Mr. Speaker, I have the honour of splitting my time today with the member for Perth—Wellington.
I rise in the House today to speak to the motion on the floor and call upon the Prime Minister to provide written confirmation that his government will not raise taxes on Canadians. In order to do this, we should look at the record of the Liberals when they are in power. Indeed, it is a tale to tell.
As writer and philosopher George Santayana penned, “Those who cannot remember the past are condemned to repeat it.” If we look at the Liberal government of the 1960s through to the 1980s, under the Liberals, federal spending rose from 30% to 53% of GDP. I am sure that many people in the chamber can remember that incredible inflation. Prime lending rates skyrocketed to an incredible 22%. Subsequently, the inability to pay such exorbitant rates resulted in both corporate and personal bankruptcies. It would be two decades before Canadians would crawl out of this economic black hole and begin to reduce the country's debt. In fact, by 1984, Canada's international debt had grown by 700%.
If we fast-track to 2019, the current Government of Canada is on the same trajectory. There is 81% of middle-income Canadians who have experienced the economic pain of higher taxes, and the Prime Minister has promised Canadians that he would not raise taxes but lower them.
Another obvious comparison to years ago is the now failed and infamous national energy program. Starting in 1980, the national energy program, with the Liberal Party behind it, single-handedly destroyed the thriving economic engine that benefited all Canadians, putting thousands of Canadians out of work and causing many to not only lose their livelihoods but their homes as well.
Enter the current Liberal government and its pipeline debacle. Because of the Prime Minister's failure to secure a pipeline, thousands of Canadians have lost their jobs. It sounds familiar, does it not? Currently, Canadian taxpayers are on the hook for a $4.5-billion pipeline that may never be built. Last week, the Parliamentary Budget Officer said that the government has probably overpaid for the Trans Mountain pipeline by an unbelievable $1 billion. This is costing the Canadian economy about $50 million a day.
Doug Porter, the chief economist and managing director of BMO Financial Group, predicts the following: “I think Canada has a very weak competitive position. I think we’re going to get crushed in the next recession”. Canadians are already feeling the crush. The average income tax increase for middle-income Canadians is $840. In addition, Canada pension plan premiums have gone up to $2,200 per household, and employment insurance premiums are up by $85 per worker.
The outlook is even bleaker as the Liberals insist upon this new carbon tax of theirs. This will end up costing households about $2,500. Sadly, the carbon tax fails to address the environment and serves to make life even more expensive for Canadians, and yet the Prime Minister has promised that he will not raise taxes. This is not the Liberal record. Fifty years ago, the Liberals inherited a strong, growing and varied Canadian economy, and when they left in 1984, Canadians were still feeling the effects of Canada's worst recession since the Great Depression.
The current Liberal government inherited Stephen Harper's zero-deficit balance sheet a little over three years ago, and over the last three years, the government has added $60 billion to the national debt. The Prime Minister promised that the budget would be balanced this year. Instead, the deficit will hit $21.3 billion. Again, he has promised that he will not raise taxes. This is why we are here today. We are calling upon the Prime Minister to provide written confirmation that his government will not further raise taxes on Canadians. In light of how he has bungled our coffers thus far, it is simply not credible to believe the Prime Minister when he says that he will not raise taxes. The question that I think Canadians have to ask is, by how much? According to Finance, the budget will not return to balance until 2040, and by then racking up an additional $271 billion of debt.
Financial trends are cyclical. Most economists believe Canadians and the world will be facing an economic downturn. The Prime Minister has left nothing to cushion Canada from such a forecast. Last year Canada's national debt reached an all-time high of $670 billion, or a massive $47,600 per Canadian family. A recent Fraser Institute report states that a very serious downturn could add more than $50 billion per year to the government's deficit forecast. Canada's national debt would be nearly a trillion dollars by the year 2023. That is unfathomable and should be unthinkable.
When the recession hit Canada in 2009 we were largely insulated because of the prudent economic planning by the former Conservative government. I remember travelling with prime minister Stephen Harper, and it was astonishing to see world leaders lining up to speak with the prime minister. Presidents and prime ministers from around the globe would line up to ask Mr. Harper how it was that Canada was the only country in the G7 able to withstand the worldwide economic downturn. It was due in part to ensuring that we had a good financial cushion to rely on in the event of a fiscal recession. The Liberals, on the other hand, seem hell-bent on employing any fiscal policy so long as it is not in line with what the Conservatives implemented.
In addition, I remember back in 1988 when the Liberals were against implementing the GST. They had just finished coming off an election where they were against the free trade agreement, and we remember how they changed their minds on that one. All Liberal leaders at the time were against implementing the GST. Liberal leader John Turner said the GST was an attack on the weaker regions of the country, that it was regressive, against lower-income groups, invisible, sneaky and of course an administrative nightmare.
It gets better. Paul Martin stated in the chamber the following: “Mr. Speaker, the goods and services tax is a stupid, inept and incompetent tax”. He went on to say he would abolish the GST.
It did not stop there. In 1990, then Liberal leader Jean Chrétien said on September 27 of that year, “I want this tax dead”. He went on to say the following: “I am opposed to the GST. I have always been opposed to it, and I will always be opposed to it. It is a tax that is both regressive and discriminatory”.
We cannot believe any of those Liberal leaders. What they did when they returned to power was to be completely onside with implementing the GST. What I have been saying about them is that they cannot be trusted in these areas.
I was told many years ago that the Liberals would say whatever it takes to get elected. If they think it will get them elected to be against the free trade agreement, they are against it. If it helps them to be against GST, wage and price controls, name it, over the years it was whatever they felt was necessary. However, they would always go with something afterward that was completely out of line with that.
NAFTA is just another example of their bungling of their international obligations for our country. We can see that the new NAFTA that is being presented to us is weaker than the existing one. It will raise the price of condos through the steel and aluminum tariffs. That is just one example. American farmers will have tariff-free access to 3.6% of Canada's dairy market. It will send hundreds of millions of dollars more of their product into our country, and not a single concession was made by the United States.
Why do we want to have a written confirmation from the Prime Minister that he will not raise taxes? Just have a look at the last 50 years of Liberal governments. The Liberals say one thing during an election and do something different after the election. It is our job to hold them accountable as much as we can. That is why we want to have this in writing.