SoVote

Ms. Julie Dzerowicz (Davenport, Lib.)

Mar/21/22 5:11:48 p.m.
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Madam Speaker, on behalf of the residents of Davenport, whom I am so proud to represent, I appreciate the opportunity to take part in today's debate on the opposition day motion put forward by the leader of the NDP on tax cuts and fairness. It is indeed a rare pleasure to debate a motion that is supportive of our federal government's platform commitment to reduce taxes for middle-class Canadians while raising them on the wealthiest. I should begin by thanking the hon. member for Burnaby South for his support. It is my sincere hope that this partnership toward a fair tax system for all Canadians remains long and productive. As the hon. member knows, and indeed all members of the House know, one of our key priorities when we were first elected in late 2015 was to reduce taxes for middle-class Canadians while raising them on the wealthiest 1%. We have delivered on that commitment in real terms. We have also increased support for fairness and for low-income workers through programs such as the Canada child benefit and the Canada workers benefit, which have helped lift over one million Canadians out of poverty since 2015, including 435,000 children. We have also increased the guaranteed income supplement top-up benefit for low-income, single seniors and enhanced the GIS earnings exemption, and are increasing old age security for Canadians aged 75 and older beginning in July of this year. Moreover, we have increased the basic personal amount that Canadians can earn before paying any federal income tax. To ensure that this support is targeted at the middle class, the benefits of the increased basic personal amount are phased out for high-income taxpayers. When this measure is fully implemented next year, single individuals will pay $300 less in tax each year and families will pay $600 less, which will be a huge savings for both families and individuals. In addition to these new tax breaks for Canadians and Canadian workers, our federal government has also targeted new tax relief this year to businesses that are doing their part to create jobs and growth by investing in a better future for all Canadians. For example, as more countries commit to achieving net-zero emissions by 2050, the demand for zero-emissions technology will only grow. To create jobs and support the growth of clean technology manufacturing in Canada, budget 2021 proposed to reduce by half the general, corporate and small business income tax rates for businesses that manufacture zero-emissions technologies. This tax cut applied as of January 1, 2022. What is more, we are not just providing tax breaks to innovative businesses that are doing their part to protect the environment this year. We are also helping the many small businesses that are doing their part in fighting COVID. Small businesses understand that proper ventilation makes indoor air healthier and safer, helping to reduce the risk of COVID-19 transmission. Many want to make further improvements to their indoor air quality to protect their workers and customers, but they have been finding that investing in equipment to improve ventilation can be costly. That is why our federal government has proposed a temporary, refundable small business air quality improvement tax credit of 25% on eligible air quality improvement expenses incurred by small businesses. Businesses would receive the credit on eligible expenses incurred between September 1, 2021, and December 31, 2022, up to a maximum of $10,000 per location and $50,000 in total. That is not just good for their businesses; it is also good for the health and safety of Canadians. As members can see, where our government delivers tax cuts to businesses, it is doing so strictly with a view to encouraging the sort of investments that support Canadians and their highest priorities. At the same time, we are ensuring that taxes are appropriate and fair and discourage the sort of activities that are not helpful to Canadians. A prime example of this is our proposed tax on non-resident, non-Canadian-owned residential real estate that is considered to be vacant or underused. This tax would become effective as of January 1, 2022. While this tax would not be paid by individual Canadian homeowners, it would certainly benefit Canadians. That is because the recent and rapid rise in housing prices has made finding an affordable place to call home increasingly difficult, and the underused housing tax would help support investments in housing affordability so that all Canadians can have a safe and affordable place to call home. Another important example of how our government is ensuring that Canadians do not have to bear the burden of other decisions is the price that we have put on carbon pollution in Canada. The fact is that climate change presents a threat to our long-term health and economic prosperity, and putting a price on carbon pollution is the most effective policy to address it. Fortunately, our federal government, along with the hon. member for Burnaby South and many other members of this House, understands this, as do most Canadians and provincial governments. That is why we have recently confirmed our plan to increase the carbon price through to 2030. At the same time, we will continue to return the direct proceeds from the federal carbon pollution pricing system to the province or territory of origin. In jurisdictions that do not have their own fuel charge consistent with the federal benchmark criteria, and that would be Ontario, Manitoba, Saskatchewan and Alberta, approximately 90% of the direct proceeds from the fuel charge are returned to residents of those provinces through the climate action incentive payments. As a result, in most households these climate action incentive payments actually represent more than the increased cost they face from the federal carbon pollution pricing system. What is more is that the remaining fuel charge proceeds, about 10%, are used to support small businesses, farmers, indigenous groups and other organizations. Not one dollar stays with the federal government, and going forward, the federal carbon price will continue to be revenue neutral for the Government of Canada. Our federal government is also well aware that even as Canadians have sacrificed to keep our economy going through the pandemic, some of the wealthiest have done very well for themselves. We have already taken action on the understanding that those who can afford to buy luxury goods can afford to pay a bit more. To that end, our federal government is following through on its commitment to introduce a tax on select luxury goods. In budget 2021, we proposed the introduction of a tax on the sale of new luxury cars and aircraft with a retail sale price over $100,000 and on boats priced over $250,000. This tax would be calculated at the lesser of 20% of the value above these price thresholds or 10% of the full value of the luxury vehicle, aircraft or vessel. To implement this, recently at committee on March 11, 2022, we released draft legislative proposals for public comment. These draft legislative proposals reflect and respond to input received during consultations with the stakeholders. With the support of our partners in the House who share our goal of a fair tax system, this tax would come into effect on September 1, 2022. Revenues raised by this tax can be used to offset costs for Canadians and invest in a strong economic recovery that supports their highest priorities. In conclusion, when taken together, all of these measures that I have touched on today show that our government is following through on its commitment to a fair tax system. We will continue to follow through on this commitment as we move forward, including with respect to our commitment to ensure that large, profitable banks and insurers pay their fair share as well. I am pleased that with today's motion for debate, we will have the support of the hon. member for Burnaby South and his colleagues as we do so. I appreciate the opportunity to make the case and speak in the House today.

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Context: House Hansard - 42 - Mar/21/22

Ms. Julie Dzerowicz

Mar/21/22 5:22:21 p.m.
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Madam Speaker, I would say I am very proud of our government and the promises that we have kept. Many of them I mentioned in my speech, including increasing taxes on the wealthiest 1%, reducing them on the middle class, supporting our families both with respect to introducing the Canada child benefit and now a national child care plan, which all provinces and territories, except for Ontario, have already signed on to. There have been many other promises to try to reduce income inequality and create tax fairness in this country. In terms of the publicly accessible beneficial ownership registry, I fully support it and am very proud that our government has committed to implementing it. Money laundering is indeed a very serious issue. It is one that is increasing in complexity, so I support this program and I absolutely support continuing to encourage our government to implement it as quickly as possible.

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Context: House Hansard - 42 - Mar/21/22

Ms. Julie Dzerowicz

Mar/21/22 5:24:42 p.m.
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Madam Speaker, through you, I would like to thank the hon. member for his question. It is an important one. I would like to respectfully disagree with the member. I think we have done a lot. We have implemented many things to do everything we can to try to reduce income inequality in our country. Whether it was the introduction of the Canada child benefit, the increase in the GIS, taxing the top 1% and reducing tax on the middle class, or introducing increases in the Canada worker benefit a couple of times, there have been a number of measures we have taken to try to reduce income inequality in our country. Inflation absolutely is a huge issue and I think it impacts everyone. We should mention that there are a number of measures in place that will help to protect those on the lower end of the income scale in our country, indexed to inflation, so our—

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Context: House Hansard - 42 - Mar/21/22

Ms. Julie Dzerowicz

Mar/21/22 5:26:42 p.m.
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Madam Speaker, I want to thank the hon. member for her excellent question and for bringing this back to the fore. I agree 100% that we need to do everything we can to bring this beneficial ownership registry into effect. We have to do everything we can to make sure it is transparent with respect to who owns the public assets. This should be a key priority for our government moving forward.

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