Mr. Speaker, I am delighted to have this opportunity to speak in the budget debate today. I am delighted to have the opportunity to shed some light on one of the most deceptive documents I have ever seen. Watching the Minister of Finance perform in this house is like watching one of the greatest illusionists since Merlin the magician.
There are claims of no tax increases when the finance minister has introduced 35 tax increases, taking an additional $25 billion out of the hands of Canadians. Imagine what would have happened if that $25 billion had been left in the hands of consumers. Imagine all the spending Canadians would have done with that $25 billion. Imagine all the jobs that would have been created with that $25 billion. For some reason this Liberal government does not want Canadians to spend their own money. Instead the Liberals want to spend Canadians' money.
A movie about a sports agent, "Jerry Maguire", contains the line: "Show me the money. Show me the money". The finance minister and the Liberal government have adopted a slightly different version of the line. The government's version is "Give me your money. Give me your money".
Another example of the minister's smoke and mirrors is how he arrived at the $19 billion deficit.
Let us take a look at the Department of Citizenship and Immigration. In the main estimates which were tabled after the budget the department's spending decreased by $40 million. However, less than two weeks later, the department tabled its supplementary estimates. Instead of a $40 million decrease there was an $88 million increase. It is no wonder the finance minister can claim fiscal responsibility when government departments show their spending has been cut by 7 per cent the week of the budget and then increased by 15 per cent two weeks later.
The finance minister's greatest sleight of hand involves the Canada pension plan. I will go through this really slowly so government members, if they are around to listen, will be able to follow.
With the recently announced increase in CPP premiums, in six years Canadians will see 9.9 per cent of their salary going into the plan. For someone paying the maximum amount, that will mean the individual will pay $1,635, with the employer paying a matching amount.
Let us imagine that we have someone under the age of 30 paying the maximum amount for the next 35 years. That person and their employer will pay about $110,000 in premiums. I have heard that the average length of collecting CPP is 19 years. That means, in today's dollars, that individual would collect $165,000.
Is $165,000 a good return on an investment of $110,000 over 35 years? I would suggest that 99 per cent of Canadians would laugh at the idea that it is a good investment.
It gets worse. Under the provisions of the seniors' benefit which the Liberal government introduced last year, the first $12,500 of income over and above the seniors' benefit will be taxed at the rate of 50 per cent. That is right, 50 per cent. This poor soul who paid $110,000 into the Canada pension plan will not get that cheque for $724 a month; rather they will only receive $362 a month.
If this poor soul lives to collect his pension of $362 a month for 19 years, he will collect a grand total of $82,500. That is an $82,500 return on an investment of $110,000. I do not know what kind of mathematics it takes to show that is not a good investment. Only a member of the Liberal government would think it is a good deal.
Actually under this government's pension policies, it is a good plan for Liberal and Tory MPs. The Liberals have ensured that they will not have to worry about little things like the CPP. No, they do not have to worry about the Canada pension plan when they have their own gold plated pension.
While the average Canadian in the future will be struggling on their skimpy seniors' benefit and half of their CPP, these Liberal MPs will be basking in the glory of the richest pension plan in the country, so rich that it is illegal for any other Canadian to have a similar plan.
The finance minister has made sure that he and his fellow Liberals will enjoy most of their obscene pension.
One may ask, why is that? Under the provisions of the seniors benefit, that 50 per cent tax on pension income only covers the first $12,500. The next $12,500 is taxed at the rate of zero. That is right, there is no income tax on the next $12,500. That means it will completely cover the benefit that someone will receive from the Canada pension plan, but it will only touch a small portion of additional pension income, like the members of Parliament pension plan.
This means that the Deputy Prime Minister will be able to collect her full pension of over $50,000 a year when she reaches the age of 55, a full 10 years earlier than the average Canadian. When she turns 65 her CPP payments will be taxed at 50 per cent. However, that will be just a pittance to her because $12,500 of her gold plated pension plan will be tax free and the rest is only going to be taxed at a rate of about 20 per cent.
So while the average Canadian will have his or her CPP taxed at 50 per cent, these Liberal MPs will be laughing while paying less than 20 per cent tax on that outrageous pension. No wonder the Liberals think that this is a really great budget. For them it is.
No wonder the finance minister has refused to answer the Reform Party's tough questions about the budget. Instead, he uses a typical Liberal tactic of attacking Reform, of diverting people's attention from the real issue, his sham of a budget. Instead of paying his people to come up with a decent budget, he has them all working scouring everything the Reform Party has ever said about finances and then figuring a way to distort them.
Here is something that is not in Reform Party policy that I think I could get my colleagues to approve. While we normally are not in favour of tax increases, we would be prepared to support a very heavy tax increase on Canadian shipping magnates who register their ships in Panama so they can avoid paying Canadian taxes. We would be more than happy to tax these Canadians who export jobs out of Canada and would rather pay taxes in Panama than in Canada.
Perhaps it is time for the finance minister to lead by example. Perhaps it is time for the finance minister and his fellow Liberals to put their hands in their own pockets instead of the pockets of Canadians.