Mr. Speaker, I appreciate this opportunity to address Motion No. 585, a rather wholly redundant motion, considering our government has already done the measures this motion calls for and more.
Since we formed government in 2006, we have been squarely focused upon what matters most to Canadians: that is, creating jobs and economic growth. It only makes sense, then, that the drivers of job creation, i.e. small businesses, receive as much tax relief as we can provide to them. After all, small business accounts for 99% of all businesses in Canada and employs half of the working men and women in the private sector.
Our government has cut red tape for business, lowered employee premiums, and cut their taxes so they can create more jobs.
Our record is strong. We cut the small business tax rate to 11% and increased the amount of annual eligible income for this lower rate from $300,000 to $500,000.
Economic action plan 2015 continues to break new ground. To encourage small business growth, we would further reduce the small business tax rate to 9% by 2019. This would be the largest tax decrease for small businesses in more than 25 years. It is estimated that this measure would reduce taxes for small businesses by $2.7 billion over the 2015-16 to 2019-20 period.
However, cutting the small business tax rate is not all we have done. Our government has also increased the lifetime capital gains exemption, a measure that is estimated will deliver $1 billion of federal tax relief annually to small business owners and owners of farm and fishing businesses.
We are also reducing small business EI premiums by introducing the small business job credit. This credit is expected to save small businesses more than $550 million over 2015 and 2016.
As the hon. member should know, manufacturing accounts for more than 10% of our GDP and over 60% of our merchandise exports, and it employs 1.7 million Canadians all across the country. However, as we heard lately, the Liberal leader questions the role of manufacturing in Canada. I will tell members something. Our government does not. For our government, the words “made in Canada” fuel pride.
However, we cannot address the challenges of today with yesterday's thinking, as the opposition would have us do. Our government is giving manufacturers the tools they need to create jobs now. That is why we are proud to extend the accelerated capital cost allowance for machinery and equipment used in manufacturing and processing. This 10-year tax incentive would result in a deferral that is expected to reduce federal taxes for manufacturers by $1.1 billion over the period from 2016-17 to 2019-20, facilitating investment in their businesses today.
We are also launching the automotive supplier innovation program. This investment of $100 million over the next five years would support our auto parts industry as it continues to evolve and establishes a secure role in global supply chains.
We know the production of high-value-added goods and services contributes to enhanced opportunities for Canadians and Canadian businesses, including job creation, economic diversification, and increased trade. Since 2006, our government has invested more than $13 billion in new funding in all facets of the innovation ecosystem, including advanced research, research infrastructure, talent development, and business innovation.
Our government has been hard at work to connect researchers with the funding they need so that they can commercialize their innovations and bring them to market. Our government intends to continue to support the pillars of a knowledge-based economy, as outlined in “Seizing Canada's Moment: Moving Forward in Science, Technology and Innovation 2014”.
This strategy, released in December 2014, highlights our government's commitment to support research excellence in areas of strength and relevance to Canada. It also highlights our government's commitment to the post-secondary education sector, industry, and government institutions through research partnerships focused upon developing talent and advancing innovation in Canada.
To build on this, economic action plan 2015 would provide more than $1.5 billion over five years to advance the renewed science, technology, and innovation strategy's objectives. This includes long-term sustained advanced research support through the Canada Foundation for Innovation and the federal granting councils.
Based upon our contribution, our researchers will be given preferential access to ensure that we remain on the forefront of these scientific endeavours. We are ensuring that our researchers continue to have the leading-edge lab facilities and other resources that they need to be the best in the world.
I must reiterate that over 1.2 million net new jobs have been created by our government since the depths of the recession. This is a fact. It is the best job creation record in the G7. Our government is working hard to get more Canadians working, and as long as there are people looking for work, our job is not done. We are also working hard to ensure that these jobs are quality jobs, and our efforts are showing results. The majority of jobs created are in the private sector. They are full time and they are high-paying.
Our government remains focused on what matters most to Canadians, which is jobs, growth, and long-term prosperity. Our low-tax plan is unlike the plans of the Liberals and the NDP, which are proposing massive tax hikes that would kill jobs. We are committed to keeping taxes low. Not only would these tax hikes kill jobs, but they would also increase the cost of living for middle-class Canadians, which is counter to what the member is proposing.
If the opposition member is really serious about creating jobs, the opposition should start by supporting economic action plan 2015.