Jim Flaherty

[Taxation, October 20th, 2011]

Mr. Speaker, as I said a moment ago to the member opposite, it is the right of Canada to impose tax obligations on our citizens. It is the right of the United States to do the same thing. These are people who are American citizens and they choose to maintain their American citizenship. If they do that, they are subject to some rules.

The difficulty is, as the member has mentioned, many of these individuals have not lived in the United States, have not filed in the United States, have not earned any income in the United States, and were unaware of their obligation. It is for those people that we are trying to get some co-operation, leniency quite frankly, with respect to penalties from the American authorities. As I said a moment ago, we are making some progress.

[Taxation, October 20th, 2011]

Mr. Speaker, it is the sovereign right of the U.S. government to impose tax rules on American citizens. This is a question where it is unfair to some with dual citizenship because they have had no income earned in the United States for a long time, many of whom were unaware of their obligation to file tax returns in the United States, and there are some penalties that can be attached.

We have had discussions with the American treasury authorities. We have heard already from the American ambassador in Canada on the subject and from the treasury in the United States to the effect that they are looking at being more reasonable with respect to the punitive penalties that are possible by the IRS under the legislation. We see some progress there.

[The Economy, October 20th, 2011]

Mr. Speaker, would the NDP please explain to the Canadian people why it voted against the working income tax benefit to help people get off social assistance and get jobs in this country?

This is a very important social reform in our budget that the NDP voted against. It is a reform that is looked upon by experts across this country as the most important initiative that has been taken in Canada to help people get off welfare and social assistance, and get jobs to support their families.

The NDP members come here and rail against corporations. They do not care about the poor people in this country. When we actually bring something to this House, they vote against it.

[The Economy, October 20th, 2011]

Mr. Speaker, unlike the NDP opposition, we believe the best social program is a job. Canadian families want jobs, not higher taxes that kill jobs, like the $10 billion tax increase that was in the NDP platform in the last election.

We have created about 650,000 net new jobs in Canada since the end of the recession, 90% being full-time jobs and almost 80% in the private sector. Those jobs support employment in our country which supports the quality of life of Canadian families.

[Canada-U.S. Relations, October 19th, 2011]

Mr. Speaker, FACTA has far reaching implications as it would require Canadian banks to collect a great deal of information and at a very substantial expense. I have reviewed this with all of our Canadian banks. I have also raised it with the secretary of the treasury and my officials continue to discuss it with them. We are hopeful that we will be able to arrive at an arrangement with the Americans that would not require this needless expense.

[Taxation, October 19th, 2011]

Mr. Speaker, as the member opposite knows or should know, Canada is relatively well off. We have the best debt to GDP number in the G7. We have the best employment job creation record in the G7.

Forbes magazine, The Economist and the IMF say that Canada is the best place to invest in the world in the next five years. These are all matters with which Canadians can be proud. We have to be cautious. It is a fragile economic recovery globally and we are working hard to resolve the crisis in Europe. However, having said that, Canada is relatively well off.

[Taxation, October 19th, 2011]

Mr. Speaker, I know that the NDP's solution to all of this is a new $10 billion tax, which it put forward to the Canadian people during the last election and which was resoundingly rejected.

What the Canadian people and Canadian families need is tax relief. They can pay less tax and they need jobs, so we are creating jobs as well. I hope the member opposite will vote for the hiring credit for new hires that is in the bill before the House, the second budget bill.

[Taxation, October 19th, 2011]

Mr. Speaker, why is the official opposition continually voting against every tax measure we bring into the House to help families in Canada and to help those who are on social assistance and who want to work? It was the party opposite that voted against the working income tax benefit, which is probably the most important social reform since the RRSP, but the NDP members voted against it.

[Taxation, October 19th, 2011]

Mr. Speaker, we have made substantial tax reductions for Canadian families, a total, for a typical Canadian family, of about $3,000 a year. We have cut taxes in every way that the government collects them. We have increased the amount Canadians can earn tax free. We have fewer Canadians now paying any federal tax all. As well, there have been the creation of 650,000 net new jobs since the end of the recession.

[Taxation, September 29th, 2011]

Mr. Speaker, we have made it clear to the American authorities that Canada of course is not a tax haven, that the request for information from American citizens who are living in Canada affects a large number of citizens who have never earned income in the United States and many of whom were not aware of their obligation under American law, which is their right to file income tax returns.

We have asked the Americans to exercise some discretion in the IRS with respect to these demands.