Mr. Speaker, I appreciate so much this opportunity to highlight some of the very important initiatives in the jobs, growth and long-term prosperity act, and to underline why we cannot let the NDP and the opposition more generally delay and defeat this important legislation.
Over the last few weeks we have seen the extreme left-wing ideology of the opposition members, not only in terms of their negative attitude toward such an important industry in Canada as our energy sector, but also most recently in the attitude of the Leader of the Opposition, as well as the leader of the third party, in their ridiculous idea of pumping millions and billions of dollars of good money after bad into Europe. Canadians are seeing the reality and the left-wing socialist ideology behind both opposition parties.
Let me begin by reassuring Canadians that unlike the NDP opposition, our Conservative government is focused on the economy, jobs and growth. While the opposition is looking at delay and conducting partisan games, we are focused on implementing economic policies that increase the prosperity and the well-being of Canadians.
Let me quote a recent Toronto Sun editorial for the benefit of the House. This is about what Canadians are saying about the NDP and the opposition delaying tactics. It states: “As Europe stands poised on the brink of a disastrous economic wildfire that could blacken the world, NDP leader['s] hypocrisy and self-obsession is in full flame....vowing to delay the passing of [the budget] by playing silly...with amendments and procedure.... This is nothing but grandstanding.... Right now, there is only one enemy in our fight to protect Canada from the repercussions of Europe's burning. And it's [the NDP leader].... This is inarguable.”
Indeed, since 2006, our government has supported the security and prosperity of Canadians and promoted business and investment to create jobs. When the global financial and economic crisis struck, these underlying strengths helped Canada to avoid a deep and long-lasting recession. Our government's sound fiscal position prior to the crisis provided the flexibility to launch the stimulus phase of Canada's economic action plan, which was timely, targeted and temporary in order to have maximum impact. This plan was one of the strongest responses to the global recession among the Group of Seven countries. The broad-based business tax reductions are reducing the costs of operating in Canada, making investment here more attractive, thereby encouraging firms to invest more in all sectors of the Canadian economy. This is increasing wages, creating jobs and raising the standard of living for Canadians. Along with our strong fiscal position, the solid banking system, and sound monetary policy, we believe that this approach to encouraging investment is the best way to improve the productivity of our businesses and indeed the prosperity of all Canadians.
However, we also have been clear. We believe that all Canadians should pay their fair share of taxes and not use loopholes to avoid their taxes. That is why our government has closed over 40 tax loopholes in recent years to improve the fairness and integrity of the tax system. The jobs, growth and long-term prosperity act takes further action on this front by modifying the penalty for making unreported tax shelter sales, to better match the penalty to the purported tax savings of the unreported tax shelter.
We understand that taxpayers willingly and honestly provide a portion of their hard-earned income to fund health care, social programs and other vital services that benefit all Canadians, demanding only in return that governments manage their tax dollars wisely and that their taxes be kept low. For our government, this is a solemn responsibility that we take very seriously. We understand fully that sustaining a voluntary tax system rests on the foundation of tax fairness.
In that context, and as part of the jobs, growth and long-term prosperity act, I would like to spotlight the improvements that we are making to enhancing transparency and accountability for charities. I think I can speak on behalf of my riding of Portage—Lisgar as one of the highest givers to charities. It is also one of the strongest Conservative ridings in the country, voting with a 76% plurality. It is quite interesting that in a very strong Conservative riding, Conservatives are willing to give back and willing to give to charity. They are not looking to the government and they are not looking to taxpayers to give to charities: they take out of their own pocketbooks. I would challenge socialists and NDPers to do the same thing.
Our government recognizes the invaluable role that charities play in communities across Canada. Canada has one of the largest charitable and non-profit sectors in the world, with more than 160,000 charities and non-profit organizations that help address some of the most daunting challenges that Canada faces.
Tax support for registered charities in Canada is considered to be among the most generous in the world, and that is important because there are so many great charities in Canada that do excellent work and they do that excellent work because of the generosity of Canadians.
Registered charities are exempt from tax on their income and may issue official donation receipts for gifts received. In turn, donors can use those receipts to reduce their taxes by claiming a charitable donation tax credit for individuals or charitable donations tax deduction for corporations.
In 2011, federal tax assistance for the charitable sector was nearly $3 billion. However, when Canadians give their hard-earned dollars to a charity they need to be confident that their donation is being put to good use.
Recently, concerns have been raised that some charities may not be respecting the rules regarding political activities. There have also been calls for greater public transparency related to the political activities of charities, including the extent to which they may be funded by foreign sources. Accordingly, to enhance charities' compliance with the rules with respect to political activities, economic action plan 2012 proposes that the CRA enhance its education and compliance activities with respect to political activities by charities. The plan also proposes to improve transparency by requiring charities to provide more information on their political activities, including the extent to which these are funded by foreign sources.
In addition, the plan proposes that the Income Tax Act be amended to restrict the extent to which charities may fund the political activities of other qualified donors, and again, an important aspect of our charitable donation system. Canadian taxpayers want to ensure that when they are giving these funds that they are not going toward political activity. It also proposes that new sanctions be introduced for charities that exceed the limit on political activities or that fail to provide the Canada Revenue Agency with complete and accurate information with respect to any aspect of their annual return.
These measures will help reassure Canadians that they can give with confidence knowing that donations of their hard-earned dollars are used to support legitimate charities.
Amazingly enough, even Toronto Star columnist, Thomas Walkom, who is no friend of our Conservative government, has voiced support for this provision. He said:
When [the] Prime Minister...says charities that engage in too much politicking should be denied tax subsidies, he’s right.
There’s no good reason why environmental groups that oppose oil pipelines should be able to finance their activities, in part, on the backs of the general taxpayer.
When passed, the jobs, growth and long-term prosperity act will take action to provide tax relief for numerous health care services, drugs and medical devices. This is good news for Canadians across the country. This will reflect the evolving nature of the health care sector and better meet the health care needs of Canadians.
Specifically, today's legislation before us seeks to exempt from the GST pharmacists' professional services, other than their prescription drug dispensing services, as well as expand the list of medical devices eligible for tax relief under the GST and income tax systems to include blood coagulation monitors.
In my time allotted today I have had the opportunity to touch on just a few of the very important tax measures that are in the jobs, growth and long-term prosperity act. I would encourage all members of the House to read the legislation and give it the support it deserves.
