Cathy McLeod

[Business of Supply, February 17th, 2011]

Madam Speaker, one of the prominent examples that stands out in my mind is our economic action plan, which saw us through one of the worst global economic recessions since the Great Depression. Part of our process was doing quarterly reports. We released them not only to all parliamentarians but to all Canadians.

We knew we were providing significant stimulus and it was going to create a deficit. Everyone agreed it was unfortunate we had to do that at the time, but we were completely transparent, more than perhaps any government throughout time, in terms of sharing with Canadians where their money was going, why it was going there and doing quarterly reports for all Canadians.

[Business of Supply, February 17th, 2011]

Madam Speaker, the member talks about benefits for seniors. To help seniors, it is absolutely a multi-pronged approach. I can use many personal examples where the wife stayed at home and raised the children and the husband perhaps had a benefit. Indeed, those people are benefiting greatly.

Do we need to consider a comprehensive approach? Absolutely. However, is income splitting a hugely important measure for many seniors? Absolutely. I would never withdraw that. I have talked to many pensioners who have found it to be a life saver.

[Business of Supply, February 17th, 2011]

Madam Speaker, I have listened to many question periods. When asked how much these crime bills would cost, the minister has stood and given very direct answers.

This morning we were talking about this. One of the colleagues from the NDP said that in white-collar crime there were victims, although some people thought it was victimless. He had great compassion for the victims of white-collar crime. At that time, we were examining tax havens and people losing their life savings. It would be very interesting to know how the member opposite can look at his victims and his constituents who have had their life savings taken away and say them that the criminal only has to live with one-sixth of the sentence.

[Business of Supply, February 17th, 2011]

Madam Speaker, I was sitting in the finance committee a few short days ago. The Parliamentary Budget Officer was there to present his economic forecast. If we want to drill this down to understanding the impact of corporate tax cuts, for example, he said that they had already been included in his economic forecast, that he had considered what the impact of corporate tax cuts would be. He provided very clear documents around the impact of the corporate tax cuts.

It is important to note that it was another economist, who was there shortly after, who also had a very clear idea with regard to integrating the 2007 corporate tax cuts into his fiscal projections. He came out with a bit of a different answer, which indicated that the margin of error was very small.

Many people have analyzed the impact of corporate tax cuts and all of these measures with regard to Parliament and the ability of parliamentarians to make decisions.

[Business of Supply, February 17th, 2011]

Madam Speaker, it is also important to acknowledge the intervention of my colleague. The context of our current economic situation really creates the conversation in the debate. I appreciate that and ensure that I tie it all together.

In every region of Canada, families and businesses are paying less tax and unemployed workers are receiving better support and new training. Many job-creating infrastructure projects are nearing completion, while colleges and universities are benefiting from new investments. Canadian manufacturers are still in the process of recovering from the recession as they continue to deal with rising commodity costs and intense competition from all over the world.

Reducing business taxes, therefore makes more sense. It will leave more money in the hands of manufacturers that can then make necessary investments in their workforce and in their plants to compete and grow in domestic and global markets. It is no wonder then that the Canadian Manufacturers and Exporters say that the question is not if we can afford corporate tax cuts, it is can we afford not to.

We have more than 110,000 businesses in Canada that are benefiting from our tax relief on job creators. By encouraging these 110,000 businesses to grow and encourage more and better paying jobs for Canadians, business tax cuts are raising the standard for living.

A $6 billion tax hike will do the opposite. It will stop our recovery in its tracks and hurt job creation. It is irresponsible, it is pure politics and it is short-sighted.

If Liberals do not believe what our Conservative government has to say, maybe they should listen to the former Liberal finance minister and Liberal deputy prime minister, John Manley who said, “I support the plan to reduce the statutory corporate tax rate to 15% by 2012”.

These reductions have been supported by governments from the left, right and centre of the political spectrum. Behind the strategy is a recognition that few things matter more to Canada's economic health and future prosperity than our ability to attract and retain investment.

For a number of years, Canadians relied on a cheap dollar to make our goods more competitive in foreign markets, but those days are gone. To compete for investment today with our strong dollar and growth in many of our export markets, which are still weak, Canada needs a significant tax advantage.

I do not think we should underestimate the benefits of these changes. We are transforming how Canada is seen by investors looking for places in which and from which to do business globally. Reforming the tax system in a way that promotes business investment and growth is a hugely positive move.

To tie it all together in terms of accountability, our government, not only through the Federal Accountability Act but also through the Parliamentary Budget Officer, is giving the tools to Canadians and to all the parties in the House which were unknown in the past.

Again, I am proud of our government. I am proud of the important work we are doing in terms of tax reduction. I am very proud of the tools that we have been providing to all parliamentarians.

[Business of Supply, February 17th, 2011]

Madam Speaker, today I rise to debate another misguided Liberal motion on our plan to reduce taxes for Canadians and get tough on crime.

Whenever a Liberal talks, it seems it is about raising taxes. We prefer to take another tack and talk about lowering taxes for Canadians.

It is a good thing our government has a long record of providing tax relief for hard-working Canadians such that I could continue all day, which I am sure all members here would enjoy.

The Liberals could also talk long about their own tax record. Unfortunately, it would be to discuss all the ways they would like to increase taxes, such as a GST hike, an iPod tax, a carbon tax, and it goes on and on.

Let us look at our Conservative government's tax record. Since taking power, we have cut over 100 taxes. We are cutting taxes in every way that we collect them, from excise taxes and sales taxes, to business taxes and personal taxes.

One of our first actions on taking office was to reduce the GST by 1%, to 6%, but we did not stop there. We then reduced the GST by another 1%, to 5%.

Of course, whenever we cut taxes, we hear howls from the Liberals. Indeed, the Liberals were so incensed that we would lower Canadian taxes that the member for Kings—Hants, when asked if he would repeal the GST cuts, said, “Absolutely”. He was joined later by the Liberal leader, who would infamously say, “I'm not going to take a GST tax hike off the table”.

Thankfully for Canadians and their wallets, the tax-and-spend Liberals are not in power and a Conservative government that believes in lower taxes is.

This is a government that believes in lower taxes for Canadians, like our seniors, and has demonstrated this with tax relief measures such as pension income splitting. This is one of the most significant tax changes for seniors and is saving some seniors thousands of dollars every year on their income taxes. This is a move that was praised by seniors' groups. The New Brunswick Senior Citizens' Federation said, “On behalf of the 21,000 seniors citizens we represent in New Brunswick, we commend you for introducing the opportunity for our seniors to utilize pension income splitting. This change will mean additional moneys for our seniors who are mostly on a very limited fixed income”.

We also doubled the pension income credit and increased the age credit amount by over $2,000, but our Conservative government did not stop there. We introduced the child fitness tax credit to help parents get their kids into organized sports. We introduced the child tax credit to provide much needed assistance for families across this country. We introduced the public transit tax credit to help people make the decision to take public transit. In our local newspaper this morning when it looked at a raise in the cost of public transit in our community, one of the young students said, “I have that public transit tax credit, so it helps ease the pain”.

We lowered Canadians' personal income taxes and, perhaps more important, we introduce a tax-free savings account, the most important personal savings vehicle since the introduction of the RRSP. Nearly five million Canadians are already benefiting from having their capital gains earned tax free.

In the end, the most important thing is what our record of tax relief means for families. Our tax relief measures mean a lot for Canadians. The tax savings for a typical family is $3,000. Let me say that again: a tax savings of $3,000 for the average family. That means a lot for the average family in Canada. I am proud to be part of a government that has made that happen.

Let me turn again to the topic that brings us here today: our tax relief for businesses. Let us review some of the ways our government has reduced taxes for businesses.

We reduced the federal capital tax in 2006 which was seriously harming business investment in Canada. To encourage provinces to remove their capital taxes, we introduced the temporary financial incentive to help provinces remove their capital taxes. With our help, by 2012, capital taxes will be eliminated. We reduced the small business tax rate to 11% in 2008. We also increased the income eligible for this lower tax rate from $300,000 to $500,000. It was a move that recognized that innovative and growth-oriented small businesses play a vital role in the ongoing health of our economy.

To help Canadian businesses weather the global economic storm, in Canada's economic action plan we also introduced a number of temporary tax measures to stimulate the economy. For example, to promote the exploration and development of Canada's rich mineral resources, the mineral exploration tax credit was extended in budget 2010. This temporary 15% credit provides important benefits in terms of employment and investment, especially for rural and remote communities. This is especially helpful in my home province of British Columbia. In the words of the Mining Association of British Columbia:

With British Columbia’s mining industry emerging from recent economic challenges, MABC is encouraged by this federal budget's initiatives that will help ensure that recovery does not falter.

MABC was pleased to see...a one year extension of the 15 percent mineral exploration tax credit....combined with a stay-the-course plan to continue reducing corporate income tax rates...important to the recovery currently under way in the mining sector.

As the previous quote alluded to, we are lowering business taxes from over 22% in 2006 to 15% by 2012, as passed in 2007 by Parliament.

Canadians are benefiting from permanent tax relief that is broad-based, fiscally durable and structurally sound. Lowering taxes on job creators means that more jobs are created. It is a simple calculation, but an important one. It is one that has been confirmed by leading economists in Canada. The Canadian Manufacturers and Exporters as well as Jack Mintz, one of Canada's top private sector economists, have shown that lowering business taxes means thousands upon thousands of more jobs for Canadians.

At a time when we are exiting a global economic recession, now is not the time to hike taxes on job creators. Liberals used to know that, but instead, they have decided to turn a blind eye for cheap political gain.

The member for Kings—Hants knew this when he said, “We cannot increase corporate taxes without losing corporate investment. If we lose corporate investment, we have a less productive economy.... That means fewer jobs. That means more poverty”.

The member for Wascana knew this when he said, “Canadians deserve the facts” and that the NDP leader's “numbers are simply wrong, and he is trying to obscure the true benefits of business tax cuts, namely jobs and economic growth”.

I agree with the member for Wascana. Canadians do deserve the facts.

If we want higher wages, more jobs and a higher standard of living, we need the business investments that result from our government's tax cuts on job creators. Are our efforts paying off? Without a doubt, yes. Compared to other major industrialized countries, Canada is indeed weathering the recession better than most. Our strong economic, financial and fiscal fundamentals have contributed to that success, along with our economic action plan.

Over 460,000 more Canadians are working today than in July 2009, the strongest job growth in the G7. Compare this labour market recovery to the ongoing labour market challenges in the United States, where employment remains well below its pre-recession level. Tax relief for Canadian businesses has without a doubt contributed to Canada's relative success.

Whether the Liberals really appreciate it or not, tax relief has helped build a solid foundation for economic growth, job creation and better prosperity. Improving the competitiveness of the Canadian tax system of course requires collaboration among all governments to help Canadian businesses compete globally. Fortunately, reducing business tax makes so much sense the provinces are following our example. B.C., Ontario, New Brunswick and Manitoba have also reduced their provincial taxes on businesses.

The Liberal Ontario finance minister, Dwight Duncan, is a stalwart defender, saying, “Scrapping...corporate tax cuts would hurt the fragile economic recovery by raising taxes on the...forestry and automotive sectors”. He said that scrapping them is “about the most shortsighted, dumb, public policy pronouncement one could envision”. Liberals proposing a shortsighted dumb public policy? Shocking, I know.

The fact is that along with the provinces we are helping Canada build a strong foundation for future economic growth, job creation and higher living standards for Canadians, to the point where Canada is now increasingly recognized as a model for business taxation.

A recent editorial in the Wall Street Journal noted:

Twenty-two years ago we wrote an editorial--'North to Argentina'--warning Canada that economic prosperity isn't a birthright but requires sound policies like free trade. Nowadays, that's a lecture Canada could credibly deliver to Washington on business taxes.

The government also recognizes that unnecessary regulation imposes significant costs on business and adversely affects productivity and economic growth. The Canadian Federation of Independent Business estimates that businesses in Canada currently spend over $30 billion each year complying with regulations. Over the past four years, the government has taken important steps to reduce the administrative and paperwork burden on Canadian businesses.

In March 2009 the government met its target of reducing the paperwork burden on companies by 20% and eliminating almost 80,000 regulatory requirements and information obligations with which businesses must comply.

To sustain that momentum, this January the government followed through on its budget commitment and announced the creation of the Red Tape Reduction Commission with parliamentarian and private sector representatives. It will work to reduce the burden of federal regulatory requirements on Canadian businesses, especially small and medium businesses. As a member of that commission, I must say it is working extraordinarily well. It will consult with Canadians and Canadian businesses to identify irritants that have a clear detrimental effect on growth, competitiveness and innovation. The commission will provide advice on permanent solutions to control and reduce the overall regulatory compliance burden. I am honoured to be a part of that commission finishing the job.

It is important to remain vigilant in maintaining Canada's position on the world stage. That is why our Conservative government's number one priority remains the economy. Canada's economic action plan was intended to help guide the economy while being ever mindful of the country's long-term future. It has provided a balance between stimulating our economy in the short term and building our capacity in the long term. The plan is working in every region of Canada's family--

[Business of Supply, February 8th, 2011]

Madam Speaker, we do not have anything to apologize for in terms of investments in technology. I have a whole bunch of big figures here showing that millions of dollars have been spent in a lot of areas.

I am going to take this down to again provide a specific example in my riding because that resonates with members.

The green transformation fund has invested $75 million in my riding. It is putting 6,600 homes or the equivalent into the grid and it is decreasing particulate emissions by 70%. At the same time, it is creating a future for the mills and all the small communities around this particular pulp and paper mill.

We have nothing to apologize for in terms of our focus on research, technology and green infrastructure.

[Business of Supply, February 8th, 2011]

Madam Speaker, that was certainly a lengthy preamble. I had to say “Liberals” so often in my speech because I am absolutely stunned at the Liberal turnaround on this particular issue.

At the end of his comments the member asked if I could perhaps give him an example in my riding. A mill in my riding has been closed for over a year and a half. An agreement has been reached and the sawmill will be reopened. About $25 million will be invested in that sawmill. I can bet it was the corporate tax cuts that made the difference in terms of the decision to reopen a mill in a hard hit place which will employ 125 people and support families with jobs.

[Business of Supply, February 8th, 2011]

Madam Speaker, I appreciate the opportunity to rise and speak against this Liberal motion that would turn back Canada's fragile economic recovery through what the tax and spend Liberals understand best: tax hikes to help pay for more reckless deficit Liberal spending.

In 2007 our Conservative government introduced, and Parliament passed, a bold and broad-based tax relief plan for Canadian job creators. The aims of the low tax plan have been to make Canada more competitive, attract more investment and, more important, more jobs for Canadians. Indeed, over 110,000 Canadian businesses are benefiting from our low tax agenda.

This bold plan had almost immediate results. A short while later an icon of Canadian business returned to Canada, having fled the country due to the punishingly high taxes under the Liberals. In the words of a National Post editorial of the day, “Tim Hortons has announced that it wants to reorganize as a Canadian company”. This is good news.

We take even greater satisfaction in terms of why Tims has returned. Canadian corporate taxes are falling so significantly that Canada has once again become attractive as a site for corporate headquarters and plants. Let us meet at the drive-thru to celebrate with an iced cap and a maple glaze.

Unfortunately, while most Canadians were celebrating the return of Tim Hortons along with other new investments and jobs due to our low tax plan, the self-described tax and spend Liberal leader was finally coming clean on the Liberals' hidden agenda for higher taxes.

First, he admitted that a GST hike was on the table. Second, the Liberals refused to rule out the return of a job-killing carbon tax. Third, in the worst of the global recession, the Liberal leader told a stunned audience of business leaders in hard-hit southwest Ontario that federal taxes must go up, saying “we will have to raise taxes”. Fourth, and most stunning, the Liberal leader announced a massive tax hike on Canadian job creators still trying to deal with a massive global recession.

The litany of Liberal tax hikes does not include other bizarre proposals such as an iPod tax. Clearly the Liberal leader does not believe Canadians are paying enough taxes. He does not believe hard-working families, fixed income seniors and job creating businesses are sending Ottawa enough money to fulfill schemes for massive new big government programs like national daycare, 45-day work years and much more.

Under the Liberal leader, Canadians will have to pay more and more of their hard-earned money to Ottawa to fuel these tax and spend Liberal schemes. What the Liberal leader does not understand is higher taxes, especially on business, kill jobs and economic growth. I am a little amazed that the Liberals do not understand that.

I am even more amazed that the Liberal finance critic, the member for Kings—Hants, does not understand it either, especially considering his own words not so long ago when he said:

—we cannot increase corporate taxes without losing corporate investment. If we lose corporate investment, we have a less productive economy....That means fewer jobs. That means more poverty.

That is the Liberals words about their own plan to hike taxes on job creators.

However, maybe the Liberal leader should talk to other Canadians as well about our low tax plan, especially the private sector businesses that he demonizes, private sector businesses that employ the vast majority of Canadians.

For instance, we all know the difficulties that Canada's forest industry has had over the past few years and the impact that has had on our resource communities. Instead of helping the forest industry, the Liberals want to attack it with a massive and reckless tax hike.

In the words of the Forest Products Association of Canada, “the business tax reductions announced in 2007 are an important part of the industry’s recovery plan for the period ahead”. I have two sawmills in my riding of which one reopened last Monday and one is considering reopening. I am absolutely sure that the challenge of the dollar is one thing and it is the corporate tax cuts that are giving them the confidence. If the Liberals really want to help our forestry sector, maybe they should listen to it and keep its taxes lower instead of trying to hike them.

Maybe the Liberals should go and talk to Canadian small businesses that employ millions of Canadians and serve as the backbone of our economy. Listen to the Canadian Federation of Independent Business, representing the voice of business in Canada, as it speaks out against the Liberal tax hike on job creators, “Businesses don't just plan one or two years ahead. Once something has been put out there, it's usually very poorly received that the rug would be pulled out from under you”.

What about the Canadian Chamber of Commerce, representing 192,000 businesses of all sizes? It said:

--following through on the business tax reduction is critical to moving from government--and Canadian taxpayer-funded--stimulus to a private sector led recovery. The timing of the tax cuts allows a significant fiscal injection into the Canadian economy as fiscal stimulus winds down and the focus turns to the private sector to drive growth. The alternative is an increase in taxes. And raising taxes would be good for neither growth nor employment. [...] If MPs renege on their promise to continue with promised tax decreases, many businesses will be forced to reconsider their plans. Certainty and predictability are of paramount importance to business planning. Businesses across the country have invested for the future with the understanding that Canadian taxes would decline. All Canadians will lose if the jobs and well-being of Canadian families are held hostage by political manoeuvring.

What about the Canadian Manufacturers & Exporters Association, representing an industry hit about the hardest during the global recession? It recently released a study outlining the positive impact of our tax relief for job creators. This study came to some very interesting conclusions.

First, and most importantly, it concluded that the last stages alone of our low tax plan would add almost 100,000 good, high quality jobs to Canada's economy.

Second, it would increase per capita personal income by $880, an increase in income that would sure help a lot of Canadian families coast to coast to coast. I know in my riding it would be an enormous benefit.

The study also looked at the important effects it would have through increased business investment, increased productivity, and more research and development spending, something I had hoped the Liberal Party would agree is important for moving the Canadian economy forward.

I will quote the conclusion of that study. In the words of Jayson Meyers of the Canadian Manufacturers & Exporters:

The numbers show that corporate tax cuts are critical drivers of the Canadian economy. The question is not if we can afford corporate tax cuts; it's can we afford not to--

Or maybe the Liberals could read what the International Monetary Fund had to say about Canada and what is driving our positive economic outlook:

Canada has weathered well the global recession...The [government's] ambitious fiscal consolidation plans include growth-friendly measures to support Canada’s long-run economic potential, notably...cuts in corporate income tax.

If this is not enough for the Liberals, maybe they should listen to their provincial cousins, like Ontario's Liberal finance minister. Dwight Duncan said:

Scrapping... corporate tax cuts would hurt the fragile economic recovery by raising taxes on the struggling forestry and automotive sectors. It is about the most short-sighted, dumb public policy pronouncement one can envision.

Instead of constantly demonizing Canada's job creators, maybe the Liberals should talk to some of the people I have just quoted and realize what they are threatening to do to Canadian jobs and Canadian families with their short-sighted policies.

This is the worst time to raise taxes and kill Canadian jobs. This is the worst time for this Liberal tax hike motion.

[Business of Supply, February 8th, 2011]

Mr. Speaker, there were an awful lot of inaccuracies in that particular speech, but I will focus on the last comments the member made.

She talked about our tax rates compared with the rest of the world's and about the G7. If she really looked at it, we are sitting in middle of the pack in terms of the OECD countries.

I ask her how she can think that our being in the middle of the pack of the OECD countries is competitive how it will actually entice businesses to come here and be job creators in Canada?