Madam Speaker, I am very pleased to rise today. Before I start, I will mention that I will be sharing my very valued time with my colleague from Brandon—Souris.
I am rising today to talk about Bill C-4 and its various issues. I will start with the tax cut first. I am a big fan of Milton Friedman, who is famous for the line, “I am in favor of cutting taxes under any circumstances...for any reason, whenever it's possible.” I actually had a watch done up on with that slogan and a picture of Milton. I agree with that very much, but when Milt Friedman mentioned this, he had the assumption that the tax cut would come with an accompanying cut in spending, or a reduction in spending somewhere.
Unfortunately, with the government, we have a minor tax cut, which is going to cost the Treasury billions, and it is all borrowed money. The Liberals seem to have a reverse Milt Friedman attitude. It is to spend more, but instead of finding a balance, borrow more. Eventually, every penny of this tax cut, minor as it is, is going to be paid for by the next generation, the generation after that, the generation after that, and on and on.
Now, when listening to the government, including those in the House today, one would think this tax cut was some monumental life-changing amount that would make their lives so much better. We just heard how it is going to give hope to the middle class, yes, hope for the middle class. Two million people are going to a food bank in Canada every month. When questioned, the government says “the middle class tax cut”, as if this tax cut is going to allow these two million Canadians to leave the lineup at the food bank and be able to afford groceries at home.
When we question the government, we end up hearing about this tax cut, despite youth unemployment, record deficits and record lineups at the food bank. What do Canadians actually get from this tax cut, apart from a future bill down the road?
I am going to read right from the Parliamentary Budget Officer's report, which says, “The average savings range from $50 for a low-income single senior, to $750 for high-income couples with children.” Now, we have to wonder what it is with this government that it would bring in such a tax cut that would benefit the well off. We have a progressive tax system, but it is like my colleague from Mirabel says, it looks like they rolled it out without any thought of what was going to happen. A low-income single senior is going to get $50. A wealthy person, like those in the House, are going to save more, up to $750.
Continuing on with the report, a single senior in the lowest income bracket will save 13¢ a day under this Liberal tax cut. Again, any tax cut is better than a tax increase, but my point is, repeatedly, when we stand in the House to talk about the problems that we are facing in Canada right now, such as food inflation, etc., the Liberals push this out as the saving grace. They say that everything will be okay because we have a tax cut of 13¢ a day. It is about $50 a year in savings. Food inflation, based on 3.5% for last year, cost the average person $150.
This vaunted tax cut does not even cover 50% of the cost just for food inflation. However, somehow, when we bring up two million people at food banks, the government says, “Oh, don't worry, we have the middle class tax cut.” They want people to do something with that 13¢. For a couple with a child in the first income bracket, 68¢ a day is what they will save with this tax cut, or $250 a year on average, according to the Parliamentary Budget Officer. For a family of three, food inflation cost them an extra $420 last year, but they are going to get $250.
Now again, I will state, like Milt Friedman, I am for tax cuts, but this cannot be the be all and end all of addressing the issues we are having in Canada right now. Canadians want a better answer for the 2 million people lining up at foods bank than to hear that Conservatives voted against a tax cut. Canadians deserve better.
I will note that, if someone is single with no child in the upper tax bracket, they would be saving 50% more than those in a lower-income couple who are both working and have a child. A couple with no children, and both are in the second income tax bracket, will get $710. A couple in the top tax bracket will get back $750.
I know we have a progressive tax system, and therefore, if someone is earning more, they are going to save a bit more, but I would argue that, instead of this poorly thought out election pledge, or propaganda pledge, if we are listening to the Liberals in the House, the Liberals could have used the money to increase the Canada workers benefit, which would help out very low-income workers, and perhaps top up the GIS. Yes, people are not paying taxes if they are on GIS, but it would certainly help out a lot more than paying wealthy Canadians an extra $750.
Taxes across the board are too high in this country, but if the Liberals are going to do a little boutique cut like this, they should maybe focus on those who are a lot more in need than those earning the top incomes.
Now, I will move on to the GST rebate. Again, it is a tax, so I am very happy to see the tax being reduced. Any tax cut is better than no tax cut, but I think the one that the Conservatives proposed in the last election was far superior. It allowed up to $1.3 million, but also allowed it for people who would be buying their second home. It did not restrict it to only first-time homebuyers.
The member across the way talked about his son buying a house four years ago. It would have been nice if he could have taken advantage of it. I do not see why we discriminate against someone who has owned a house before. Someone selling their house to buy a newbuild house opens up inventory of the previous house. It is silly that we put these rules forward.
One of the issues I do have with the program the Liberals introduced is that they announced it on March 20, and we have heard that there were people running out and buying a house immediately. It came into effect on March 27 with the ways and means motion, but it meant that the second it was dropped in the House as a ways and means motion, if someone had signed to buy a house the day before, even if it was going to be built for six months or a year, they were cut out of the system.
We brought this up in the House, and I mentioned we had worked with the government in a non-partisan fashion to get this done. The member for Mirabel brought through some changes in finance committee to address this for those who had purchased when the announcement was made, and the Liberals in the House stood to fight against that. Canadians, through no fault of their own, took it on good will that the government was bringing this in.
It is silly. I realize we have to cut off with the ways and means motions to stop people from gaming the system, but if someone had bought a house and signed the documents, but the house was not going to be built until a year from then, and that is when the GST would be paid, it would make sense that they would not have to pay the GST immediately because of the cut-off date.
Conservatives reached out to the government to see if it would find some way to address that. Many people in Edmonton West were blessed that we built a lot of new homes. In Edgemont, in the southwest part, new homes are going up like gangbusters. The government should address this, but it chose not to.
The last issue is the carbon tax. Do members remember all the Liberals standing in this place saying that the world would burn if we did not have a carbon tax, and that we are basically Satan if we disagreed with their carbon tax dogma? The member for Winnipeg South, who was here earlier, said that carbon pricing does not contribute to inflation. The Liberals stood and repeatedly said that the carbon tax does not lead to inflation, but now they pretend that they are the heroes for killing the carbon tax.
Stats Canada, by the way, states that the carbon tax did cause inflation. The Liberals' own budget 2025 stated five times that the carbon tax caused inflation. Public Accounts notes it, and even the Bank of Canada notes it. I am glad it is gone. I just wish the Liberals had not pushed this hypocrisy saying that the carbon tax did not cause inflation.