Madam Speaker, I would first like to say that when the economy is working for the middle class, the country is working for all Canadians.
Since our government came to power, we have tried to restore the confidence and optimism of Canada’s middle class and help people seeking to join it. That is the case in Rivière-des-Mille-Îles and it is the case everywhere in Canada, and we continue to be determined to do even more.
One of the first things done by our government was to reduce taxes for the middle class. We have reduced the federal income tax rate to 20.5% from 22%, for 2016 and the years after that. This tax reduction is already benefiting nearly nine million Canadians. Individuals without spouses who benefit from this will see their tax burden lightened by an average of $330 each year, and couples who benefit will have their burden lightened by an average of $540 each year. That means that these people will have more money in their pockets, and that will result in a stronger middle class.
To help finance this tax reduction for the middle class, the government raised taxes for the wealthiest Canadians by introducing a new personal income tax rate of 33% for individuals with taxable income in excess of $200,000 per year.
Our government then implemented one of the most important social policy innovations in a generation: the new Canada child benefit, which is helping 10,300 families, with 18,870 children, in my riding. The benefit means that nine out of 10 families with children are receiving more money each month that they can spend on things ranging from school supplies to sports equipment
The families this measure helps have seen their child benefits rise by nearly $2,300 per year, for the 2016-2017 benefits. For myself, my constituents in Rivière-des-Mille-Îles receive about $530 per month. Some of the constituents I meet tell me how important the Canada child benefit is for them and for their children’s welfare.
Our government is also taking important steps to ensure that young Canadians today will be able to enjoy a more secure and dignified retirement in the future. Only last week, we completed the final stage in the implementation of improvements to the Canada pension plan. This set of measures will help to strengthen the middle class and move middle-class Canadians forward.
I would now like to address the issue raised by today's motion, which is ensuring the fairness of Canada's tax system. The underground economy, tax evasion, and aggressive tax planning stand in the way of tax fairness, and too often it is hard-working middle-class Canadians who foot the bill for the selfishness of individuals and businesses looking to gain an unfair advantage.
Let us be clear: that is totally unacceptable. That is why our government continues to take action to tackle tax evasion and combat aggressive tax avoidance. As part of its strategy to counter these practices, the government provides the Canada Revenue Agency with sufficient resources to implement and enforce tax laws.
For example, the 2016 budget included a commitment of $444.4 million to allow the Canada Revenue Agency to do even more to crack down on tax evasion and combat tax avoidance using various measures. These measures include hiring additional auditors and specialists, developing solid business intelligence infrastructure, intensifying audit activities, and improving the quality of investigative activities that target cases of criminal tax evasion.
The 2016 budget also allocated $351 million over five years to the Canada Revenue Agency to help increase its ability to recover outstanding tax debts, which will facilitate the collection of $7.4 billion in taxes payable to the government and to Canadians.
Furthermore, Canada's tax system requires constant adjustments in order to function as intended and help us achieve an economy that serves all of the people. That is why Canada is actively involved in coordinated multilateral activities at the international level to combat base erosion and profit shifting, namely international tax planning mechanisms used by multinationals to inappropriately reduce their taxes to a minimum.
In Canada, we are working to block the ability of wealthy individuals to use private companies to inappropriately reduce or defer their taxes. To address this concern, the 2016 budget contained measures to prevent business owners from taking advantage of the $500,000 small business deduction more than once by using complex corporate and partnership structures, and to eliminate loopholes that allow private companies to use a life insurance policy to distribute amounts tax-free which would otherwise be taxable.
The measures that I have mentioned today are by no means exhaustive. Nevertheless, they do provide a good indication of the attention the government is giving to combatting tax evasion and avoidance. Measures targeting people who engage in tax evasion are about fairness. By working to prevent tax evasion and eliminate tax loopholes, we will improve the integrity of the tax system and contribute to the sustainability of public finances at home and abroad.
I am firmly convinced that our plan is the one needed to enhance the integrity of the Canadian tax system.