this low rate is not used by some to gain unfair tax advantages as the expense of others.

In the fall of 2018, the Government introduced immediate changes to Canada’s corporate tax system that will further support investment, jobs and growth in Canadian businesses, creating opportunities in communities across the country.

In each of its budgets since coming to office, the Government has taken action to improve the fairness of the tax system through measures to prevent underground economic activity, tax evasion, and aggressive tax avoidance. In Budget 2016 and Budget 2017, the Government invested about $1 billion to support the efforts of the Canada Revenue Agency in this area. These investments are expected to add over $5 billion in additional federal revenues over six years. Budget 2018 announced additional funding of $90.6 million over five years to support the CRA in its continued efforts to ensure taxpayer compliance.

The Government has also taken action to close tax loopholes that result in unfair tax advantages for some at the expense of others. More broadly, the Government has engaged with international partners on an ongoing basis to combat aggressive international tax avoidance, including through enhanced sharing of information between tax authorities.

Going forward, the Government’s tax policy agenda will continue to be guided by the objective of a fair tax system that benefits the middle class and those working hard to join it.

Question No. 2218

[Dave Van Kesteren, Conservative, Chatham-Kent—Leamington, ON]

With regard to the capital gains tax exemption: (a) does the government plan to reduce or remove the capital gains tax exemption; (b) what are the details of any discussions or meetings where the possibility of reducing or removing the capital gains tax exemption was discussed, including (i) date, (ii) participants and location; and (c) do any supporting documents exist about any plan to remove or reduce the capital gains tax exemption, including but not limited to, e-mails, briefing notes, memos and reports, and, if so, what are the details of such documents?

[Joël Lightbound, Liberal, Parliamentary Secretary to the Minister of Finance]

The Government of Canada is committed to ensuring that Canada’s tax system is fair, efficient, competitive, and functioning as intended to make sure that our economy is working for the middle class and all Canadians. While it would not be appropriate to speculate on future tax policy decisions, the Government’s record demonstrates that it has delivered on this commitment in many ways

One of the Government’s first actions was to raise personal income taxes on the wealthiest Canadians in order to cut taxes for the middle class. Over nine million Canadians are benefitting from the reduction of the second personal income tax rate to 20.5% from 22%. Single individuals who benefit are saving an average of $330 each year, and couples who benefit are saving an average of $540 each year.

In its first budget, the Government introduced the Canada Child Benefit. Compared to the previous child benefit system, the new Canada Child Benefit is simpler, much more generous, and better targeted to families who need it most. The CCB is also entirely tax-free. Nine out of 10 families are receiving more in child benefits than they did under the previous system, and hundreds of thousands of children have been lifted out of poverty. A typical middle class family of four is now receiving, on average, about $2,000 more per year in support than they did in 2015, as a result of the middle class tax cut and the Canada Child Benefit.

To put more money in the pockets of low-income workers, Budget 2018 introduced the new Canada Workers Benefit (CWB). The CWB is replacing the Working Income Tax Benefit beginning in 2019, and will encourage more people to join or stay in the workforce by making the benefit more generous and more accessible.

The Government has taken action to implement changes resulting from its wide-ranging review of tax expenditures. This included measures to improve tax relief for caregivers, students, and persons with disabilities.

The Government reduced the federal small business tax rate from 10.5% in 2017 to 9% in 2019. For small businesses, compared to 2017, this means up to $7,500 in federal tax savings each year—savings that they can reinvest in purchasing new equipment, developing new products, or creating new jobs. As the Government reduced the small business rate, it took action to make sure that this low rate is not used by some to gain unfair tax advantages as the expense of others.

In the fall of 2018, the Government introduced immediate changes to Canada’s corporate tax system that will further support investment, jobs and growth in Canadian businesses, creating opportunities in communities across the country.

In each of its budgets since coming to office, the Government has taken action to improve the fairness of the tax system through measures to prevent underground economic activity, tax evasion, and aggressive tax avoidance. In Budget 2016 and Budget 2017, the Government invested about $1 billion to support the efforts of the Canada Revenue Agency in this area. These investments are expected to add over $5 billion in additional federal revenues over six years. Budget 2018 announced additional funding of $90.6 million over five years to support the CRA in its continued efforts to ensure taxpayer compliance.

The Government has also taken action to close tax loopholes that result in unfair tax advantages for some at the expense of others. More broadly, the Government has engaged with international partners on an ongoing basis to combat aggressive international tax avoidance, including through enhanced sharing of information between tax authorities.

Going forward, the Government’s tax policy agenda will continue to be guided by the objective of a fair tax system that benefits the middle class and those working hard to join it.

Question No. 2229

[Brigitte Sansoucy, NDP, Saint-Hyacinthe—Bagot, QC]

With regard to the funding granted under the Investing in Canada plan, since March 2016: (a) what applications were initially approved by Infrastructure Canada officials but then rejected by the Office of the Minister of Infrastructure and Communities; and (b) what requests were initially rejected by Infrastructure Canada officials but then approved by the Office of the Minister of Infrastructure and Communities?

[Marco Mendicino, Liberal, Parliamentary Secretary to the Minister of Infrastructure and Communities]

With regard to the funding granted under the Investing in Canada plan, since March 2016: (a) There were no instances where an application was initially approved by Infrastructure Canada officials, but then rejected by the office of the Minister of Infrastructure and Communities.

(b) The LaHave River Straight Pipe Remediation project in Nova Scotia.

Questions Passed as Orders for Returns

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

Madam Speaker, if a revised response to Question No. 1720, originally tabled on June 14, 2018, and the government's responses to Questions Nos. 2193 to 2196, 2199 to 2201, 2209 to 2211, 2219 to 2228, and 2230 to 2245 could be made orders for returns, these returns would be tabled immediately.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Is that agreed?

[Some hon. members]

Agreed.

Question No. 1720-

[Kelly McCauley, Conservative, Edmonton West, AB]

With regard to government advertisements (ads) launched on Facebook since January 1, 2016: (a) how many ads have been launched by month and what were the corresponding campaigns for each (ie. employment insurance, citizenship services, tax credits, grants, etc.); (b) how long was each ad active for online; (c) what were the insights for each ad launched, including (i) how many people were reached by each ad, (ii) what percentage of women and men were reached by each ad, (iii) what were the age group ranges used for each ad, (iv) what were the federal, provincial, or municipal regions targeted by each ad, (v) were specific interests, pages, or likes included in the targeting of the ads, broken down by ad; and (d) who in the department or Minister’s office receives or has access to the data gathered in the insights of these ads?

(Return tabled)

Question No. 2193

[Tom Lukiwski, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

With regard to government expenditures with Nesta Holding Company Ltd. or companies owned in whole or in part by Nesta Holding Company since January 1, 2016, broken down by department, agency, Crown corporation or other government entity, : (a) what are the total expenditures, broken down by company; (b) what are the details of each expenditure, including (i) date, (ii) amount, (iii) company, (iv) description of goods or services, (v) quantity, (vi) price per unit, (vii) file number, if applicable; and (c) on what date did the Chief Executive Officer of Invest in Canada Hub formally resign from the Board of Directors of Nesta Holding Company?

(Return tabled)

Question No. 2194

[Tom Lukiwski, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

With regard to the government’s plan to create a “critical election incident public protocol” group for the 2019 election: (a) what specific safeguards are in place to ensure that political staff in ministerial offices, including in the Office of the Prime Minister, do not influence any members of the group; (b) will there be a prohibition on communication during the writ period between members of the group and ministers or their exempt staff; and (c) if no prohibition exists, why is the government allowing communication between ministers or their exempt staff and members of the group?

(Return tabled)

Question No. 2195

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

With regard to “code names” used by the Department of National Defence: what are the code names used for the (i) Chief of Defence Staff, (ii) Minister of National Defence, (iii) various members of the Minister of National Defence’s exempt staff, broken down by individual, (iv) Prime Minister, (v) various members of the Office of the Prime Minister, broken down by individual, (vi) other ministers, broken down by minister, (vii) Clerk of the Privy Council, (viii) Vice-Chief of Defence Staff, (ix) Judge Advocate General, (x) Chief of Military Personnel, (xi) National Defence and Canadian Forces Ombudsman, (xii) Commander of the Royal Canadian Navy, (xiii) Commander of the Royal Canadian Air Force, (xiv) Commander of the Canadian Army, (xv) Commander of Canadian Joint Operations Command, (xvi) Director of Staff of the Strategic Joint Staff, (xvii) Canadian Armed Forces Chief Warrant Officer?

(Return tabled)

Question No. 2196

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

With regard to advertisement spending since January 1, 2018: (a) how much has been spent on advertisements originating from U.S. companies, broken down by each expenditure and medium (i.e. print or digital); and (b) how much has been spent on advertisements originating from Canadian companies, broken down by each expenditure and medium (i.e. print or digital)?

(Return tabled)

Question No. 2199

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

With regard to Bill C-344, An Act to amend the Department of Public Works and Government Services Act (community benefit): (a) what is the anticipated cost to taxpayers for its implementation; and (b) what are the findings of any cost analysis done by government departments?

(Return tabled)

Question No. 2200

[Charlie Angus, NDP, Timmins—James Bay, ON]

With regard to federal funding in the constituency of Timmins—James Bay, between April 2016 and January 2019: (a) what applications for funding have been received, including for each (i) name of the organization, (ii) department, (iii) program and sub-program under which they applied for funding, (iv) date of the application, (v) amount applied for, (vi) whether funding has been approved or not, (vii) total amount of funding, if funding was approved; (b) what funds, grants, loans, and loan guarantees has the government issued through its various departments and agencies in the constituency of Timmins—James Bay that did not require a direct application from the applicant, including for each the (i) name of the organization, (ii) department, (iii) program and sub-program they received funding under, (iv) total amount of funding, if funding was approved; and (c) what projects have been funded in the constituency of Timmins—James Bay by organizations tasked with sub-granting government funds (i.e. Community Foundations of Canada), including for each the (i) name of the organization, (ii) department, (iii) program and sub-program they received funding under, (iv) total amount of funding, if funding was approved?

(Return tabled)

Question No. 2201

[Charlie Angus, NDP, Timmins—James Bay, ON]

With regard to federal employment in the federal electoral district of Timmins—James Bay, broken down by department, municipality, and year since 2004: how many federal government employees are based in the above-named electoral district?