Mr. Speaker, I will be splitting my time with the member for Oshawa.
First, I completely reject the premise of today's motion. Our Conservative government's historic tax reductions, both personal and corporate, have benefited innovators and entrepreneurs, those individuals who comprise Canadian businesses and the hard-working Canadians whom they employ. Accordingly, lower business taxes are clearly a positive. It appears that the NDP does not realize this, though our competitors in the industrialized world beyond our borders do understand it.
An arena in which Canadians compete for business must be allowed to do so operating in a fair business climate, and in that respect, competitive corporate tax rates are a clear positive. Most observers are universally in agreement with that. As Nancy Hughes Anthony, president and CEO of the Canadian Bankers Association pointed out:
Lower corporate taxes will enable Canada to compete successfully with other countries, stimulate sustainable long-term economic growth, and help to improve the standard of living for all Canadians.
It means creating quality jobs, attracting investment and talent, encouraging innovation, and building a strong tax base that can support the social programs that we hold dear.
However, the NDP alone in the economic wilderness of a bygone era of high corporate and personal taxes does not understand that. It is still clinging to an old-fashioned regressive and discredited notion, namely, that big government, high taxes and huge government debt are the keys to prosperity. It would be amusing if it were not so sad, because it is clear that it has not learned a thing from the domestic and international examples of the last 50 years.
For everyone who doubts that, just listen to what the member for Toronto Centre had to say about the NDP's economic policies, someone who led the province as the NDP premier and implemented the very economic policy that the NDP advocates here today. He has derided today's motion as a tired and most off-base kind of economic jargon. My friend has assailed the NDP's economic policies as outdated and unrealistic.
The member for Toronto Centre, whom I welcome to the House, has admitted that he showed incredibly poor judgment when he implemented ill-advised policies such as this. We understand that he has learned greatly from his mistakes, namely that regressive and economically devastating high corporate tax policies are not the way this government wants to go, policies that killed investment and jobs in Ontario. After the benefit of hindsight, my colleague now says:
Our corporate taxes must be competitive. I know this is anathema to the NDP, but I can tell you that the [NDP leader] and the NDP are wrong about taxes.
We understand that. We understand the long term benefits of tax relief. We cut taxes to attract investment, to create jobs and to help sharpen Canada's competitive edge internationally. This is as straightforward as it is simple. That is what we are doing. We are taking concrete action to spur investment and jobs and to make Canada more competitive.
Tax measures introduced by this government since coming into office have provided tax relief approaching $200 billion. Almost three-quarters of this relief benefits individuals directly, whether it be through personal income tax relief or GST reductions, a tax reduction which benefits all Canadians each and every time they make a purchase, which is millions of times a day across the country, including those Canadians with incomes that are too low to pay income tax.
We are building Canada to remain competitive and create a strong business environment. The reduction of corporate taxes is an important part of the strategy. That is why we are reducing the federal corporate income tax rate to 15% and making it the lowest corporate income tax rate among the major developed economies. This is a positive measure for the economy and for Canadians, and the NDP's assertion otherwise has no basis in reality.
Just listen to the praise from the actual drivers of the Canadian economy with regard to our Conservative government's corporate tax reductions. These are the people who create the jobs for Canadian workers whom the NDP claims to care about, who create the government revenue for the social programs that the NDP also claims to care about.
Listen to the Canadian Council of Chief Executives:
The significant corporate income tax cuts...will provide a powerful boost to Canada's ability to compete for investment and jobs in the global economy....[It] will help companies to continue to invest and grow in Canadian communities, despite the rapid rise of the Canadian dollar and intense global competition.
Or listen to the Canadian Manufacturers and Exporters:
Canada is going to have a very attractive tax environment to retain and attract business investment....
...this keeps us in the game of international investment.
Or listen to the Canadian Federation of Independent Business:
Tax cuts were our members' number one priority by far, with just the vast majority saying that was the number one issue. So, they have hit that issue.
Even the NDP premier of Manitoba praised them, stating:
[The Conservative government's] tax reductions...in all fairness...are positive and we're going to see that through the economy.
The NDP is not listening to them, and it will not listen because it is stuck in the past. Sadly, it has no intention of embracing the realities of today. Again, it would be funny if it were not so sad, as it was sad when the NDP and the then Liberal government teamed up in 2005 and the result was to reverse the relatively minor corporate taxes that the government of the day introduced in its 2005 budget.
The NDP demanded that the corporate tax cuts be stripped from the budget in return for propping up a scandal-ridden Liberal government teetering on collapse due to the sponsorship scandal. The unprincipled Liberals naturally agreed.
We have also seen this type of Liberal approach more recently, when my Liberal friends refused to show up to support their own confidence motion or to vote against the government for fear of having to face the voters. If we consider the manufacturing sector, which the NDP claims to care about, it is suffering immensely as a result of this deal.
As the Canadian Manufacturers and Exporters stated at that time, it is not action that will preserve Canada's industrial base. Manufacturers feel their pleas are not being taken seriously. They worry whether they understand the serious pressures that are facing them.
It is also sad that the NDP has opposed the support we have provided to the manufacturing and forestry sectors, support allowing them to better invest and compete. For example, we provided over $9 billion in tax relief by 2012-13. We are also improving the availability and accessibility of financial support for research and development, and extending the enhanced scientific research and experimental development investment tax credit.
We are also helping Canadians in their communities affected by a slowing global economy. To help vulnerable communities and laid-off workers, we announced a $1 billion community development trust. This will support communities and workers experiencing hardship through no fault of their own, an initiative that was praised across the country by premiers and organizations from across the political spectrum, like the NDP premier of Manitoba, Gary Doer, who stated:
I also believe that this is very, very important to the regions and the communities in Canada and the money will be very, very helpful and important.
The Federation of Canadian Municipalities applauded the initiative, saying that the federal government's decision to help Canadian communities hit by economic upheaval is more than welcome.
The initiatives I have focused on today will significantly benefit all Canadians. Our tax cuts will especially help Canadians compete for the jobs and investments of tomorrow. That has been recognized almost universally from Canada's business leaders and economists, and it is recognized of late by even the Liberal Party.