Mr. Speaker, as Parliamentary Secretary to the Minister of National Revenue, I am pleased to stand today against the NDP's opposition day motion. It is another opportunity to remind Canadians of the NDP's record on taxes. That record speaks for itself.
Time and time again, NDP members stand in this place and vote no against our Conservative government's actions to lower the tax burden, protesting efforts to leave Canadian families and businesses with more money to help them grow our economy. Even worse, the NDP continues to call for billions in new taxes on Canadians; that is, from a carbon tax that would raise the price of everything, to a $10-billion-a-year tax hike on businesses.
Unlike the NDP, our Conservative government believes that leaving more money in the pockets of hard-working Canadians is the right thing to do, and we have the record to prove it.
Since coming to office in 2006, we have cut taxes more than 150 times, reducing taxes in every way that government collects them. Actually, I just noted that, in one of the NDP mail-outs to its constituents, the whip encourages Canadians to ensure that they take advantage of these tax reduction opportunities. Even in its mail-outs to its constituents, the NDP is acknowledging the very important measures we have provided. It was quite gratifying to see the NDP actually sending out that mail-out.
We have cut taxes more than 150 times, and we have reduced them in every way that government collects them. We have removed more than one million Canadians from the tax rolls altogether, and the overall tax burden on Canadians is now at the lowest point in more than five decades.
Today, I would like to highlight some of these important measures that our government has done to support job-creating businesses across Canada—tax relief that the NDP consistently opposes.
Our approach to business taxation follows simple logic. Lower taxes make Canada's economy stronger and create stable, long-term jobs. Today, Canada has the best record of jobs and growth and recovery among the G7 nations. We can see how that plan is meshing and is working. In fact, a recent study by KPMG concluded that Canada's total business tax costs—business income taxes, capital taxes, sales taxes, property taxes and wage-based taxes—are more than 40% lower than those in the United States. Again, I just think we need to compare how Canada is doing against the United States fiscally and in terms of our net GDP-to-debt ratio in order to know our plan is working.
In short, our government has created an environment that encourages new investments, growth and job creation, one that ensures Canada has the strongest fiscal position and the lowest business tax costs in the G7.
When we consider our Conservative government's unparalleled commitment to lowering taxes, especially for job-creating small businesses, the NDP motion is a scary prospect for Canadians.
The NDP position is very well known. Theopposition House leader , the member for Skeena—Bulkley Valley, in British Columbia, summed it up best when he said, “...tax cutting is seen to be a failed strategy...”. That is absolutely wrong.
Let me now highlight some of our government's key initiatives that demonstrate our continuing leadership in lowering taxes for businesses, all of which, again I have to point out, the NDP voted against.
Canadians understand that a competitive business tax plays a key role in supporting businesses in all sectors of the economy to invest, grow and thrive. Our government has implemented broad-based tax reductions that support investment and growth. These cuts are delivering more than $60 billion of tax relief to job-creating businesses over a six-year period, ending in 2013-14.
For example, to spur investment and productivity, we have reduced the federal business tax rate to 15% in 2012 from 21% in 2007, which is amazing support for our corporations. The small business tax rate was reduced to 11%, and the amount of income eligible for this lower rate was increased to $500,000 in 2009.
Canada's system of international taxation was improved to better support cross-border trade and investments. These actions are part of a policy framework that increases the productive capacity of the Canadian economy as well as Canadian living standards.
Lower business tax rates and other tax changes have increased investment in Canada and reduced the costs of expanding, giving businesses strong incentives to invest and hire in Canada.
Our government's low-tax plan is helping to guide the Canadian economy along the path of sustainable economic growth. Real business investment in Canada is now 8.1% higher than its pre-recession peak, while no other G7 country has even returned to its pre-recession levels. Again, having a positive business environment encourages people to come and invest. It encourages the job creators in the country that produce the wealth for those important social services program and the things we value.
More examples include tax relief for new manufacturing machinery and equipment that will help businesses invest for the future. The accelerated capital cost allowance for machinery and equipment used in the manufacturing and processing sector was first introduced in budget 2007 and extended in budget 2008, budget 2009 and budget 2011 in response to the ongoing global economic challenges.
The ACCA allows businesses to write off eligible investments faster, providing them with the support they need to retool and remain competitive. Canadian businesses from across the country have applauded this measure, which is very important in helping them to expand. Indeed, as the finance committee heard from witnesses from across the country, this was a consistent message in terms of ways that we could support the business communities. In total, more than 25,000 businesses in the manufacturing and processing sectors, employing Canadians in all regions of the country, have taken advantage of the accelerated capital cost allowance since it was first introduced in 2007.
On the advice of the Canadian Manufacturing Coalition and others, we will provide $1.4 billion of tax relief over four years to the manufacturing and processing sectors through a two-year extension of a temporary accelerated capital cost allowance for new investment in machinery and equipment. This tax relief will encourage manufacturers and processors to accelerate and undertake additional investment in machinery and equipment, making their operations more productive and globally competitive. It will enable manufacturing and processing companies to plan and invest over the coming years and help create jobs in a sector that has been particularly hard hit by the global recession.
Key measures introduced by our government are already delivering substantial tax relief to small businesses and small business owners. Reductions in the small business tax rate to 11% and increases in the small business income limit to $500,000 are estimated to provide small businesses more than $2 billion in tax relief in 2013 and more than $10.4 billion over the 2008-09 to 2013-14 period.
I would like to give an example. A small Canadian controlled private corporation, with $500,000 in taxable income, has seen its federal corporate tax bill decline by more than one-third, from $83,600 in 2006 to $55,000 in 2013. That is a tax saving of over 30%, or $28,600, that can be reinvested in the business to fuel the growth and expansion that creates new jobs.
Again, I have to point out that the NDP shamefully voted against all those tax reductions for small businesses.
However, we are doing even more than this. The lifetime capital gains exemption on qualified small business shares was increased to $750,000. It was at $500,000 in budget 2007. We are looking at the first increase in an exemption since 1988.
This LCGE, as it is known in short form, is estimated to be delivering almost $1 billion of federal tax relief annually to small business owners, farmers and fishermen, and certainly every one of us in our ridings see the challenges small business owners face and the very important role they play in our communities. They are the first people supporting jobs, training for young people and communities and the many endeavours undertaken. It is a giant first step in 2013 and will go up to $800,000 in 2014. In addition, to ensure that the value does not erode over time, we will index a new $800,000 LCGE limit to inflation, which is for the first time ever, something members of the finance committee heard people across Canada ask for.
Representatives of job-creating businesses, large and small, have told us time and time again that this tax relief is crucial in helping them expand their operations and hire more Canadians, but again opposition members are just not listening. Maybe they will take note of the words of Jayson Myers, president and CEO of the Canadian Manufacturers & Exporters, who explained:
—business tax cuts are benefiting Canadians in very important ways....While...tax rates have fallen, the amount of money businesses are paying to government is--in fact--increasing because their investments have made them more competitive, more profitable, and have allowed them to grow.
That is a really important illustration of how lower taxes actually can generate higher revenue.
Not only that, but the Canadian Manufacturers & Exporters has stated unequivocally:
If governments had not provided tax relief for Canadian businesses, the recession would have been deeper and unemployment would have certainly been higher.
I cannot imagine a clearer message from Canada's job creators and yet opposition members' wilful ignorance on taxes prevails.
Perhaps the NDP member for Windsor West had his head in the sand when he remarked in the House:
—the reality is that the tax cuts are not even the number one thing the corporations are asking for...tax cuts are not the priority.
That was a very puzzling statement. The bottom line is that when it comes to job creation, our Conservative government is listening to Canadians who are telling us what works while the NDP cannot seem to shake off some ideological commitment to higher taxes.
Since 2006, our government's number one priority has been creating jobs for Canadians and I am proud that we followed through on this commitment again in budget 2013, especially when it comes to small businesses. In recognition of the critical role that small businesses play as job creators in the Canadian economy, the economic action plan proposes to extend for one year the temporary hiring credit for small businesses. This temporary credit will be available to an estimated 560,000 employers, allowing small businesses to reinvest approximately $225 million in job creation in 2013.
Certainly, in my role as parliamentary secretary, I am especially pleased that economic action plan 2013 has announced that CRA will take even more action to reduce red tape and improve services for small businesses. For example, CRA has created a dedicated team that is responsible for coordinating and addressing small business issues. The CRA has mandated the team to ensure that the agency takes a small business lens approach to service improvements, with a renewed and enhanced focus on cutting red tape. This focus on engagement with small business stakeholders will ensure that the perspectives of the small business community are continuously taken into account in every aspect of the work that CRA does.
Last summer, when I conducted round tables across the country, I heard that we need to do a little more. Again, we are looking at a wide range of additional electronic services for businesses to be implemented to build on the success and help businesses get what they need faster, reduce paperwork, save time and help the environment.
I would like to provide another example. In April 2013 business owners can choose to go paperless and rely exclusively on electronic notices stored in the secure “My Business Account” portal, accompanied by emails directly from the Canada Revenue Agency.
I am also pleased to tell Parliament that CRA is expanding its small business focus across all operations and moving toward a “tell us once” approach, so that small businesses will not have to submit the same information several times.
Under our Conservative government, the CRA is helping small business owners avoid costly and time consuming audits by raising awareness of their tax obligations in order to get them the help they need right from the start.
Canada's entrepreneurs and risk-takers are confronted with the many challenges of a globally competitive marketplace each and every day. These entrepreneurs need their government to be a partner in achieving success through lower taxes, not an impediment caused by the NDP's plans for higher taxes and reckless spending.
Job creators know that in our government they have a partner. Since 2006, we have designed and implemented policies aimed at driving the economy to its full potential for the benefit of all Canadians.
Economic action plan 2013 sets a path to return to balanced budgets by 2015, which will strengthen Canada's fiscal advantage and spur long-term jobs and growth.
Today, Canada's is universally recognized for its resilience through the global recession and recovery, its low tax environment, its highly educated and skilled labour force, its natural resource endowment and a financial sector that is the envy of the world.
However, we cannot become complacent. In a fast-changing, competitive global economy, Canadians must continually aim higher to avoid falling behind.
Together, the initiatives in economic action plan 2013 build on previous government action to reinforce the fundamental strengths of the Canadian economy. The results so far dramatically highlight the wisdom and effectiveness of our decisions, with 900,000 net new jobs, the best record in the G7.
Even better, Canada stands among just a handful of nations with a triple A credit rating. Canada remains one of the most welcoming and profitable places in the world for international business and foreign direct investments.
By lowering taxes, reducing red tape and removing barriers to trade and investment, we have made Canada one of the most welcoming and profitable places in the world for international business and foreign direct investments.
The facts are clear. We stand for low taxes and private sector growth. The NDP stands for high taxes and big government. The NDP plans massive new taxes, be it a carbon tax that would raise the price of everything or massive new business tax hikes.
For these reasons, I know the NDP motion will be rejected by Parliament.
