Mr. Speaker, I will be splitting my time with the hon. member for Sherwood Park—Fort Saskatchewan.
The Liberals claim that this budget is all about the middle class and those working hard to join it. Let us talk about precisely that subject and examine some of the systematic wealth transfers the government is undertaking, to move money from the middle class and those working to join it to the most wealthy and well-connected people in Canada.
Let us start with the carbon tax, which will charge $30 a tonne at the beginning and rise to $50 a tonne of emitted CO2 by the time it is fully implemented. That will undisputedly increase the cost of almost everything. According to finance department documents, it will increase the cost of gas, home heating, and groceries, and create a “cascade” of higher prices throughout the economy.
Who will that affect? According to Statistics Canada, poor families spend a third more of their household income on the things that tax applies to than do rich households. That is because many of the costs I just laid out are fixed for families. It does not matter if people are rich or poor, they have to heat their homes and turn on the lights, and they have to eat.
The more discretionary products that people enjoy, like going on long vacations or enjoying a luxurious time with their family at a fancy resort, would not consume nearly as great a percentage of the resources that are taxed under this regime, so the percentage impact on the incomes of poor families is much higher than on the incomes of rich families, the very definition of a regressive tax.
Who will get the money? We know that in none of the provinces across the country will this tax be revenue neutral. Even British Columbia, which has the least damaging regime, is taking more in taxes than it is giving back in tax relief. Other provinces have convoluted schemes that require lobbyists, consultants, and political influence for anyone to get that money back.
For example, in Ontario, people can get some of their carbon tax money back if they apply for a rebate on a $150,000 electric car. Now, that is going to be great for the millionaires and billionaires who drive Teslas, but not so great for minimum wage-earning secretaries or hairstylists struggling to pay for their kids' basic needs.
We know that those who are well lobbied for, well organized, well connected, and just plain wealthy will get the lion's share of the proceeds of this tax. It is a wealth transfer from the middle class and those working to join it to the wealthiest one per cent.
Then let us move to the national debt. This budget adds $25 billion to the national debt. What does that bring? It brings interest. To whom does it bring interest? It brings interest to those who can afford to buy government bonds. Who are those people? Are minimum wage-earning people buying governments bonds? Are single mothers struggling to pay for their groceries setting aside money to buy government bonds? No, of course they are not.
In fact, the budget gets rid of the Canada savings bond, which used to be a vehicle of savings for Canadians, and that is an acknowledgement that it is not everyday Canadians who lend to the government anymore; it is wealthy institutional investors who like the risk-free return that government bonds offer, because they are backed up by a taxpayer guarantee.
Therefore the higher-income people will necessarily benefit more from the billions of dollars in interest payments taxpayers will fund on this year's $25 billion deficit.
Then there is the infrastructure bank. The Liberals have proposed an infrastructure bank that would offer loan guarantees and subordinated equity to large institutional investors building public infrastructure in Canada.
I have no problem with the private sector building public infrastructure. I do not even have a problem with the idea that it might benefit from the value it adds to the economy. However, profit cannot come without risk. At the end of the day, the profit-maker must be the risk-taker. However, the infrastructure bank is designed to lift the risk off the balance sheets of the wealthy investors and put it on to the backs of taxpayers. That is what loan guarantees do. If the project fails and it cannot repay its funds, there is a guarantee from the taxpayers to pay it back. A subordinated equity position would ensure that the taxpayer contribution to an infrastructure project would be the first dollar lost and the last dollar to get a return on.
For example, if the infrastructure bank led to the construction of a toll bridge and that toll bridge made money, the private investors would get the profit of that money. However, if that bridge lost money by going over budget or coming in under revenue, then the taxpayer would take the loss. That is what subordinate equity means. It means the taxpayer would be subordinate to the wealthy interests that profit from this program.
Then there is all this talk about innovative, accelerated, synergistic, supercluster, all the science fiction in the budget. They give as an example of that the $372 million taxpayer funded loan to Bombardier that was supposed to be really innovative, create lots of innovative jobs. In fact, 4,500 Bombardier's Canadian employees have lost or will be losing their jobs, while six executives are sharing $32 million in current and deferred compensation.
If the government had required that the executives only make $200,000 a year, which the is the Liberal definition of “rich” out of its platform, then there would have been enough money to hire hundreds of additional employees at the median income rate that is defined by the budget to which I am speaking right now.
If this corporate welfare were really about jobs and not about lining the pockets of well organized, well lobbied for, well lawyered, and well connected insiders, then there would have been guarantees for that public money to translate into real jobs for middle-class workers. There were no such guarantees. In fact, precisely the opposite occurred. The 1% of the 1% of the 1% made off like bandits. The billionaire Bombardier-Beaudoin family got reinforced with the taxpayer dollars funded by middle-class people in our country.
These are but four examples of how this big and growing government has created a feeding frenzy with those who have the influence and the money to benefit from all the proceeds that are going out the door.
We know that if we want to help the middle class and those working to join it, we do it by lowering taxes, opening up free enterprise, getting rid of all the favours, and allowing people to achieve great things based on their merits