Mr. Speaker, I am very pleased to finally be able to present Bill C-28 today at third reading.
As we conclude what has already been, and even more so this morning, an exhaustive debate on this piece of legislation, I would like to thank most hon. colleagues in this House for supporting the motion to get us back to a serious debate on the implementation of Bill C-28. It is important that we get this done as soon as possible.
The bill before the House today proposes to implement the tax measures announced in this fall's economic statement, along with the outstanding budget 2007 measures not yet legislated.
Before continuing, I would first like to comment on the remarkable state of the Canadian economy. While cognizant of certain sector specific challenges, our economy has performed incredibly well over the first half of 2007, bolstering revenue growth and the overall fiscal position of the government. More important, it has yielded impressive employment growth. According to Statistics Canada's recently released November employment numbers, Canada created 42,600 new jobs last month alone. Contrary to declarations otherwise, these were chiefly good quality, well paying jobs.
As TD Securities economist Jacqui Douglas noted on the November job data:
The bulk of the employment growth came from full-time, as opposed to part-time...and even more importantly, the private paid sector actually added a significant number of jobs.
Furthermore, year to date, an astounding 388,000 jobs have been created in Canada.
Plainly speaking, our economic and fiscal positions are solid and ready to withstand challenges on the horizon. In the words of National Bank of Canada economist Stéfane Marion, with “the employment to population ratio at a new all-time high and job creation more evenly split between regions, the Canadian domestic economy remains in great shape to absorb the incoming slowdown in the United States”.
That strong position has allowed our Conservative government to proactively tackle two important priorities for Canadians: lowering taxes and reducing debt. Indeed, our planned debt reduction is $10 billion for 2007-08 and $3 billion in each year after that. This will bring a total debt reduction since 2005-06 to over $37 billion. That is lowering the federal debt burden that we are passing on to future generations by nearly an astounding $1,600 for every Canadian.
What is more, we have followed through on our promise to provide a tax back guarantee to ensure that interest savings resulting from debt reduction will be returned to Canadians through lower personal income taxes. As a result of the additional debt payment, the total value of personal income tax relief provided under the tax back guarantee will rise to $2.5 billion in 2012-13.
Canada's strong fiscal position has also allowed us to reduce Canada's overall tax burden for individuals and businesses by $190 billion over this and the next five fiscal years, and in doing so, bringing taxes for Canadians to their lowest level in 50 years, a remarkable achievement by this Conservative government.
I would now like to outline the initiatives in the bill associated with the fall's economic statement and follow by outlining key measures in Bill C-28 related to budget 2007.
The recent economic statement introduced broad based tax cuts that delighted most Canadians. John Williamson of the Canadian Taxpayers Federation was overwhelmed. He remarked the economic statement “exceeded our expectations…these are measures that are going to benefit every single tax payer in the country”.
Even typically reserved economists gushed with praise. For example, Patricia Croft, an economist with investment firm Philips, Hager & North, was moved to say the following:
It’s absolutely stunning the scope of the tax cuts that were put into place…there’s something for everyone in there…it’s…Christmas, Hanukah and News Years all rolled into one. Basically anything that had a pulse today got a tax cut.
What elicited such a positive, glowing response? I will start with the one percentage point GST reduction. Not only has this fulfilled our campaign promise to lower the GST to 5%, but it will save Canadian taxpayers approximately $12 billion next year alone. This is a significant tax reduction that directly affects Canadians whenever they purchase items subject to the GST.
Here are some examples of the savings that Canadians can expect. A couple that purchases a new $300,000 home will save almost $4,000 in GST. A family that does $10,000 of home renovations will save $200 in GST. A family that spends $30,000 on a new mini-van will save $600 in GST. No wonder so many diverse organizations have embraced this announcement.
Retail BC, for instance, remarked:
The GST cut is welcome news to consumers as well as Canadian retailers who are working to make their prices more competitive with the US.
Tourism Victoria's CEO, Lorne Whyte, liked the GST cut. He said it would “be good for the domestic market for tourism in Canada”.
Even former Liberal deputy prime minister, Sheila Copps, heralded our GST cut, noting:
Most Canadians don't like the GST and want governments to reduce it. Political parties who ignore the consensus do so at their peril. It would be suicidal for any opposition party to bring down the government on the GST.
To ensure continued assistance for low to modest income Canadians, the GST credit will be maintained at its current level. This translates into more than $1 billion in benefits annually for these individuals.
The economic statement also announced additional tax relief for individuals and families by increasing the amount Canadians could earn before they start to pay income tax, up to $9,600. What is more, this measure is retroactive to January 1. Also, a further increase to $10,100 is slated for January 1, 2009. These measures alone will provide $2.5 billion in tax relief over this and the next year.
Furthermore, the economic statement proposes to reduce the lowest personal income tax rate to 15%, retroactive again to January 1, that is this tax year. As a result of the personal income tax cut and the GST reductions announced in the economic statement, a family that earns between $15,000 and $30,000 will save $180 on average in 2008. The average savings for a family that earns between $80,000 and $100,000 will be $600. It is always good news when money is put back into the pockets of taxpayers where it belongs.
Additionally, the economic statement brought forward measures to help Canadian business prosper. First, Bill C-28 proposes to reduce the general corporate income tax rate to 15% by 2012. This will start with a 1% per cent reduction in 2008, beyond the already scheduled reductions previously introduced. In addition, the bill proposes to reduce the small business income tax to 11% in 2008, one year earlier than previously scheduled.
With these tax reductions, we have put business taxes on a five year downward track to help stimulate economic growth, create even more jobs and provide business predictability for future planning. These are proactive and strong measures to allow prosperity to grow in Canada. These are the right measures for Canada at the right time.
Indeed, the Canadian Chamber of Commerce lauded them as “exactly in line with what we had proposed on behalf of our members at the Canadian Chamber”.
The Canadian Federation of Independent Business lauded them as well, saying, “really encouraging because it sends a strong signal to business”.
Royal Bank of Canada chief economist Craig Wright declared “positive for growth prospects which should be positive going forward for the Canadian economy ”.
Finn Poschmann of C.D. Howe Institute simply noted them as “terrific to see”.
With these reductions, we will have established the lowest overall tax rate on new business investment in the G-7 by 2011 and the lowest corporate income tax rate among the major industrialized economies by 2012, another remarkable achievement by this Conservative government.
As I alluded to at the outset, Bill C-28 proposes to implement the numerous outstanding tax measures from budget 2007 not included in the first budget bill passed in Parliament in late spring.
While time precludes me from addressing every one of these measures, I will note Bill C-28 includes, among others, provisions to: eliminate income tax on elementary and secondary school scholarships; increase the lifetime capital gains exemption to $750,000 for small business owners, farmers and fishers; increase the meal expenses tax deductible for long-haul truck drivers; extend the mineral exploration tax credit; reduce the paperwork burden of small business by easing tax remittance and filing requirements; encourage businesses to create new child care spaces through an investment tax credit; waive income tax payable by non-resident athletes at the upcoming Vancouver 2012 games; and introduce the working income tax benefit and the registered disability savings plan.
It is those last two items that I will further highlight for Canadians. These are two progressive, compassionate initiatives that clearly illustrate how the Conservative government is assisting the most vulnerable Canadians while also prudently managing the economy.
To begin, let us discuss the new working income tax benefit. This initiative has been heralded by the Caledon Institute of Social Policy as a “welcome addition to Canadian social policy…fill(ing) a long-recognized gap in Canada’s income security system”.
The United Way of Greater Toronto report has celebrated it as well as a “positive changes that will help to improve the situations of low-income families”.
Why such accolades? It is because of the important contribution this initiative will make to help low income Canadians over the so-called welfare wall. The welfare wall refers to the fact that for too many low income Canadians, taking a job can mean being financially penalized.
For example, a typical single parent who takes a low income job can lose a large portion of each dollar earned to taxes and reduce income support. In addition, individuals who receive social assistance benefits could also lose in-kind benefits such as subsidized housing and prescription drugs.
The working income tax benefit will provide assistance up to $500 for individuals and $1,000 for families. This will reward and strengthen incentives to work for an estimated 1.2 million low income Canadians and give them a leg up to get over that welfare wall.
To continue, let us discuss the registered disability savings plan. Our Conservative government recognizes an important consideration for parents and grandparents of a child with a severe disability is how to best ensure that child's financial security when they are no longer able to provide support.
In 2006 the Minister of Finance appointed the expert panel to examine this issue and provide recommendations. The proposed measures in Bill C-28 act on the panel's recommendations by introducing a new registered disability savings plan. Based generally on the existing registered education savings plan design, the plan would help parents and others save toward the long term financial security of persons with severe disabilities.
I hope all members understand the significance of such efforts to assist disabled Canadians. I hope all members would put aside the typical partisan posturing to at least indicate support for this measure.
While to some members this might seem to be just another government program, it is much more. To those who truly understand the impact that this will have, this measure is of profound importance.
To quote a Vancouver Province editorial from earlier this year, “the great good it will do is beyond calculation in mere dollars and cents”.
Indeed, Al Etmanski of the Planned Lifetime Advocacy Network reflected in a radio interview that this measures announcement “actually bringing tears to my eyes...I think it was very emotional for us, not just personally, but I think we understood what this meant to people and families”.
Bill C-28 is a large and broad piece of legislation covering an assortment of issues and addressing numerous challenges, but its overarching theme is the promotion of a better, more prosperous Canada, an even better Canada to live in and to leave to our children and our grandchildren. However, to do so, we cannot afford to sit back and rest on our laurels.
To quote the English poet, Percy Bysshe Shelley, “Nothing wilts faster than laurels that have been rested upon”.
It is time to press ahead and build on our achievements. Bill C-28 does just that. That is why I call on the House to quickly pass this proposed legislation.
