44th Parl. 1st Sess.
September 29, 2022 10:00AM
- Sep/29/22 4:16:50 p.m.
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Mr. Speaker, I will be splitting my time with the member for Lethbridge.
I am happy to be here today supporting our opposition motion, which states:
That, given that the cost of government is driving up inflation, making the price of goods Canadians buy and the interest they pay unaffordable, this House call on the government to commit to no new taxes on gas, groceries, home heating and pay cheques.
I want to bring the voices of my constituents from Kelowna—Lake Country to Ottawa, not the other way around. Over many months this year, I have sent out several surveys to hear how people are struggling with the government's 40-year-high inflation. I had thousands of responses. Robyn in Lake Country said, “People can't afford to eat, to get to work, to take care of the basics for their families in this economy.” Rollie in Kelowna wrote that the government must “slow down on their spending. They're putting people in the poor house. It's a real shame.”
Tax relief is what my constituents are asking for, and the vast majority agree. With the record gas prices we are seeing today in British Columbia, that relief is more desperately needed than ever.
Recently, as a member of the industry committee, I questioned Aaron Wudrick, director of domestic policy at the Macdonald-Laurier Institute. In response to my questioning about Canada's regulatory burden, high taxes and expensive housing affecting young adults, Mr. Wudrick said, “In short, they're discouraging.”
I agree with his assessment, especially after speaking with many young people in Kelowna—Lake Country and across B.C. over the summer. They feel hopeless. They feel hopeless when seeing the value of their paycheques decline, hopeless in finding the money they need to start a business and hopeless in finding an affordable apartment, let alone ever dreaming of owning a home of their own.
International students often pursue education in high-demand fields. They have lost hope in being able to afford to live in Canada. We have a labour crisis in everything from health care to farming to tourism. The government's high-spend, high-cost agenda will see us lose their ingenuity and entrepreneurship.
A recent Leger poll showed that 46% of young immigrants say they are now less likely to stay in Canada. When asked why they would not recommend Canada to future immigrants, the top two reasons given were the cost of living and the current government.
Higher taxes are not the solution either. How do we know? It is because under the last Conservative government, we oversaw the lowest federal tax burden in over half a century, nobody needed to wait month after month for passport renewals past deadlines and homes were half the price. Furthermore, it should come as no surprise that new taxes, as well as presently automatic tax increases, would have a significant impact on small business owners.
As the shadow minister for small business recovery and growth, I have had the opportunity to speak with numerous workers and owners of small businesses in Kelowna—Lake Country and across the country to hear their perspectives, the challenges facing them and what needs to be done, or not done, by the federal government to allow them not just to survive but to succeed. We have a 40-year-high inflation rate, labour shortages, supply chain issues, increasing business debt and federal tax increases on businesses, and they are already increasing costs at an unmanageable level for small businesses.
Small businesses have been hit particularly hard as a result of the volatile open-and-shut cycle over the last two and a half years, with 54% of businesses still reporting below-normal revenues. About 62% of small businesses are still carrying debt from the pandemic, according to the CFIB. It also notes that small business insolvencies are on the rise, with a reported one in six businesses considering closing their doors. Downtowns and business districts have been hollowed out, with small businesses in those areas struggling to even keep their doors open given limited customers.
I spoke to a BIA organization this week, a business improvement area organization, that often represents main streets. It is saying that now the heart of some of its issues deal with mental health and addiction crises. It also said its members are burdened with debt. They are having a very challenging time.
Many are barely hanging on. It is nothing short of cold-hearted to increase multiple taxes that would further hit their bottom lines. I know what a small business owner is going through, as I have been one myself. Small business owners have not forgotten the 2017 Liberal-proposed tax changes that party attempted to ram through on small businesses, which would have been devastating to entrepreneurship in our country. These tax changes would have had “significant, unintended effects on all SMEs, particularly middle-class, family businesses.” Those are the words that came from the Greater Vancouver Board of Trade back in 2018.
Thanks to the advocacy of small businesses, chambers of commerce, BIAs, boards of trades and Conservatives pressing the issue day in and day out, the government finally backed down. This just shows the government's mindset.
What are the main taxes that are going up soon? We have the payroll tax, the excise tax and the carbon tax, which affects the cost of everything. Dan Kelly at the CFIB put it well recently in explaining why a payroll tax is, in fact, a tax. As he put it, “1. They are mandatory, with penalties for not paying. 2. While there are benefits that come back to some of those paying premiums, they are not proportionate to the amount paid. 3. For the business that pays 60% of EI & 50% of CPP costs, they are unquestionably payroll taxes as the benefits are for workers, not employers.”
Regardless of what the government says and tries to obfuscate, even the Prime Minister has called these payroll taxes, and many other Liberals have as well. These taxes are going up every year, hitting the paycheques of workers and the bottom lines of small businesses, and should not be increasing during a time of 40-year-high inflation.
The excise tax is an escalator tax, which is a fancy bureaucratic word for “automatic”. It is a tax that does not have to come to Parliament to increase. It automatically goes up. The excise tax is on beer, wine, ciders and spirits. These industries raise concerns about this every year while the government ignores them, and 95% are small businesses.
Every year these taxes go up automatically, hitting our local producers with more taxes, as well as the retailers and restauranteurs who buy these products and who then have to pass on the price to people who buy them. This ultimately adds further to inflation. As Restaurants Canada said, the government introducing the automatic escalator in 2017 “made an already bad situation worse” for restaurants.
Recently at the industry committee, we heard from Beer Canada, which called excise tax increases “counterproductive and harmful” to their sector, and “simply not sustainable over the long term.” Let us not forget this escalator is tied to the CPI and, therefore, inflation, meaning it will go even higher next year, adding more to inflation. It is set to increase again on April 1.
On the carbon tax, after the government said it would cap it at $50 a tonne, it is now planning to bring it up to $150 a tonne, more than three times what was initially promised and at a rate that small businesses are still disproportionately paying into without the appropriate rebates to offset it. Carbon tax increases make the cost of fuel, food and goods shipped anywhere more expensive.
It is time for the government to recognize that adding taxes only increases costs and inflation. The government has provided no solutions to address inflation itself, and now, on top of 40-year-high inflation and interest rate hikes, small businesses' bottom lines are being further squeezed with higher costs for imported goods due to the Canadian dollar falling to the lowest point in almost two years.
Stop the pain. Stop the tax increases.
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- Sep/29/22 4:27:03 p.m.
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Mr. Speaker, the point is that people cannot afford food right now. They cannot afford to put fuel in their vehicles. We have reports of students living in homeless shelters. We know that the stats for food banks are up across the country. This is the state we are in right now. People cannot even afford their basic necessities. Now is not the time to increase anything, during this 40-year-high inflation, that will further stop people from being able to afford even the basic necessities.
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- Sep/29/22 4:28:26 p.m.
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Mr. Speaker, as of today and tomorrow, we still have vehicles that are transporting food to grocery stores. We still have vehicles that are going across this country transporting all the goods we buy every day when we go out to all of the stores. That is the reality we have right now. People use their vehicles to take their kids to school and to all the sports, recreation and arts they do. Those are the vehicles they are using today. It is really unrealistic to say people cannot go anywhere, go to work or go to the grocery store. The cost of everything they are buying just keeps going up. It is unrealistic and it is out of touch.
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- Sep/29/22 4:30:01 p.m.
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Madam Speaker, I am sorry that I am stuck on talking about small businesses, which are actually the backbone of our Canadian economy and the backbone of communities all across the country. Right now, with the situation we are in, and I talked a lot about small businesses, they are experiencing crushing debt. They cannot even afford to pay some of their bills.
While the member is chirping at me and not allowing me to answer, small businesses are in a situation right now where one in six are considering closing. That is the reality. That is the situation they are in. Now is not the time to be increasing any taxes that affect people and small businesses.
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