Mr. Speaker, I am pleased to rise in the House today to speak to budget 2015 and Bill C-59, an act that would implement various measures contained within the budget. The budget contains many measures that I know Canadians are looking forward to seeing put in place.
Before I go on, I should inform the House that I plan to split my time with my hon. colleague from Dauphin—Swan River—Marquette.
I would like to congratulate the Minister of Finance on his first budget and, especially, for all of the hard work that he has put into it. It has long been my view that governments should spend when spending is necessary and save taxpayers' money when saving is possible. This budget controls spending within a balanced budget and provides important tax breaks and cost-saving measures for taxpayers. For this, I congratulate the minister on his very important work.
I would like to acknowledge the work that was carried out by the previous minister of finance, my good friend, Mr. Jim Flaherty. Mr. Flaherty paved the way for this budget during his time as the minister of finance. He oversaw important stimulus funding during the recession and reeled in spending following the recession. His success as minister of finance has allowed Canada to be in the strong economic position that it is in today.
In terms of the budget itself, I am pleased to see that it is balanced. A balanced budget allows governments to cut taxes and pay down debt. It should be noted that before the 2008 recession, this government had already paid down $37 billion of federal debt. This has allowed Canada to emerge from the recession as a global economic leader with the lowest net debt to GDP ratio in the G7.
Canadians expect the government to work within its means, as they have to. That is why having this balanced budget is so important. The budget is balanced while at the same time maintaining record transfers to the provinces for health and education, and keeping the overall federal tax burden at its lowest level in more than 50 years.
This is no easy feat, but maintaining balanced budgets when possible is what is expected of any government. That is why I am pleased to see that the government has introduced legislation to ensure that all future budgets, except during times of recession, are balanced.
I recently hosted a community teleforum for residents in my riding of Bruce—Grey—Owen Sound, which allowed constituents to vote on several poll questions and call in to express support for or concern about actions of the government. There were several callers who expressed their appreciation that the government had balanced the books. Furthermore, I asked participants to vote on a poll question related to the new balanced budget legislation. The result was an immense amount of support for this legislation.
Having discussed the efforts that the government has taken to balance the budget, I would now like to highlight several measures contained within this implementation act that would greatly benefit residents of Bruce—Grey—Owen Sound and, indeed, all Canadians.
The first measure is the reduction in the small business tax rate from 11% to 9% by the year 2019. This measure will affect 100% of the small businesses in my riding of Bruce—Grey—Owen Sound and will support the local economies of the many small communities in the area. It is estimated that this measure will reduce taxes for small businesses by $2.7 billion over the 2015-16 to 2019-20 fiscal years. This is an extremely positive measure that is very widely supported.
Another measure that I am supportive of is the increase in the lifetime capital gains exemption from $800,000 to $1 million for owners of farms and fishing businesses. Several farmers in my riding over the past couple of years have expressed support for this measure and we are very happy to see that it is in there. They realize that it will keep more money in the pockets of farmers who are trying to pass on their farms to the next generation. Without this, when they transfer capital, it will otherwise be lost in taxes. This is a huge benefit. In all my work and time on the agriculture committee, and the minister was there today, we are always looking at different ways that allow young farmers to get into the business, and this is a big one.
The lifetime capital gains exemption was increased in budget 2007 from $500,000 to $750,000, and then increased in 2013 to $800,000 and now up to $1 million. That is double over the course of those years. Since 2007, it has been more than doubled, and that is great news for all farmers.
Furthermore, increasing the tax-free savings account annual contribution limit to $10,000 is a very positive measure for many residents in Bruce—Grey—Owen Sound. I have already had several constituents contact me asking when they can begin investing more in their TFSAs. I have been pleased to inform them that this measure is effective for the 2015 taxation year. Despite what some people have said about this measure, the TFSA helps many seniors and low and middle-income Canadians save their money. In fact, more than half of tax-free savings account holders earn less than $42,000 per year, and nearly 700,000 seniors who earn less than $22,000 have a TFSA. Therefore, this measure supports a wide range of Canadians.
Along with the TFSA, seniors rely on their registered retirement income funds, or RRIFs as they are commonly known. Many seniors welcomed the announcement that budget 2015 would reduce the minimum withdrawal factors for their RRIFs. Currently, seniors are required to withdraw 7.38% of their RRIFs in the year they turn 71. Although I cannot remember the year, we actually raised that age from 69 to 71. The percentage then increases each year until age 94, when it is capped at 20%.
The new RRIF factors would range from 5.28% at age 71 to 18.79% at age 94. This would allow seniors to have greater flexibility when drawing on their retirement savings and it would also reduce their risk of outliving their savings. It is important to point out that seniors raised that money during their working years, and we have enabled them to use it to enhance their retirement, but more on their terms versus the government's.
Finally, the bill would also implement several important measures to support our veterans and their families. This would be done by providing a new retirement income security benefit to moderately to severely disabled veterans, expanding access to the permanent impairment allowance for disabled veterans, and creating a new tax-free family caregiver relief benefit to recognize caregivers of veterans. These important measures would ensure that our brave men and women would have the support they need and most certainly deserve.
In conclusion, I would like to highlight the success of this and previous budgets since 2006.
Since 2006, a typical two-earner Canadian family of four will receive tax relief and increased benefits of up to $6,600. This is due to the fact that the government has consistently been lowering taxes and introducing support measures. I believe we are up to around 140 different taxes that this government has cut. I stand to be corrected on that number, but I believe I am pretty close. That is a lot.
When we hear from constituents, some will say that a certain tax cut does not benefit them. One thing I remind constituents is that not every tax cut benefits every Canadian. For example, seniors will not benefit from what we have done for families with young children, the same way young people will not benefit from things put in place for seniors. Overall, every Canadian will benefit from at least one of our cuts.