Mr. Speaker, I am sharing my time with the hon. member for Esquimalt—Juan de Fuca.
It is an honour to rise in this House today to represent my constituents of Don Valley East.
Last week the Conservative government introduced budget 2007, its second federal budget since assuming office in 2006. I wish I could say that these past two budgets have improved the lives of low income and middle income Canadians, yet I am afraid that the facts speak for themselves.
It is a fact that in 2005 the last Liberal budget made a significant effort to deliver tax relief for those in our society who earn the least. The lowest tax bracket was dropped to 15% and, despite what the Minister of Finance said in question period today, those who filed their tax returns know that it was 15%. The amount that all Canadians can earn before taxes, the basic personal amount, was increased by $400 in the Liberal budget.
Putting more money in the pockets of low income and middle income Canadians represents true tax relief for those who need it most. Yet this year, Canadians earning $36,000 a year or less will be in for a rude awakening when they file their income taxes. This is because the tax hikes that the Conservatives levied on low income and middle income Canadians in budget 2006 will come into effect this year.
Those earning the lowest incomes will see their tax rate increase from 15% to 15.5% and the $400 tax credit that the Liberals delivered in 2005 will suddenly disappear. In fact, the income tax measures first introduced in budget 2006 will have the effect of putting 20,000 low income Canadians back onto the tax rolls, taxpayers that had been previously removed by Liberal tax cuts.
For example, it is estimated that a single individual earning $15,000 a year will actually see his or her income taxes increase by as much as $149. Furthermore, a single individual earning an annual salary of $35,000 will pay an extra $122. Does this sound like tax fairness?
The fact is that the Conservative finance minister has squandered an opportunity to make a real difference in the lives of 5.2 million Canadians who live at the margins. While the so-called new government claims that budget 2007 will somehow help low income Canadians aspire to a better life, the fact remains that this budget is financing its vote buying scheme on the backs of those in our society who earn the least.
Here is a real gem of an example. Chapter 3 of the budget outlines one of the Conservatives' foremost priorities: “Encouraging youth participation in Canadian heritage sports like Canadian three-down football and lacrosse with an investment of $1.5 million over the next two years...”.
I have nothing against football or lacrosse, but like most Canadians I wonder why the federal government would intrude so far into provincial and municipal jurisdictions and come up with a budget gimmick like this.
What about the environment? What about affordable child care? What about the quality of life for first nations?
And what about hundreds of thousands of seniors who lost their life savings when the Conservatives deliberately broke an election promise last October and wiped out billions of dollars from the income trust sector?
Canadians no longer trust the Conservative Prime Minister, who, as leader of the Canadian Alliance, called the Kyoto protocol a “socialist” plot to suck wealth from developed countries.
Nobody took the Prime Minister seriously with his sudden conversion to the environment, especially since last January he quickly sacked his environment minister, who happened to be a woman, to salvage his government's public image.
If the Conservatives are truly serious about climate change, I challenge some of the government members sitting on the opposite side of this House to please explain their position on carbon markets and why Canada will not participate even though business leaders, including the chair of the Toronto Stock Exchange, enthusiastically favour such markets.
However, the Conservative finance minister has distinguished himself on at least one front. With $12.7 billion in new spending, combined with various other tax gimmicks, he has established himself as the biggest-spending finance minister in Canadian history.
So much for the tax and spend Conservatives who, when they left office in 1993, stuck Canadians with a $42 billion deficit and the largest federal debt in history. Also, the finance minister left Ontario with an almost $6 billion deficit. Talk about fiscal prudence.
However, let us return to assistance for low income and middle income Canadians. What happened to affordable day care in this country? In 2005 the Liberal government signed an agreement with all 10 provinces and territories to create a truly national day care program. That plan created 14,000 newly licensed child care spaces in Ontario alone. The Conservatives destroyed that program and replaced it in their first 2006 budget with a naive scheme to create 125,000 new child care spaces simply through business tax credits.
How many new spaces were created under this plan? Zero. Nil. Not a single new space was created and the Conservatives wasted an entire year. Now they have quietly axed this program in favour of a meagre payment to the provinces and territories that pales in comparison to the $1 billion delivered by the former Liberal government.
The cancellation of the early learning and child care strategy was an insult to parents in the first place, and to witness the failure of yet another Conservative scheme is mind-boggling.
How about the first nations? One of the first acts of the Conservative government was to axe the $5 billion Kelowna accord, which would have had a significant impact on the quality of life for first nations. Budget 2007 contains very little for first nations and, once again, another year has been wasted.
Never before has a government done so little with such a large budget surplus.
Seniors who lost their life savings through the income trust announcement last October are asking what is in this budget for them. Nothing.
That is why I and my Liberal colleagues cannot support this budget. The Conservatives have squandered an opportunity for low income and middle income Canadians to aspire for a better life.
Worst of all, they have wasted an entire year and the entire budget surplus on little more than a public relations campaign designed to buy votes with the hard-earned tax dollars of Canadians. Hence, my colleagues will not support the budget.