Alaina Lockhart

[Business of Supply, October 3rd, 2017]

Madam Speaker, I am pleased to rise today to speak to the issue of tax fairness and our government's efforts to bring greater fairness to Canada's tax system.

At its core, this is about a key commitment our government made during the election campaign, and has worked every day to deliver; that is to build a stronger middle class and help those working hard to join it.

Simply put, our government has always said that when we have an economy that works for the middle class, we have a country that works for everyone. That is why one of our government's first actions was to raise taxes on the wealthiest 1% of Canadians while cutting taxes for the middle class.

Our current proposals have the same objective, which is to make our system fairer for all Canadians and ensure everyone pays their fair share.

In our platform, we had a specific commitment to address the use of corporations to reduce personal income tax obligations for high income earners. Currently, an incorporated professional earning $300,000 can use the private corporation to get tax savings that amount roughly to the average Canadian's earnings for a year.

We understand these tax-planning strategies are legal. However, when we consider that these strategies are not available to all Canadians. it is clear they are not fair.

At present, a single woman with two children aged 12 and 14 and an incorporated business pays a tax rate that is higher than a married woman with two children aged 19 and 20 and an incorporated business bringing in the same revenue. That is not fair.

The changes we are proposing are aimed at eliminating the legal but unfair advantages that allow the wealthy to incorporate to avoid paying taxes on some of their income and to have a lower tax rate than individual taxpayers.

We do not believe that is fair, and most Canadians agree with this.

There is a lot of misinformation out there about these proposals and I would like to take a few minutes to address some of the more notable misstatements I have heard.

To begin, some have said that these proposals are an attack on middle-class small business. That could not be further from the truth. As the Prime Minister has said, as the Minister of Finance has said, and as so many others in this place have said before today, this is absolutely not true.

We know very well just how important small businesses are to our economy. Small businesses employ approximately 8.2 million Canadians, and this represents 70% of the private sector workforce and approximately 30% of GDP.

We are deeply committed to supporting middle-class small businesses so they do thrive and create good, well-paying jobs. We know just how hard these business owners work to provide for their families.

It is worth remembering that two-thirds of businesses in Canada earn less than $73,000 a year. These hard-working, middle-class small businesses are not our focus. We are supporting these businesses in many ways, as they invest, create jobs, and drive growth throughout our economy. For example, Canada's average tax rate for small businesses is the lowest in the G7 and the fourth lowest among the OECD. This allows small businesses to retain more of their earnings to reinvest, supporting growth and job creation.

Other commentators have expressed concern that our proposals are an attack on the family business. This is also not accurate.

Famliy is often crucial to the success of small businesses. I understand that, and so does the government. If a family member is paid for their work in a small business, the changes we are proposing will not affect them. Family members can continue working for the business without any repercussions.

However, we believe that high-income earners should not be allowed to pay dividends to adult family members through the corporation if those family members do not make significant contributions to the business, simply in order to avoid paying their fair share of personal income tax.

This type of tax planning is unfair because it is not available to all Canadians.

Our government understands that many small business owners save money in their businesses for the future, whether for a rainy day, future investments, or eventual retirement. When it comes to the actions that have already been taken, we have no intention of going back in time. Our proposals would only be applied on a go-forward basis. Our intent is that neither existing savings nor investment income from those savings would be affected. We are not going after the nest eggs. What is more, we encourage small business owners to continue using all available tax-sheltered savings plans, such as pension plans, RRSPs, and TFSAs.

Less than 3% of Canadians max out their RRSP, TFSA, or pension plan contributions. We are proposing to eliminate the legal but unfair advantages that allow some individuals to use unlimited tax-sheltered accounts that are beyond the means of most Canadians.

However, someone who saves money in their business with the intention of reinvesting it in the business or in a rainy day fund will be free to keep doing so. The proposed changes will not affect them.

Finally, I want to address the concerns of some doctors, who have raised concerns about their ability to take parental leave. Our proposals are about making the tax system fairer for everyone. All Canadians, employees, and small businesses can continue to benefit from pensions, employment income, and maternity leave, if they choose. However, our government has been clear since our election that we strongly support women entrepreneurs. The Minister of Small Business and Tourism has made it one of her priorities as minister.

We know that of small businesses in Canada, just under 17% are majority owned by women, and that is simply not good enough. That is why we have taken steps to create specific programs that support women entrepreneurs, and when it comes to these proposals, we are committed to ensuring that these changes do not affect women differently from men. Our government is committed to gender equality, and we will work to ensure that these changes support women's ongoing success.

It is worth reminding the House that our proposed changes will continue to protect businesses' ability to incorporate, make investments, save for downturns, and pay family members who work in the business.

They will protect and maintain small businesses' ability to succeed and create jobs, while ensuring that the wealthiest Canadians pay their fair share.

Our government is committed to building a fair tax system in Canada, and we want to get it right. Over the coming weeks, we will continue to listen to Canadians, including small business owners, professionals, and experts, on how to build such a system while avoiding any unintended consequences.

Although consultations have concluded, the work of the government continues, and we will continue to work with small business owners and professionals, like everyone else, to address their concerns.

Over the summer, a lot of misinformation has been spread, and I want to assure members of the House that our Prime Minister and the government are committed to listening to Canadians and getting this right. As the Prime Minister has said, better is always possible, and nowhere is that more needed than in creating a fairer tax tax system for Canadians.

When we have an economy that works for the middle class, we have a country that works for everyone.

[Taxation, September 28th, 2017]

Madam Speaker, we will carefully consider all the decisions we make. They will be guided by our main objective, which is to ensure fairness for the middle class and all those working hard to join it. We want to strike a balance, give everyone the chance to succeed, and put an end to certain injustices. That way, Canadians will be convinced that they have a fair tax system.

A fair tax system is pivotal in making sure our economy is really working for everyone, especially the middle class, and I am confident we are going to get this right.

[Taxation, September 28th, 2017]

Madam Speaker, I am pleased to have the opportunity to speak about the government's proposals concerning tax strategies involving private corporations. As members know, we are currently conducting consultations on proposals to address tax benefits for private corporations.

The government has asked stakeholders from across the country to provide their comments. It listened to what they had to say. The government found many of these comments to be helpful as they helped it better understand the impacts of its proposals. I can assure my colleague that we will report on what we heard and that, together, we will make decisions that will result in a fairer tax system.

It is important that we highlight some of the facts. To begin with, we are not increasing the small business tax rate. Canadian small businesses will continue to benefit from the lowest small business tax in the G7. Our proposals will have no impact on business's ability to save or invest for business. Our proposals will not affect individuals' ability to incorporate their businesses, nor will they prevent business owners from employing family members. It is also important to know that middle-class Canadians and small businesses are not the focus of our proposed changes.

We recognize that there are business owners and professionals who have saved and planned for their retirement under the existing rules. On this matter, I want to reassure everyone that our proposed changes to passive income taxation would only apply on a go-forward basis, not to existing savings, nor to investment income from those savings.

We will not introduce any measures that compromise this extraordinary advantage. That way, our businesses will continue to create jobs and to invest in their community. After all, Canada's corporate tax rates are among the most competitive in the world. For example, its small business tax rate is the lowest of all the G7 countries.

[Tourism, September 28th, 2017]

Mr. Speaker, I would like to welcome to Ottawa the ministers of tourism and indigenous leaders attending the meeting of the Canadian Council for Tourism Ministers.

Our government knows that tourism is an economic driver, representing almost 2% of GDP and supporting more than 1.7 million jobs across Canada.

That is why the Minister of Small Business and Tourism announced Canada's new tourism vision, our plan to support the growth of Canada's tourism sector, create jobs, and grow our economy for the middle class.

By working with our provincial, territorial, and indigenous colleagues, we are ensuring that the momentum we experienced this year celebrating Canada 150, and expect to continue in 2018 with the Canada-China Year of Tourism, continues for years to come.

[Regional Economic Development, June 14th, 2017]

Mr. Speaker, Atlantic Canada faces a number of unique challenges in growing our economy and encouraging businesses to innovate and export. One of those challenges is helping high-growth potential firms grow and stay in Atlantic Canada. These firms are generally small in size but their impact is significant. They are more likely to invest in their companies and people, while also exporting more than the average Canadian business.

Can the Prime Minister please tell the House how the government is helping these firms in Atlantic Canada?

[Salaries Act, June 8th, 2017]

Mr. Speaker, what I am hearing here today is another reflection of the disconnection that members opposite have with Atlantic Canada.

We have been very strong in advocating for the issues that are important to us and the things that our constituents are talking to us about. Just today, in fact, we talked very strongly about what has been going on in the immigration committee, the filibustering, and the disrespect of the witnesses who have appeared to try to make a difference in the economy of Atlantic Canada.

[Immigration in Atlantic Canada, June 8th, 2017]

Mr. Speaker, on November 2, 2016, I was proud to see every member of this House united and voting in favour of my Motion No. 39 to study the issue of immigration in Atlantic Canada. There was a mutual recognition of Atlantic Canada's important contribution to our country.

Sadly, it seems that the opposition's goodwill towards Atlantic Canada has since disappeared. Let me be clear: Atlantic Canadians are hard-working, unassuming people. Our region has known tough economic times, but we are working hard to find solutions. Immigration is definitely part of the solution, and the committee's study will be one more tool to help our region grow economically.

I am saddened to see members of the opposition filibuster this important study and show such disrespect for Atlantic Canada. The fact that the Conservatives and NDP are playing political games with the economic well-being of Atlantic Canada is nothing short of shameful.

I ask my colleagues opposite to end the political games, and let us all work together to support Atlantic Canada.

[Canadians Born in 1967, May 10th, 2017]

Mr. Speaker, Canada celebrated its 100th birthday in 1967. In that year 370,894 Canadians were born. These centennial babies were born when Frank Sinatra and The Supremes were fighting for top billing on the charts, in the year the Toronto Maple Leafs won its last Stanley Cup, and when Peter Mansbridge was still serving in the Royal Canadian Navy, his voice yet to be heard.

This year, however, they will be checking their iPads for birthday greetings on Facebook.

I want to wish all centennial babies celebrating this year, including seven members of this House and the centennials in my riding of Fundy Royal, a very happy 50th birthday. Let us remember that even though they may be greying faster, 1967 is an excellent vintage and is now aged to perfection.

Speaking of aged to perfection, today happens to be the 50th birthday of our friend and colleague, the hon. President of the Treasury Board. Happy birthday, Mr. President.

[Holidays Act, May 4th, 2017]

Madam Speaker, I am honoured to rise today and speak to Bill C-311, an act to amend the Holidays Act for Remembrance Day.

I want to praise my colleague, the hon. member for West Nova, for bringing forward the bill, but also for his tireless efforts on behalf of the women and men in the Canadian Armed Forces, and our veterans. We are both members of the Standing Committee on Veterans Affairs, and his passion for the commemoration of sacrifices made by our veterans is clear.

I appreciate the opportunity to speak today, because I believe one of the most poignant things we can do as proud Canadians is to join together as a nation and as individuals to recognize and pay tribute to those brave Canadian soldiers, sailors, and aviators who have made the ultimate sacrifice, in wartime and in peace, at home and abroad, to safeguard our values and our way of life.

Well before the people of Fundy Royal placed their trust in me to represent them in Ottawa, I would attend the Sussex Remembrance Day ceremonies every year with my family. One of my earliest memories I have is attending the local ceremonies in my hometown of Sussex, New Brunswick, where veterans and citizens alike paid their respects to those who came before and served our nation with dignity and with their lives.

I remember how we stood by the cenotaph alongside the Sussex train station, a place where many of the 300,000 personnel trained at Camp Sussex passed before, during, and after the World War I. It was also at this train station where many, but not all, returned home. I remember being a proud seven year old in my neatly pressed Brownie uniform standing beside my hero, my veteran, my grandfather. He made my Remembrance Day real. Together we waited for the clock to strike 11:11, and then walked up to the cenotaph to pin our poppies on white crosses.

The act of remembrance remains the most important ceremony for me each year. Since those days, I have had the opportunity to meet many heroes in many communities throughout Fundy Royal and New Brunswick because of the dedication of many organizations, including Royal Canadian Legion branches, cadet units, municipalities, and the 8th Canadian Hussars association.

I have witnessed each community's immense pride in their local heroes and contributions to the efforts of the Canadian Armed Forces.

I am sure every member of the House can relay his or her own story of the unique way his or her communities take pause for the act of remembrance. They do this at cenotaphs and memorials, community halls, auditoriums, hockey rinks, and public squares.

As we celebrate Canada's 150th anniversary, we are looking to the future and thinking more than ever what the Canada of tomorrow will look like and the values we hold dear, a year where we confirm that we are proud of this amazing land, its kind and welcoming people, and the example we have set for the world. I would agree with my honourable colleague from West Nova that as proud as we are of Canada, we are just as proud of the women and men who have served our country with distinction, and with their lives.

Bill C-311 will be another chapter in the progression of our efforts as Canadians to remember. What began as a response to the incredible losses of the First World War, where we lost almost one in 10 of the nearly 620,000 men and women of the armed forces, has evolved into a national tribute to all those who made the ultimate sacrifice and a consistent show of support for our Canadian Forces.

In 1919, as a response to calls for a commemoration to mourn these deaths and pay tribute to those who were returning from the Great War, King George V urged people across the Commonwealth to observe two minutes of silence at 11 a.m. local time. This was to be known as Armistice Day. From 1921 to 1930, Canada observed Armistice Day on the Monday of the week in which November 11 fell.

It was the Canadian Legion that began lobbying Parliament to enshrine in law, November 11 as Armistice Day. In fact, it was one of the original resolutions it had at its founding convention. In 1931, the hon. member for Comox—Alberni, introduced a bill to observe the date as November 11. Passed by the House of Commons, the bill also changed the name to Remembrance Day, and it was first observed in 1931.

The member for West Nova has given us a timely and special opportunity to mark Canada's 150th anniversary by introducing Bill C-311 to change the definition of Remembrance Day in the Holidays Act, from a holiday to a legal holiday. Not only will Bill C-311 elevate the status of Remembrance Day to the same level as Canada Day and Victoria Day, it will reconfirm the commitment of the House to veterans and their families, and those who are serving today, and will show our unwavering gratitude for their sacrifice and service.

Those who serve in uniform do it with bravery, honour, and dignity, protecting the values we cherish most, and doing so with their lives. Let each day we enjoy our freedom be a day we honour them in remembrance.

[Public Safety, April 11th, 2017]

Mr. Speaker, every morning Canadians get up and start their daily routines. They take care of their kids, bid good day to their partners, and head to work. Every day there are those who do the same, but their work is our safety. They run into fire, perform CPR on our loved ones, and put their lives on the line for us and our families.

Considering the impact that these community heroes have on our lives, would the Minister of Public Safety and Emergency Preparedness inform this House how the government is keeping its promise to support them and their families?