Madam Speaker, we are here today to debate Bill C‑30, an act to amend the Income Tax Act regarding the temporary enhancement to the goods and services tax, or GST, credit.
Bill C‑30 is sponsored by the member for University—Rosedale, our Deputy Prime Minister and Minister of Finance. This bill, which is at second reading in the House, would create a new refundable tax credit of $229 for a single person and $459 for a couple, with an extra $114 per dependent child. To be eligible for the full amount, however, people's income must be less than $39,826 in 2021.
If Bill C‑30 goes through quickly, eligible Quebeckers and Canadians may receive that tax credit in October. If not, it will not be available until November or December, which is very late. This measure, which will cost an estimated $2.5 billion, should help 11 million people. It is one tactic in the fight against inflation and the declining purchasing power of families in Quebec and Canada.
We in the Bloc Québécois have no problem supporting Bill C-30, but we wonder if the $39,826 threshold to receive the full benefits is not a bit low. Even with a slightly higher salary, home ownership is not possible in Quebec or anywhere else in Canada.
In the Laurentians, where my riding is located, the average rent for a three-bedroom apartment was $1,834 last spring. That is more than the cost of rent for the same type of apartment on the island of Montreal, and that is the number from six months ago.
Given that the cost of housing has risen twice as fast as the consumer price index, that number has already increased by $250 in only six months. When you do the math, it gets truly frightening. The bottom line is that an income threshold of $39,826 could almost be qualified as stingy.
There is more, however. The rebate decreases by 15 cents for every dollar earned above this threshold. This means that someone who earns $41,357 will not get a penny, even if the difference between the two amounts is quite small. I do understand, however, that 11 million people will benefit. We can assume that a lot of people will fall through the cracks, and that is what concerns me.
The Bloc Québécois will support Bill C‑30, but doubling the GST credit for six months will not magically allow Quebec seniors to get their heads above water.
Even before the surge of inflation, Canada was one of the industrialized countries where retirement income was the lowest compared to employment income for the same person. That number is 50.7% in Canada, compared to 57.6% in the OECD and 63% in Europe. Once we retire, we get half of what we earned when we were working. That is not a lot. It means that our seniors get poorer faster than those in other countries when they leave the workforce. Seniors need more than that to live in dignity. They need more than the $40 a month for six months that the government is currently offering them.
We in the Bloc Québécois have said it before, and we will say it again: We need keystone measures that are well thought out and properly targeted.
The first order of business would be to stop cutting the guaranteed income supplement payments of low-income seniors who received the Canada emergency response benefit or the Canada recovery benefit last year.
The second order of business would be to increase old age security by $110 a month, as soon as people reach 65 years of age. This is a measure the Bloc Québécois has been defending tooth and nail for the last two years.
Again, the Bloc Québécois will support Bill C‑30, but I remind members that our party already asked for this measure six months ago in its budget expectations. It is nothing new and it did not just pop out of the heads of the Liberals. We helped inspire it. Six months is a long time when you do not know how you will make it to the end of the month or even the end of the week. Six months is a long time for the most vulnerable people and those who are in a financially precarious position. It is even worse if the refund is paid in December or October, as I said before.
Back home, singer-songwriter Dédé Fortin, who passed away unfortunately, summed it up best in his song The Answering Machine:Yesterday, I met a poor man
He lives on the street, doesn't own a thing
He told me something that I thought was really funny
Life is short, but it can be long at times
Let us think about that.
My colleagues opposite will say that inflation is dropping, that it was 8% in July and 7% in August. That is true, but the drop is due entirely to the price of gas, which fell 18.8% after reaching an all-time high in June. Everyone knows that Ottawa does not have a say in world oil prices, which are essentially set by the London and New York exchanges.
If we exclude gas, all other indices are rising, period. Baked goods have increased by 15.6%; fresh fruit, 13.2%; children's school supplies, 20%; housing, 15%; and the list goes on. These figures are from Statistics Canada, not me. In short, the Liberals can hardly be proud of and boast about this situation.
Increasing the GST credit is a good measure, but it is largely insufficient to make up for all the cost increases caused by the current surge in inflation. Right now, 41% of Quebeckers cannot make ends meet. I think it is urgent that the government step in in other areas to support them.
I would be remiss if I did not make the connection between the current relief measures and the situation of workers across the country. By country, I mean Quebec. Sadly, yesterday saw a return to the prepandemic EI system. Ottawa could have extended the measures it put in place during the pandemic. Ottawa could have delivered on its 2015 promise to reform EI. Ottawa did neither of those things. Now, six out of 10 workers are ineligible for benefits as of yesterday.
This is a government that gives with one hand and takes back with the other. How shameful. As Bloc Québécois members have said repeatedly, Ottawa has to deliver on its promise and completely overhaul the EI system. That would be, in my view, a truly meaningful measure, the kind we in the Bloc Québécois like to see. It would counter the negative impacts of the increased cost of living that is putting untenable pressure on Quebec workers. It would be far more effective than a $225 cheque. We in the Bloc Québécois hope that the government can understand that.