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Decentralized Democracy

House Hansard - 83

44th Parl. 1st Sess.
June 7, 2022 10:00AM
  • Jun/7/22 12:54:45 p.m.
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Madam Speaker, I will be sharing my time with the member for Winnipeg North. On behalf of the residents of my riding of Davenport, it is absolute honour for me to speak on today's opposition day motion regarding inflation and taxation. Our federal government understands that Canadians are being hit hard by rising prices and, more importantly, we are taking effective action to meaningfully support Canadians so that they can deal with this challenge. Inflation is a global phenomenon that is being driven by unprecedented supply chain disruptions resulting from the COVID-19 pandemic, not to mention the severe commodity disruptions arising from Russia's brutal and illegal invasion of Ukraine. It is a complex and multi-faceted problem, and with today's motion for debate, the hon. opposition is offering what appears to be simple solutions. Unfortunately, the proposed solutions are not simple. Rising prices are the product of market forces, and these market forces are powerful. Taxes on gasoline and diesel, for example, represent only a very small portion of the total price that Canadians pay at the pump. Cutting them, as the opposition is proposing, would be ineffective in protecting consumers from these powerful global market forces. Even if our federal government were to cut gas prices in Canada by 5% today by removing the GST on gasoline and diesel, the benefits to consumers would be completely wiped out by market forces within a matter of days. The federal government would then be in an uneasy position of having spent tens or hundreds of millions of dollars trying to unsuccessfully fight powerful market forces over which it has completely no control. Instead of proposing unrealistic and ineffective solutions, our federal government is focused on implementing realistic measures to help families make ends meet, and we have been doing so since we were first elected in late 2015. Our government has already cut taxes for the middle class while raising them on the wealthiest 1%. We have also increased support for families and low-income workers through programs such as the Canada child benefit and the Canada workers benefit. Thanks to the Canada child benefit, nine out of 10 Canadian families have more money to help with the cost of caring for their children than they did with previous benefits, and our expanded Canada workers benefit, which provides support to low-income workers and also encourages many to enter the workforce, will support an estimated one million additional Canadians, which could mean $1,000 more per year for a full-time minimum-wage worker. Our financial support for Canadians does not stop there. In budget 2021, our federal government laid out an ambitious plan to provide Canadian parents with, on average, $10-a-day regulated child care spaces for children under six years old. In less than a year, we have reached agreements with all provinces and territories. This means that by the end of this year in 2022, families across Canada will have seen their child care fees reduced by an average of 50%. That is huge. That is an average of $6,000 in savings per child for families in provinces like Ontario, where my riding of Davenport is located. These are not savings that will appear in five or 10 years; these are savings that are going to occur by the end of this year. Over the past weekend, I had the chance to meet many parents across the riding, and they were very excited about the national child care plan and very much appreciated the additional dollars that are going into their pockets to help cover their living costs. By 2025-26, our national child care plan will mean an average child care fee of $10 a day for all regulated child care spaces across Canada, meaning thousands of dollars in savings for families across Canada. To support vulnerable Canadians at the other end of the demographic spectrum, we have increased the guaranteed income supplement top-up benefit for low-income single seniors. We have enhanced the GIS earnings exemption and we are increasing old age security for Canadians aged 75 and older in July of this year. This 10% increase will provide more than $766 in additional benefits to full pensioners over the first year. About 3.3 million Canadian seniors will benefit, and no action will be required on their part. They will automatically receive the payment if they are eligible. This is the first permanent increase to the old age security pension since 1973, other than adjustments due to inflation. Seniors in my riding of Davenport are really happy to hear this. They have been struggling with their fixed incomes and struggling with rising costs, and they are so happy to hear of this significant increase, which will have an impact on affordability in their lives. Seniors and Canadians who receive federal government support or benefits will also be happy to note that most of our federal government programs are indexed to inflation in order to protect Canadians from its impact. The government indexes the Canada child benefit to inflation, as well as the Canada pension plan, old age security, the guaranteed income supplement, the goods and services tax credit and other benefits for the most vulnerable Canadians. To further offset the impact of inflation and make life more affordable for Canadians, we have increased the basic personal amount that Canadians can earn before paying federal income tax. To ensure the 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 each year. There are a number of measures that our federal government is enacting and implementing in order to support families and support Canadians in dealing with the affordability crisis that is currently under way in Canada. Our federal government is also returning the direct proceeds from the federal carbon pollution pricing system to their province or territory of origin, with most of these proceeds going to families in those jurisdictions. In fact, in jurisdictions that do not have their own pricing system consistent with the federal benchmark criteria, those being Ontario, Manitoba, Saskatchewan and Alberta, approximately 90% of direct proceeds from the fuel charge are being returned to residents in those provinces through the climate action incentive payments. In 2022-23, these increased payments mean that a family of four will receive $745 in Ontario, $832 in Manitoba and $1,079 in Alberta. In addition, families in rural and small communities are eligible to receive an extra 10%. The reality is that as a result of these climate action incentive payments, most households are getting back more than what they are paying in increased costs as a result of the federal carbon pollution pricing system. What is more, the remaining fuel charge proceeds are being used to support small businesses, farmers, indigenous groups and other organizations. Going forward, the federal carbon price will continue to be revenue-neutral for the Government of Canada. At the same time, we are ensuring that taxes are appropriate and fair. Our federal government knows that those who can afford to buy expensive cars, planes and boats can also afford to pay a bit more. Canadians agree. Our government campaigned on this promise in 2019 and 2021, and we were elected to enact this measure. To that end, we are following through on this commitment to introduce a tax on the sale of new luxury cars and aircraft with a retail price of over $100,000 and on new boats priced over $250,000. The 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. Another example of our government's commitment to tax fairness is our proposed tax on non-resident, non-Canadian-owned residential real estate that is considered to be vacant or under-used. This tax would become effective as of January 1, 2022. While this tax would not be paid by individual Canadian homeowners, it would definitely 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 under-used housing tax would help support investments in housing affordability so that all Canadians could have a safe and affordable place to call home. Our recent budget introduced what may be the most ambitious plan to build new housing that Canada has ever seen, putting Canada on the path to double the number of new homes we build over the next 10 years. In conclusion, the federal government has been seized, and will continue to be seized, with how we can make life more affordable for Canadians and provide offsets to the impact of inflation. On behalf of the residents of Davenport, I want to express my thanks for the opportunity to speak today on this important opposition motion.
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  • Jun/7/22 1:05:26 p.m.
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Madam Speaker, I would say to the hon. member that I am very big on making sure that I stick to the facts, and I do not like to be accused of anything to do with misinformation or disinformation because that is never my intention. The climate action incentive is going to be increased in 2022-23. I do not have the exact number for Regina, but I know that in Manitoba a family of four will receive $832. I would also say to the member that, if Manitoba or any of the provinces that receive the climate action incentive now want to put their own decarbonization plan in place, they can choose to do so, and then the price on pollution would not apply to those respective provinces.
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  • Jun/7/22 1:07:18 p.m.
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Madam Speaker, I would say a couple of things. First, I am hoping the oil and gas companies are going to use some of those profits to start decarbonizing and help Canada move to a low-carbon economy. We need the private sector to be stepping up. The private sector has not been stepping up in recent years, and we really need it to do so. Second, with respect to the federal investment in carbon capture technologies, I would say that our federal government needs to be investing in as many technologies as possible in order to decarbonize, reduce our overall carbon emissions and meet our overall target of net zero by 2050. We all play a role. We have to look at all of the technologies and employ as many of them as possible.
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  • Jun/7/22 1:09:08 p.m.
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Madam Speaker, I do indeed support a guaranteed basic income or a guaranteed livable income. The world of work has changed. We have a social welfare system that was set up in the 1940s that does not easily meet the current needs of Canadians in the 21st century. I think a guaranteed basic income is something we need to look at very seriously as a new foundation to our social welfare system. I thank the member for the opportunity to allow me to speak to that today.
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