Mr. Speaker, it is my pleasure to rise today at report stage and speak to Bill C-15, the budget implementation act.
I would like to first of all talk about the context of the budget in terms of it going forward, where we have been, and where we are today, because it is very revealing. In fact, it is very disconcerting and discouraging for Canadians in many ways, particularly small businesses. It is outright disconnected, and the disconnect is happening because the Liberal government feels it has the right to spend whenever it wants, wherever it wants.
Let us go back to what this budget includes, and probably equally as important, what it does not include.
It includes excessive spending: $150 billion over the mandate of the government. Although promised during the election campaign, and I will talk about broken promises as another adjunct to my speech today, the broken promise of modest deficits of $10 billion a year and $25 billion over three years was, of course, thrown out the window. That was thrown out along with the fiscal anchors of trying to bring the budget back to balance so that Canadians can have the strong secure future they are looking for financially. The only fiscal anchor that the finance minister continues to hang his hat on is the debt-to-GDP ratio. However, in many ways it is questionable as to how that will happen because of the way the economy works, which has yet to be seen.
That said, what this budget does not include, and what is probably one of the most significant parts in my mind, is the broken promise to small business in this country. Every member across the way on the Liberal benches mentioned it during the election campaign. They mentioned it when they were in front of debate groups, such as the groups I am very familiar with, the leaders within the home building industry. Most communities have a home builders association. The Liberals sat beside their competitors in the election and were asked what their stance was with respect to small businesses. Most of these companies and individuals in the room would have been small entrepreneurs who were made a promise. The promise made by all parties was that everyone would follow through and reduce the small business taxation rate to 9% from what we had laid out: first 10.5%, and then down to 9%. What this budget does not include is that reduction in taxation for small business.
Who are small businesses? They are people who are represented by groups such as home builders, but also groups such as the CFIB. What was incredibly telling was the discussion at committee with the finance minister. He was questioned about whether he had met with Dan Kelly, the president of the largest group of entrepreneurs and small business people in this country, the Canadian Federation of Independent Business, who had reached out to the finance minister. Dan Kelly said that he would like to bring forward the concerns and thoughts of the small business people through that large network of organizations and thousands of members. The Liberals claimed over and over again that in the huge consultations that went across this country that they covered all of their bases and did everything. However, for some reason, the finance minister specifically missed meeting with one of the most important leaders of the small business community prior to bringing in this budget. That is hugely telling about what their priorities really are.
Small businesses were thinking that when they went to the debates during the election campaign that they could go back and do some planning with respect to their business, because all parties, no matter which party was elected, was going to take the tax rate down to 9%. Without that tax reduction, they will now have to reduce the planning of expansion and investment within their company. These are the people who employ 80% of Canadians. It is that important. They are the entrepreneurs, business creators, and small and medium-sized businesses in all of our communities right across this country. That, along with the dropping of the incentive to hire new employees, the new hiring credit for new employees as well, is a double whammy to small business. That is what is not in the budget, just so people know.
By the way, many of the people who own small businesses in this country are middle-class individuals. They are not rich. Their incomes, on average, are not at the six-figure level. They survive, in many circumstances, on very small margins.
I want to highlight that point today specifically, because what we continue to hear is a very weak argument from the finance minister and the present government. We continue to hear, “Listen, here's how we're helping small business. We're giving the family tax credit. That means that individuals will be able to spend more with small businesses.”
What a disconnect that is. That is such a weak argument that the finance minister makes over and over again. I think the average is less than $10 a week from the family tax credit that is going to the average family in this country, and that is going to have some huge ability to stimulate small business. That is not the case. It is absolutely a false assumption. It is one that is frankly looked upon by the commentators as one of the weakest arguments, lacking in credibility, that any budget has ever seen.
I would like to go on to talk, not only about the breaking of promises, especially to small communities, but also what the future probably holds from the indications from the government. The future for small business holds this. It has increases in small business taxation through CPP. That is going to happen. Canada pension plan payroll taxes are going to increase for small businesses, all businesses, across this country. That is not only for the businesses, their owners, and the people who provide the jobs, the job creators, but also for the people who work within those small businesses, who are going to be taxed at another level.
What is the prospect for the entrepreneurs, the job creators, in this country? They are going to pay more taxes. They are going to pay more taxes because of the spending of the present government, which has broken the promise to hold to what it said to Canadians would be a modest deficit.
Let me talk a bit about another argument that has emerged over and over again through the discussions at committee and here in this House on this issue. We continue to have as the response from the government, “Well, you know what? You guys shouldn't be talking about a story of Conservative values going forward because you left $150 billion of debt during your term.”
Let me clarify what happened in this country and the reason we went into deficit stimulus spending. The government uses it in the context of just throwing it out there. It is another political point that it thinks it is making with Canadians, saying, “The Conservatives can't talk. They left us $150 billion.”
Many of us were in this House during those times of the global downturn. I had a personal relationship with the then finance minister, Jim Flaherty. I can tell members from discussions with him that the world economy was in crisis. It was to the point that in 24 hours there could have been a global collapse if industrialized countries did not come together and make a commitment to put money into stimulating the economy. We, as a government, though we are not prone to wanting to go into deficit, agreed, and we saved the auto industry. We did projects across this country that pumped money into our economy. We literally saved the economy of our country, and of the industrialized world, to be quite frank.
When the government brings up this $150-billion debt, it is never in the context of what it was.
I will make one last point. We put in specific timelines to bring it back to balance. In 2014-15, we were $1.9 billion over, in surplus, in that budget, because we made investments that we had to make because of the world economy, the global economic downturn. Some people called it “the great recession”. It was definitely the second-biggest downturn in the world economy since the depression. That is our track record.