David Graham

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, I am not worried about job losses. I am proud of increasing pensions for the future.

Planning for the future is an important strategy. It goes hand-in-hand with the enhancement of the guaranteed income supplement. It is part of a larger plan to improve the situation of seniors. If we did not make those plans 50 years ago, where would we be today?

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, I will be sharing my time with my colleague from Newmarket—Aurora.

The average age in my riding, Laurentides—Labelle, is among the highest in the country. According to the 2011 census, the average age was 49.5. It will surely be more than 50 according to the 2016 census. In some communities, homes are listed at less than $40,000 and are not even selling at that price. Young people are leaving the region in droves and seniors are only staying in retirement. We have many challenges and we welcome many changes for seniors. As a government and as a party, we like to plan for the long term and not just for tomorrow.

Therefore, I am very pleased to speak to Bill C-26, an act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act. There are several reasons for that.

This bill is the promise of a better future. It also reflects the government's commitment to help Canadians achieve their dream of a more secure retirement. This is a long-term project. It is a project for the future and for young people who are currently preparing to enter the labour force. This next generation will also be assured of a dignified retirement. We are acting for a future that goes beyond any election cycle to help those who will come after us.

We are building on what was accomplished by the decision-makers of the 1960s who created the Canada pension plan, enhanced old age security by creating the guaranteed income supplement, and implemented measures that, in the long-term, would significantly reduce poverty among seniors. What is more, we are here in a true spirit of federalism because the agreement to enhance the Canada pension plan or CPP comes from a real spirit of co-operation with the provinces, who approved the approach.

Is the enhancement of the CPP necessary? Absolutely. It is essential, and I will explain why.

Middle-class Canadians work hard, but they still do not feel as though they are making any progress. One in four families who are approaching the age of retirement may not be able to save enough money to maintain their current lifestyle when they retire. That represents 1.1 million families. We had to take action.

We also have to accept the fact that fewer and fewer companies are offering defined benefit pension plans and that fewer Canadians have such a plan. It is a major challenge for Canadian families and it is time we dealt with this.

The agreement we reached with the provinces will increase the retirement income of Canadians who are in this difficult situation, and also promote economic growth and create jobs.

How will the CPP expansion work? There are two key things to keep in mind.

First, the CPP currently replaces a quarter of Canadians’ average annual earnings. The new CPP will replace a third. Future retirees will therefore have more money in their pockets. Take Mila for example. She is a mother who has earned on average $50,000 a year during her working life. Under the current plan, she will get $12,000 when she retires. Under the new plan, Mila could get a little more than $16,000.

Second, the maximum level of pensionable earnings will go up 14% by 2025. That means the maximum annual CPP benefit, which is currently $13,110, would go up to $20,000 in today's dollars. Under the enhanced CPP, the maximum benefit will go up by almost 50%. It is clear that these changes to the CPP will make life better for retired Canadian workers and will help them achieve their goal of a strong, secure, and stable retirement.

How much will this cost? For most Canadians, the contribution rate will rise by just 1%. Take Kevin, for example, who earns about $55,000. His contributions will increase by $6 per month in 2019. Once the progressive implementation is complete in 2025, Kevin's contribution will have gone up by about $43 per month. That minor increase will be largely offset by his higher retirement income. With the enhancement, Kevin will collect approximately $17,500 per year in today's dollars in CPP benefits, which is about $4,400 more than under the current plan.

I should also mention that contributions to the enhanced portion of the CPP for wage earners like Kevin will be tax deductible and that a tax credit will continue to apply to employees' current CPP contributions.

We can therefore proudly say that Canadians will have more money in retirement thanks to the new CPP. Furthermore, the budgets of low-income workers will not be affected, because the working income tax benefit will also be increased to offset the premium increases.

I would like to add that our government has decided to give everyone time to prepare for the new provisions. The changes will be implemented gradually over seven years, from 2019 to 2025. This is the responsible way to go, to make sure that businesses and workers have time to adapt.

We are taking into account the problems that exist at the provincial and national levels. We have engaged with each province to discuss their particular situation, and we will continue to do so. We took steps to ensure that we could implement these measures in a way that will not hurt businesses, because we want the owners of businesses of all sizes to be assured that the government will implement these changes to CPP without harming the functioning of the Canadian economy.

As I said in my introduction, the government is creating a better future for Canadians, especially the middle class. This will have a much broader impact on all Canadians, because it is important to have a long-term vision. Higher CPP benefits will lead to greater domestic demand, which will stimulate the Canadian economy. Since savings will grow, more money will be available for investment, also thanks to the new CPP.

As a result, we expect the gross domestic product to increase by 0.05% to 0.09%, which represents approximately 6,000 to 11,000 new jobs. Quite simply, an enhanced CPP means more savings and a better retirement.

Middle-class Canadians will then be able to focus on what matters most, such as spending quality time with their family and friends, rather than worrying about not being able to make ends meet. It is important that we plan for the future.

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, I appreciate the member's speech and her support for this bill. I agree there is always more that can be done, and I would like to give her this opportunity to tell us the following. In a perfect world, what would the perfect policy for seniors look like?

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, I could not help but notice that during the member for Sherwood Park—Fort Saskatchewan's patrician lecture on virtue, he seemed to believe that people who did not have the income to put money aside had something to be ashamed of, that people who did not have the revenue to take advantage of the voluntary deferred revenue programs such as RRSPs or TFSAs lacked virtue, that to have virtue one required at least some wealth, and that those who did not have any disposable income should be judged by how they spent that same disposable income.

I am happy the member has never had to choose between his housing and his retirement, between his food and his medication, between his education and his immediate need for income. Those problems may not be his reality, but I can assure him that this represents the daily life of many virtuous Canadians.

Could the member for Sherwood Park—Fort Saskatchewan confirm that he believes that someone who simply does not have the revenue to put money aside has no virtue?

[Tax Avoidance, October 21st, 2016]

Madam Speaker, I am pleased to provide an update on what Canada has been doing with respect to tax fairness. This is certainly one of our government's most significant responsibilities, and Canadians legitimately expect us to take effective action on this file.

The government did not wait long to act. In December 2015, it introduced a tax cut to benefit the middle class by reducing the tax rate for the second personal income tax bracket. On average, for a single person, that amounts to $330 per year, and for a couple, $540. Close to nine million Canadians have already begun to benefit from that tax cut.

Canadians have every right to expect everyone to pay their fair share of tax. That is why the tax rate for the wealthiest Canadians, those earning more than $200,000 in taxable income per year, went up. People are worried about sneaky individuals who know how to work the system slipping through the cracks. The Canadian government began tackling this problem head-on well before the Panama papers revelations by including measures to combat tax evasion and tax avoidance in its 2016 budget.

In total, $444.4 million will be allocated to the Canada Revenue Agency over the next five years to operate more effectively. In other words, CRA is hiring 100 specialized auditors who will oversee large, high-risk multinationals. CRA will have the financial means to conduct its investigations and we think it will be able to recover $500 million in five years from multinationals alone.

What is more, within five years there will be five times as many audits of Canadian taxpayers considered to be high risk. Nearly 3,000 audits will be done, potentially putting $432 million back into government coffers.

Tax fairness is also about going further and dealing with those who abuse the system. A team of 24 auditors will be specifically assigned to go after those who come up with tax schemes and promote them to taxpayers to help them get out of paying the taxes they legitimately owe.

Every year, 200 files will be reviewed, which is 10 times the number currently being reviewed. This team will be able to conduct audits, charge fines, and request criminal investigations if deemed necessary. With the help of its legal team, it will ensure that these types of cases go before the courts quickly.

Canada has taken serious action to ensure greater tax fairness, because it is important that all Canadians contribute equitably. That is why budget 2016 invests an additional $351.6 million over five years to recover unpaid taxes.

Making sure that all Canadians pay their fair share of taxes will give the government the tax base it needs to implement initiatives like the Canada child benefit, the most significant family policy innovation in a generation.

A family could receive up to $6,400 per child under the age of six, and up to $5,400 per child aged six through 17. Canadian families will see an average increase in benefits of about $2,300 in 2016-17. Nine out of ten families with children will receive more money than before.

These families, like all Canadians, are working hard to improve their standard of living. They need to know that the government will not let people trying to dodge their tax obligations get away with it.

Canada is going even further and fighting against tax evasion by working with its partners abroad to improve international fiscal transparency. In fact, Canada is one of over 100 jurisdictions that have committed to implementing the common reporting standard for automatic exchange of information on financial accounts held by non-residents.

Budget 2016 confirmed the Government of Canada's intention to implement the common reporting standard starting on July 1, 2017, which means the exchange of information can begin as early as 2018.

To this end, on April 15, 2016, our government released legislative proposals regarding the implementation of that standard for consultation purposes. The information received will help improve Canada's ability to detect and address cases of tax evasion, ensure tax compliance, and protect the integrity of Canada's tax system.

This is a clear and firm commitment by Canada to fight tax evasion, and it sends a clear message to Canadians that the government is determined to ensure that we have a fair and equitable tax system.

Canada is also working with its partners at the Organisation for Economic Co-operation and Development, the OECD, and the G20, on the base erosion and profit shifting project simply known as the BEPS project. BEPS refers to the tax planning arrangements undertaken by multinational enterprises that, though often legal, exploit the interaction between domestic and international tax rules to reduce their taxes.

Members of the OECD and the G20 have developed regulations to ensure that the profits of these companies are taxed where the economic activities take place and where the value is created.

As part of its efforts to protect the integrity of Canada's tax base, the government announced in budget 2016 that it would implement certain recommendations of the BEPS project. For instance we are going to introduce country-by-country reporting for large multinational corporations. This tool will allow the Canada Revenue Agency to have a global view of the activities of these corporations in each jurisdiction where they operate.

For example, in the country-by-country report, the large multinationals will have to indicate the global allocation, by country, of certain key variables such as consolidated revenue, tax paid or due, the number of employees, and tangible assets.

By providing a high-level overview of the global operations of large multinationals, the country-by-country report will increase transparency and help the Canada Revenue Agency conduct effective risk assessments.

In short, we have put in place a plan to fight tax evasion and tax avoidance that goes far beyond the objectives of the motion being debated today. It is a detailed and ambitious plan.

I can assure the House that the government is determined to continue down this road.

[Laurentides—Labelle, October 21st, 2016]

Madam Speaker, for the past year now, I have had the honour of being the member for Laurentides—Labelle.

Our region is full of magnificent landscapes, and has no shortage of events and tourist attractions on offer. It spans nearly 20,000 square kilometres, or 40 times the size of the Island of Montreal.

Our ski hills, nine regional and provincial parks, six controlled hunting zones, two wildlife reserves and 43 outfitters, and the thousands of lakes and rivers and thousands of kilometres of trails for biking, hiking, cross-country skiing, snowshoeing, and snowmobiling — this is what we are known for.

First and foremost, the success of our region comes from our warm, welcoming communities and the service and enthusiasm of our tourism workers and managers.

In the context of Small Business Week and as the beautiful summer and fall seasons come to a close, I want to tip my hat to all those who keep the tourism industry alive in our region, which Father Labelle referred to as the Switzerland of Canada.

[Salaries Act, October 19th, 2016]

Mr. Speaker, as I said earlier, I believe equality among the cabinet members is very important. These are all people with the responsibility to run our country effectively. Having them be equal at the table is important to that function.

[Salaries Act, October 19th, 2016]

Mr. Speaker, I think parliamentary secretaries serve a different role than adjunct ministers. It is a very important role in managing the business of the department here in the chamber. That is why we see parliamentary secretaries at the late show and why we see them in a lot of different tasks. It is not a decision-making role.

[Salaries Act, October 19th, 2016]

Mr. Speaker, I do not think my tongue particularly slipped. If multiple ministers work together to accomplish a greater task, I do not see a problem with that.

[Salaries Act, October 19th, 2016]

Mr. Speaker, obviously, there is a world of difference between our opinions.

The major difference between the Conservatives and the Liberals is that we trust public services to do their job. We have a minister responsible for the major issue of economic development and public servants do their job under government leadership.