Mr. Speaker, I am pleased to speak in the debate on the budget. We are on the right track. Thanks to the efforts of Canadians, Canada has entered a new era, that of surpluses.
All Canadians, especially families with children, in all regions of the country will benefit from a budget that takes us to the future with an education system second to none, secure social programs and a five year plan of tax reduction.
With each budget I and many fellow Canadians have seen deficit spending being eliminated, progress being made by paying down the debt, our economy flourishing and the rate of unemployment declining at a faster rate than we had anticipated. The unemployment rate is now at its lowest level in 24 years. We must be doing something right.
In the budget speech the government made important announcements that will translate into a better quality of life for all. While we continue to follow a prudent and transparent approach to budget planning, with this budget we have delivered important investments in health care, in knowledge and innovation, in families with children and in the environment.
Since 1993 when I was first elected to serve my constituents of Niagara Falls in the House of Commons, the Standing Committee on Finance has consulted with Canadians from all walks of life and acted on their views and priorities year after year. In fact, I am delighted to see that many of the recommendations made by way of written submissions to a questionnaire sent to a great number of my constituents or by oral presentations to town hall meetings saw implementation in previous budgets.
The reviews from the riding on budget 2000 are more than positive. One of the headlines was “Niagarans are encouraged by this budget”.
I am proud to see that this budget as others before it is focused mainly on the welfare of our children, of our families, of our communities and of our environment.
The budget took into consideration evidence which suggests that the early years are vital for child development and their future ability to learn. It is only natural for parents to want their children to have the best and healthiest possible start in life.
As a result of budget 2000, families with children will see an increase in the Canada child tax benefit thanks to a boost of $2.5 billion. This means that families now receiving the Canada child tax benefit will receive more generous payments. More middle income families will qualify for this benefit.
The government's objective is to raise the maximum benefit to $2,400 for a family's first child by the year 2004. The benefit for a second child will also be raised to $2,200. This means that over the next four years low income Canadian families will receive $6 billion, while modest and middle income families will receive $3 billion.
These benefits as well as personal income taxes will be fully indexed so that family incomes will not be eroded by inflation. In all, the Canada child tax benefit will help nine out of ten Canadian children, or about 3.8 million families.
Budget 2000 puts forward the five year tax reduction plan that benefits all Canadians and families with children in particular. It is a plan that will put more money into the pockets of Canadians.
Our plan is secured by two fundamental changes. First, we are restoring full indexation of the personal income tax system. Second, for the first time in 12 years the middle rate will fall from 26% to 23%. This budget shows that it is possible to cut taxes and invest in the future at the same time. With this plan the government is providing real and lasting tax relief.
Tax indexation is not a new idea. Tax indexation was introduced by a Liberal government. It was later cancelled by a Tory government under Brian Mulroney, the same government which left us with a huge deficit which was eliminated not only by the good planning of this government but also by sacrifices made by all Canadians.
With indexation the automatic tax increases caused by the so-called bracket creep will disappear. This will benefit a great number of Canadian taxpayers. This means that the federal benefits such as the Canada child tax benefit and GST credit will no longer be eroded by inflation.
Indexation also means protection against inflation for seniors. While public pension benefits under the Canada pension plan, old age security and guaranteed income supplement are already fully indexed to inflation, the GST credit, the age credit and the OAS reduction threshold are not.
Canadian business will also benefit from tax cuts. This will in turn encourage innovation and investment and put all sectors of our economy on an internationally competitive footing. As a first step the government is lowering the tax rate paid by higher taxed industry mostly in the high tech and service sector from 28% to 21%.
Overall, budget 2000 provides at least $58 billion in cumulative tax relief to Canadians over the next five years. We are cutting personal income taxes by an average of 15%. Many will enjoy bigger cuts. Low and middle income Canadians will see their taxes fall by at least 18% and families with children will see their taxes on average fall by 21%.
By leaving more money in the pockets of Canadians we will see our economy flourish. In turn the government will receive more revenue. It will then be able to reduce taxes paid by Canadians even more. This will go on and on. The government will then be able to maintain funding for social services such as education, health and important infrastructures.
There are other important measures of this budget, for example the assistance that will be provided to Canadians with disabilities. By building on previous budget measures the federal government will extend support and implement tax initiatives to expand opportunities for persons with disabilities. It will help them and their families deal with the medical and care related costs.
Clean air, water and healthy habitats are essential to a higher quality of life. Understanding that our economy and our environment are closely linked is also part of the comprehensive strategy. Budget 2000 commits some $700 million in funding between 1999-2000 and 2002-03 toward the development of new technologies and tools that will meet our Canadian environmental challenges.
This initiative will be well received in my riding of Niagara Falls. Many of my constituents dedicate much of their time and energy to maintain and better our environment, to preserve and protect species indigenous to our area and the many spectacular natural beauties enjoyed not only by Canadians but by so many visitors to our area.
We are aware that our economy, especially the economy of the 21st century, requires the proper physical infrastructure. The budget proposes to work out a multi-year agreement with the provinces and the private sector to improve highways and municipal infrastructure. This will include green infrastructure and affordable housing in urban and rural communities across Canada.
My riding is a so-called border riding. As such it will benefit from the action taken in the budget to strengthen and control our borders.
The Canada Customs and Revenue Agency will receive incremental funding to modernize our border management process. This will allow the agency to devote more resources to enforcement activities that are most crucial to protect Canadian borders. Citizenship and Immigration Canada and the RCMP will also be receiving incremental funding and in this way will better ensure the safety of not only our borders but also of all Canadians.
Budget 2000 shows us that it is indeed possible to cut taxes and invest in the future at the same time.