44th Parl. 1st Sess.
September 26, 2022 11:00AM
- Sep/26/22 2:33:07 p.m.
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Mr. Speaker, our focus on this side of the House is delivering real solutions for Canadians, which is why we are moving forward with a plan to double the GST credit for families that need it, moving forward on dental supports for low-income families that want dental care for their kids and moving forward with supports for low-income renters as well. These are things that we know will make a real difference in the lives of Canadians who are hurting. At the same time, budget 2022 included a temporary Canada recovery dividend and increased the corporate income tax on large financial institutions permanently. We will continue to stick up for all Canadians.
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Mr. Speaker, I certainly appreciate the candour of my hon. colleague opposite. We have a great working relationship on the agriculture committee.
There is a whole host of areas I could look at it, but what I want to reference is when the Deputy Prime Minister and Minister of Finance tabled her budget. There is a plan to undertake about nine billion dollars' worth of spending efficiencies that the government is hoping to accomplish. There is probably a number of areas where that could happen. We are talking about a budget, in normal times, that would be around $370 billion. I do not want to label any one specific program; I think that would be inappropriate. However, I think there is room for the government to look at measures on efficiency and to rein in spending, similar to what we are asking Canadians to do. We know this has been a challenging time.
We are going to do that responsibly. I will certainly look forward to the government's work on that. I am happy to take any suggestions if the member has some areas where he thinks that is particularly important.
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Mr. Speaker, I thank my colleague for her question.
The housing issue is a very complex one. The private sector and municipal and provincial governments must be part of the solution.
Of course, the Government of Canada has a role to play and must help by implementing certain programs. However, it is above all a municipal responsibility. To some extent, the problem is rooted in the labour shortage and the supply chain.
With respect to old age security, a $110-a-month increase for every senior is definitely possible. However, such a measure would cost $10 billion per year and per budget. I understand the importance of seniors, but at the same time, it is important to think about balancing the budget.
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Mr. Speaker, I will try to keep it short.
Those things are exactly what we did in this last budget, where we increased the expectations on banking and insurance companies. We expect them to able to contribute a bit more during this period, so we are doing some of the measures the member opposite is suggesting. I am not going to do it on a class warfare basis and criticize people who are successful. We certainly take the view on this side that we want to increase taxes on the super-rich in this country. That is what we have done, but we can do it in a tactful way instead of just attacking individuals and corporate entities across the board in this country.
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Mr. Speaker, I appreciate the opportunity to participate in today's debate on Bill C-30, the cost of living relief act, no. 1. As my colleague has already mentioned, inflation is a cause for concern for Canadians and their families. While inflation is definitely a global challenge, the impacts on Canadians are nonetheless real, which is why our government has been working directly to help Canadians have more money in their pockets.
Investments we have already made in the last two federal budgets and the new measures in today's legislation and in Bill C-31 will help Canadians who need it most. For example, the government's $12.1-billion affordability plan includes doubling the GST credit for six months, as proposed in Bill C-30. This would provide $2.5 billion in additional targeted support this year, to roughly 11 million individuals and families who already receive the tax credit. It will also enhance the Canada workers benefit at a cost of $1.7 billion in new support for workers this year to put up to an additional $2,400 in the pockets of low-income families. As well, there is a 10% increase to old age security for seniors over 75, which will provide up to $766 more for seniors. That will impact over three million seniors this year alone.
The affordability plan includes cutting child care fees by an average of 50% by the end of this year. Looking at the child care fees in my riding, for example, families are paying $1,800 a month per child, at least. When we think about it, a 50% reduction in fees means $900 back in the pockets of those families, not to mention that in some families, both parents do not go back to work. This, in essence, supports families in having two incomes. That is almost a mortgage payment for many families.
Dental care is another one that we have added to the affordability plan for Canadian families earning less than $90,000 a year, starting this year with hundreds of thousands of children under 12. That will obviously be extended to seniors and individuals with disabilities in years to come.
We also must remember that our affordability plan has indexed to inflation a number of benefits, including the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement. The federal minimum wage, which we increased to $15 an hour, is also indexed to inflation. Also, a $500 payment will go out to 1.8 million Canadian renters this year who are struggling with the cost of housing.
I want to talk a little bit about the housing challenges that we have experienced and some of the solutions. My colleagues have already eloquently touched on some of the aforementioned points, including the doubling of the GST credit for six months that is proposed in Bill C-30. I would like to focus my remaining time on the housing measures proposed in Bill C-31, introduced by the Minister of Health earlier this week, which is a critical component alongside Bill C-30 in making life more affordable for Canadians.
Our government believes that everyone should have a safe and affordable place to call home. However, that goal, one that was taken as a given for many previous generations, is increasingly out of reach for far too many Canadians. Young people cannot imagine being able to afford the house they grew up in. Rents in our major cities continue to climb, pushing people further and further away from where they work. All of this has an impact on our economy as well.
This is why Bill C-31 proposes a one-time top-up to the Canada housing benefit program that would consist of a tax-free payment of $500 to provide direct support to low-income renters. This payment would provide direct help to those most exposed to inflation and those who are experiencing housing affordability challenges. With the support of this House, the payment would be launched by the end of the year. Specifically, the benefit would be available to renters with adjusted net incomes below $35,000 for families, or $20,000 for individuals.
The Canada Revenue Agency would deliver the money through an attestation-based application process. In order to determine eligibility, the CRA would proceed with an up-front verification of the applicant's income, age and residency for tax purposes. Applicants would need to have filed their 2021 tax return and provide information and attest that they are paying at least 30% of their adjusted net income on rent, are paying rent for their own primary residence in Canada, which would include the address of the rental property, the amount of rent paid in 2022, and the landlord's contact information, as well as consent to the CRA to verify their information to confirm eligibility.
It is estimated that 1.8 million low-income renters, including students, who are struggling with the cost of housing would be eligible for this new support. In total, the proposed funding will be $1.2 billion, of which $475 million were committed in budget 2022. This is a one-time top-up and would not reduce other federal income-tested benefits, such as the Canada workers benefit, the Canada child benefit, the GST credit and the guaranteed income supplement.
That is not to say this is our only measure that impacts people who are having affordability challenges with housing. The one-time top-up is part of a broader set of initiatives introduced in budget 2022, indeed probably the largest chapter in the federal budget, that will provide more than $9 billion to help make housing more affordable, including by alleviating the supply shortages that are one of the main causes of the high price of housing. These are measures that will put Canada on the path to double our housing construction over the next decade, including with a new multi-billion dollar housing accelerator fund.
Our government has a comprehensive plan to make housing more affordable by both funding and incentivizing new builds and by helping people get into the housing market.
We are, for the first time, directly tying federal funding for infrastructure in transit to a requirement for municipalities to approve the building of more homes. All of this is in addition to further investments in affordable housing, the building of new social housing units and an additional investment of half a billion dollars to help end homelessness.
While no government can solve the challenges of affordability overnight, we remain hard at work to address the cost of living and set Canadians up for greater success. We are also doing so by laying the foundation for longer-term economic growth.
What today's legislation means is that most of our most vulnerable in Canada will receive more financial support now and, when combined with other measures in our affordability plan, will continue to receive new support in the weeks and months to come.
For the Canadians who need it most, this will make their lives more affordable exactly at the right time. This is why I strongly encourage all members of the House to support Bill C-30.
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