Mr. Speaker, I am going to be splitting my time with my learned colleague from Elmwood—Transcona.
I am pleased to address this motion raised by my Liberal colleague across the way. I want to focus my time on the subject of tax relief and other support for small businesses. I do so because long before our government introduced the small business job credit, we continually acted to leave more money in the pockets of our nation's businesses and with the Canadians who work for them.
As the member opposite is aware, our government has introduced 180 tax relief measures to keep our economy strong and growing. We have been committed to using Canadians' tax dollars in the most prudent and effective way possible. Let us talk about broad-based tax relief for a moment.
This responsible and disciplined use of taxpayers' hard-earned dollars is expected to get us back to a balanced budget in 2015. That is a remarkable achievement, given what we were confronted with just a few short years ago. Perhaps the only person in Canada who would disagree with that would be the leader of the Liberal Party. He criticized our action to balance the budget because, according to him, a balanced budget happens all by itself. That is some business sense.
Thankfully, our government understands the importance of sound economic management. As most members know, when disaster struck the world economy, we took immediate and precise action. In the middle of the world's worst global recession since the Great Depression, we introduced the economic action plan to protect Canadian business and protect Canadian jobs. In fact, even before the global crisis, our government was focused directly on the economic fundamentals, in particular on paying down debt and delivering broad-based tax relief to Canadian job creators and families alike.
As a result of our low-tax plan, the average family of four is saving about $3,400 a year in taxes in the year 2014. We also cut the GST from 7% to 5%. We introduced the tax-free savings account to allow Canadians to save, tax-free. Since then, more than 10 million Canadians have opened a tax-free savings account. We have cut taxes in every way that the government collects them: personal taxes, consumption taxes, excise taxes, and business taxes.
I want to focus on small business tax relief now.
Allow me to highlight a key driver of growth in our economy: Canada's small businesses.
Let us be clear. The small business job credit is fantastic news for the small businesses right across this country. Our small business job credit will lower EI payroll taxes by 15% and save small businesses over $550 million. In addition, we have made certain that beginning in 2017, premiums will be set according to a seven-year break-even rate, ensuring that premiums are no higher ever than they need to be.
Unfortunately, the Liberal Party's EI proposal, which is full of bad math and encourages business to lay off workers, again demonstrates that the Liberal leader has yet to understand small business.
However, let me quote someone who does understand small business. Jay Myers, from the Canadian Manufacturers & Exporters, said, “The Small Business Job Credit will help a powerhouse — the thousands of small businesses — of the Canadian economy become more competitive”. He makes a good point.
On important matters such as these, I would kindly encourage the members of the Liberal Party to listen to experienced business professionals rather than their less experienced leader.
Small businesses are an absolutely vital component of job creation, and we are committed to supporting them. That is why we introduced the small business job credit in the first place, but it is just the latest step in a long line of actions by our government.
Indeed, support for small business has been and continues to be a critical pillar of our economic action plan. We reduced the small-business tax rate to 11% and increased the amount of income eligible for this lower rate to $500,000 from $300,000. As a result, we have lowered the tax bill for small businesses with $500,000 of taxable income by over $28,000. That is a 34% decrease in their taxes, and they appreciate it.
We also increased the lifetime capital gains exemption to $800,000 in 2014 and indexed the new limit to inflation going forward. By doing so, we are increasing the potential rewards of investing in small business and making it easier for owners of small businesses to transfer their family business to their next generation.
Our government has also reduced the red tape burden for small and medium-sized businesses to help them navigate the tax system. They now face fewer regulations, and the cost of red tape has been reduced by nearly $20 million annually.
We have also committed to enshrining a one-for-one rule into law. For every new regulation added that imposes a burden on businesses, one must be eliminated. It is one for one.
Though we have lowered taxes, they still continue to absorb dollars that would otherwise be used by business owners to seize opportunities for growth and create jobs. Accordingly, and as indicated in our economic action plan 2014, further tax relief for small businesses will be a priority for our government following the return to balanced budgets in 2015.
These steps are just a few of the many ways our Conservative government has demonstrated its commitment to the Canadian economy and to small business in particular. The result of that commitment is clear. I think everyone in the House will agree—even those across the way, should they choose to admit it—that the results we have obtained are somewhat remarkable.
Few countries in the world have emerged from the global economic crisis as strong and as resilient as Canada, led by our Conservative government. Indeed, the Canadian economy continues to be envied all around the world. After eight consecutive years of making the right economic choices, Canada remains strong and will be stronger going forward. As the small business job credit makes clear, we are not done yet.
Small and medium-sized businesses are crucial to Canada's long-term prosperity. Canadians depend on the jobs that they create and the services they provide. Our government supports these businesses and Canadians by keeping taxes low and cutting red tape. Indeed, we have received international recognition for our world-class business tax system. Together with our government's commitment to return to a balanced budget in 2015, these measures will further strengthen Canada's business climate and economy.
By laying a solid foundation for jobs and growth through tax relief, our government is helping to ensure that our country is well positioned to face future challenges and that all Canadians have the opportunity to fully participate and share in a strong and prosperous Canada.