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Decentralized Democracy

House Hansard - 107

44th Parl. 1st Sess.
October 4, 2022 10:00AM
  • Oct/4/22 10:44:06 a.m.
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  • Re: Bill C-30 
Madam Speaker, I am sure my colleague from Winnipeg North will agree with the Bloc Québécois that fighting inflation and avoiding a recession calls for sustainable solutions and intelligent measures. One-size-fits-all is not the answer. We definitely have to steer clear of measures that, although popular, or even populist, are not real solutions. Basically, we have to steer clear of measures designed primarily to win votes.
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  • Oct/4/22 10:44:53 a.m.
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  • Re: Bill C-30 
Madam Speaker, I would concur with the member from the Bloc. Inflation is very real; we know that. Whether it is what has taken place with the war in Europe or the pandemic, we recognize that around the world inflation is happening. Even though Canada is doing exceptionally well. When we compare us to the United States, England and Europe, our inflation rate has been lower, but that does not mean that we ignore it. That is why we have a Prime Minister, members of the Liberal caucus and others who are trying to develop and support ideas that would be targeted to ensure we are helping the people who need the help the most. In terms of people who are on fixed incomes, a 10% increase, to those who are 75 and over, on OAS is significant. I am talking about hundreds of millions of dollars. Bill C-30 and Bill C-31 would do exactly what it is—
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  • Oct/4/22 10:50:11 a.m.
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  • Re: Bill C-30 
Madam Speaker, I would like to congratulate the parliamentary secretary and his team on their achievement in delivering over 10% inflation on food to Canadians, which I am sure his constituents are quite pleased with. Most of it is due to the carbon tax. It goes in everywhere on the logistics chain, and it is compounded and then passed on to consumers. However, it has not reduced our emissions in Canada. In the U.S., there has been a reduction in emissions without a carbon tax. I wonder if the parliamentary secretary can explain to the House how that could be possible.
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  • Oct/4/22 10:51:00 a.m.
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  • Re: Bill C-30 
Madam Speaker, I guess the hon. member wants to remain focused on the Conservative spin with respect to what he calls the carbon tax or the price on pollution. I just do not agree with the question at all. One could do a comparison when he talks about a 10% increase on groceries. Canada is a vast country. Provinces, municipalities, the federal government: all of us have a contribution in terms of what our inflation rate is. Even the member for Abbotsford, I think, would have an appreciation of that fact. That is why we see variations of inflation rates across the different regions. To try to say that inflation is there only because of the price on pollution is just wrong. The member needs to get a more comprehensive understanding of why it is that we have inflation. I would encourage him to recognize two quick points. The first is that inflation is around the world and Canada is doing relatively well. The second is that the government is doing whatever it can to try to make life affordable for all—
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  • Oct/4/22 11:02:25 a.m.
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  • Re: Bill C-30 
Madam Speaker, I was listening carefully to the hon. member across the way and his description of what businesses are facing. The businesses in Guelph, across Canada and around the world are facing similar challenges around the supply side. What we have right now is supply-side inflation. The ability to bring product in or to have labour produce product is something all businesses are struggling with right now, which is causing the inflation we are seeing. The bill before us today is targeted to help young families support their young children with dental care. It is a very targeted measure that will not add inflationary costs. Could the member reflect on how this targeted program, with the GST and dental credits, is not going to stimulate inflation, which is being caused by the problems he described?
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  • Oct/4/22 11:06:14 a.m.
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  • Re: Bill C-30 
Madam Speaker, I would like to thank the member for Penticton in the South Okanagan for his excellent question. In fact, beer producers, liquor producers and wine producers in Mission—Matsqui—Fraser Canyon, like those in his riding, are wondering why, at this time of inflation, the government is putting yet an additional tax on them. There are thousands upon thousands of people who work in these sectors in British Columbia. All they want to do is have an honest go, go to work and make a product that people love. The government is making it harder for them to do that. I am glad to see that the NDP stands with the Conservative Party in opposing this tax measure, which is punitive against our producers.
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  • Oct/4/22 11:08:08 a.m.
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  • Re: Bill C-30 
Madam Speaker, I am pleased to rise today to speak to Bill C-30, the inflation bill, because I am deeply concerned about the financial state of my constituents in Coast of Bays—Central—Notre Dame. We all know that this piece of legislation will get passed, but in this place it is our job as His Majesty's loyal opposition to debate legislation and perhaps effect positive change to it when it goes to committee. The government has passed some extremely hurtful legislation since first being elected in 2015, when it had a budgetary surplus and inflation was at just 1.13%. The carbon tax was implemented as a result of hurtful Liberal legislation. It is set to triple since its inception, and it will keep on going. By 2030, nearly 50¢ per litre of carbon tax will be placed on fuel, and then with HST on top of that, Canadians will pay almost 60¢ more per litre for fuel than they paid when they voted for sunny days and sunny ways. When goods arrive at the back door of a grocery store and the invoice is given to the owner, there is a line at the bottom that says “fuel surcharge”, but it is not a one-time charge on our goods. Fuel price increases are passed on at every point in the logistics chain, so by the time goods reach the last link in the chain, the Canadian consumer, all of these inflationary fuel surcharges are reflected in the price of these goods. Therefore, we identify the carbon tax as a major cause of inflation to every single parent, every senior and every struggling family in Canada. By 2030, can members imagine the effect the carbon tax would have on Canadian households? What we see here today is just the tip of the iceberg. Yesterday, the government voted against our motion to stop increasing the carbon tax. Instead of that, once again, the government ATM machine is ready to add more inflationary fuel to the fire. I hear from my constituents on a daily basis that times were tough before, but now, after seven years of the government and its insatiable desire to spend, it is more difficult than ever to make ends meet. I heard from Julie, a single mother of two who is now unable to enrol her children in soccer because it will cost too much to drive them to games and practices. Under the Liberal government, according to statistics, transportation costs have risen 10.3%. I heard from Mary, a senior who is one of the 24% of Canadians cutting back on the amount of food they are buying because they cannot keep up with the rising cost of groceries. I would like to ask the Prime Minister this: When was the last time he stepped into a grocery store to purchase a week's worth of groceries? I do not actually believe the Prime Minister has ever bought groceries, so let me help to open his eyes. Groceries, some of the basic necessities of life, are up by 10.8%, rising at the fastest pace in 40 years. Fish is up 10.4%. Butter is up 16.9%. Eggs are up by 10.9%. God help us if we break one. Margarine is up by 37.5%. Bread, rolls and buns are 7.6.% more expensive than last year. Dry and fresh pasta is up 32.4%. Fresh fruit is up 13.2%. I heard from Kyle. Although he received a slight wage increase, he still cannot keep up. Why? It is because although on average wages have increased by 5.4%, inflation has increased by 7%. It does not take a doctorate in mathematics to know those numbers are not sustainable. However, wait. Not all is lost. The Liberals have come up with a plan. They are going to help combat inflation caused by overspending by spending more. Do not misinterpret my criticism of their plan as a lack of desire to help those who need it most, but let us take a look at how we got into this situation to begin with: The government spending money it does not have. How did the government get the money it spent? It borrowed it, and the Prime Minister continues to borrow more and more at higher and higher interest rates, which only causes higher inflation and the cost of everything to go up. Members do not have to take my word for it. Avery Shenfeld, chief economist at the Canadian Imperial Bank of Commerce, when asked about the Liberals' inflationary bill, stated in the Vancouver news: While there are times where fiscal largesse is just what the economy needs, these aren’t such times. In a period of high inflation and excess demand, cutting taxes or handing out cheques can add fuel to the inflationary fire, and make the job of a central bank that’s raising rates to cool demand all that more troublesome. In a recent news article published in Bloomberg, Mr. Robert Kavcic, senior economist with the Bank of Montreal, cautioned against new government support measures, stating, “We’re not going to deny that there are households seriously in need of help right now in this inflationary environment. But, from a policy perspective, we all know that sending out money as an inflation-support measure is inherently inflationary.” While the Prime Minister flies around the world in his private air accommodations, espousing the virtues of a green economy and warming up his vocal cords with a little rhapsody at his hotel lobby debut, hard-working Canadians here at home are tightening their belts and making tough choices. The average family of four is now spending over $1,200 more each year to put food on the table. This is not to mention the rising costs of heat, gasoline and rent. However, the Liberals' one-time support benefit is for $467. Who does this help? Individuals without children earning more than $49,200 or a family of four, a couple with two children, earning more than $58,500 would receive no benefits, and it certainly would not help Canadians who are not renting. By printing more cash, the government's inflationary spending does nothing to help Canadians who are struggling to make ends meet. Because of the Prime Minister's uncontrolled spending with borrowed cash at higher interest rates, all Canadians will feel the pain of more inflation and higher prices, making it harder for workers, families and seniors to make ends meet. For years, the Conservatives have warned the Prime Minister about the consequences of his actions and how much they hurt Canadians from coast to coast to coast. The GST rebate will provide welcome relief that the Conservatives support, but it will not address the real problem. Inflationary deficits and taxes are driving up costs at the fastest rate in nearly 40 years. To avoid adding costs to government, this side of the House proposes that the government look for savings in other areas to pay for its proposals. I do not stand here simply to criticize; I can also offer suggestions. For example, I fully support eliminating, and completely not allowing back, the ArriveCAN app. That would give us a cost savings of $25 million a year. Here is one the NDP should be able to get onside with: Let us scrap the $35-billion Infrastructure Bank to cancel corporate welfare programs that only help large and powerful companies. Families are struggling now more than ever and they need help. Bill from Grand Falls-Windsor is wondering how he will be able to heat his home this winter and keep food on his table. Let us ensure we do this right. Borrowing money to give this much-needed one-time help, in the long run, will do more harm and we will be right back here again. It is time to stop the vicious circle the government has created. Borrowing money to give to people who are struggling due to the high cost of living will only increase the cost of everything and drive up inflation. The Canadian economy has been thrown off a cliff, but unlike the Prime Minister when he bungee jumps, it does not have a bungee cord to stop it from crashing.
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  • Oct/4/22 11:17:55 a.m.
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  • Re: Bill C-30 
Madam Speaker, I was trying to follow the hon. member's train of thought around inflation and the causes of inflation. The previous speaker talked about the root cause being supply chain issues and labour issues. This bill was put in place to address helping the most vulnerable people in our communities. We know that in Atlantic Canada, many vulnerable people have been affected by Fiona and are looking for help in any way it can come. I was surprised that the hon. member would not want the government to help people on the lowest income scale and the ones who are the most vulnerable in our communities, thinking that would drive inflation. How does that square? I do not understand.
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  • Oct/4/22 11:18:46 a.m.
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  • Re: Bill C-30 
Madam Speaker, I know my hon. colleague does not agree with the Conservatives' stand on what is causing inflation, but I would like to take my colleague back to 2008, 2009 and 2010 when the world was reeling from a financial crisis. No one said then that it was a global problem. It was a global problem, but Canada sailed through it. Why should we have to be like the rest of Canada? If the current government was doing the job the government in 2009 was doing, we would not have this inflation problem. We could be an anomaly. Inflation is driven by the carbon tax.
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  • Oct/4/22 11:21:15 a.m.
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  • Re: Bill C-30 
Madam Speaker, it is not up to political parties to decide what is causing inflation. In a recent paper from the University of Calgary, economists found that three-quarters of inflation in Canada since the second quarter of 2021 has been driven by supply-side challenges such as food crops and oil production disruptions, for example. The GST credit top-up we are discussing from this bill would be received by low- and modest-income households, folks who would be using the additional benefit to purchase the same goods they would have otherwise already consumed. It is the same reason that investing in the Canada disability benefit would not be inflationary spending. Is the member for Coast of Bays—Central—Notre Dame aware of, and has he seen, this research?
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  • Oct/4/22 11:24:51 a.m.
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  • Re: Bill C-30 
Madam Speaker, behind all these numbers and causes, behind what we call inflation, the risk of recession and the economy, are human beings. I would propose taking a people-centred view or reading of what we experiencing as a result of this pressure, this crisis, this inflationary spike. First, the bill proposes—and it is very technical—to amend the Income Tax Act with a temporary enhancement to the goods and services tax and the harmonized sales tax credit. The bill effectively creates a new refundable and therefore tax-free tax credit of $229.50 for a single person, $459 for a couple, and $114.75 per dependent child. People will then receive a cheque. Obviously that is a good thing. I was saying earlier that we need meaningful solutions that are not strictly one-time measures. However, if they are, they need to be targeted in order to help the people who need them most, those who are struggling to make ends meet. To be eligible for the full amount, people have to have earned less than $39,826 in 2021. The cheque is reduced by 15¢ per dollar for people who earned more than that amount. In the end some 11 million people will have access to this measure. The Bloc Québécois obviously supports this bill. A rare consensus has emerged in the House to get this small measure passed. It should come as no surprise that the Bloc Québécois agrees with Bill C-30, since we included this measure in the budget expectations we sent to the Minister of Finance back in March. Inflation demands a comprehensive approach to the economy. What we need to avoid above all else is proposing simplistic measures that may look very interesting on the surface and fire up our collective imagination but that, in reality, are not sustainable or strategic for the economy. Since the pandemic, the Bloc Québécois has always been in favour of government intervention and support. However, while we did need to support the people who really needed it, the Bloc said very early on that the measures needed to be adjusted to avoid any negative effects. That is the same message we are sending the government about inflation. We want the measures to be adjusted so they are properly targeted, well thought out and intelligent. However, the document that was tabled, which proposes $100 billion in spending, is all over the map. It does not have the comprehensive approach and meaningful measures we advised. Statistics Canada has identified the factors behind the rapid increase in prices, such as food prices. These include ongoing supply chain disruptions, Russia's invasion of Ukraine, extreme weather and higher input costs. This situation calls not for one-time measures, but for long-term measures that will have a meaningful effect on the economy and provide predictability for people grappling with these ups and downs. Those are the kinds of measures that the Bloc Québécois is proposing to fight inflation. It is not enough to say that gas taxes must be cut. I am a consumer and, unfortunately, I still have a gas-powered vehicle. Naturally, I would be happy to stop paying tax on gas. As I am protected by parliamentary privilege, I will say that it seems like the price at the pump is fixed by some kind of cartel. There seems to be some collusion in that regard. I have never known oil companies to not turn a profit and not take advantage of all that. I even have the sense that there is enough fossil fuel for the next 50 years, but that they want to make us pay more because they know all this will end soon, given all the transitions that must be made. Bernard Landry was one of my mentors, and he told me that he would love to do this, but he was not sure the money would reach consumers. The government is getting richer as it collects more taxes on the higher prices. It should take this surplus and redistribute it intelligently, implementing targeted measures for people in need. I am not an economist, but I have learned that the last thing we should do in an inflationary period is unilaterally lower taxes. Not everyone needs that anyway. In addition, the government should use its surplus to rebuild the economy and insulate it from a future inflationary crisis or recession. It must invest in the parts of the economic system that will enable us to face the challenges of tomorrow. One of those challenges is the labour shortage. I will come back to that because what is really bothering me at this point is the fact that our seniors are the first to suffer from higher inflation. A society that cannot take care of its frailest, most vulnerable members is a society that is heading for disaster. Seniors no longer have an income or a salary that could increase. Their income is capped. They have a small amount of savings that is dwindling, causing them stress. As my mother used to say, people do not die of good health. We must therefore take care of these people, and those who are still able must be allowed to rejoin the workforce because there is a labour shortage. These are skilled workers, and if any of them are willing to go back to work, we should let them. It is going to take meaningful measures to fix this issue, and that is what I meant when I was talking about meaningful solutions. The Bloc Québécois has many to propose. I am now ready to take questions.
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  • Oct/4/22 11:35:49 a.m.
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  • Re: Bill C-30 
Madam Speaker, the member for Montcalm talked about seniors, and I was very touched to hear that. I also read an article just yesterday on how inflation was having a huge impact on the lives of retired seniors. The article basically talked about how they would have to come back to the workforce, because they realized their pensions were not enough. Inflation had driven up costs and the high costs of taxes are driving them out of retirement. I am interested to hear what the member has to say about those aspects and the reality of the carbon tax, not to mention the GST that is on top of that carbon tax. These huge costs are impacting seniors. Could the member expand on how these will have huge impacts not only on seniors in Quebec but across the whole country?
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  • Oct/4/22 11:53:00 a.m.
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  • Re: Bill C-30 
Madam Speaker, it is good to have a targeted measure for people who are truly in need, low-income Canadians and the most vulnerable. My colleague mentioned the central bank. I think that it is also important to point out that we must reaffirm our confidence in our institutions. That is very important. We heard many things from a new party leader, in particular that he wanted to abolish Canada’s central bank. It is sensible and perfectly normal to criticize the role of Canada’s central bank. We need to understand that, as an institution, it has succeeded in containing and maintaining inflation at a rate of 1% to 3% since 1991. Right now, however, we are facing the unknown, in terms of both supply and demand. Obviously, there are a number of external factors beyond the Bank of Canada’s control that are driving the rise in inflation. In this respect, we need to implement targeted measures, and the Bloc Québécois agrees. I hope that the government will learn how to take action when faced with a particular situation rather than waking up five months later as it is doing now.
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  • Oct/4/22 11:55:49 a.m.
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  • Re: Bill C-30 
Madam Speaker, as the member for Rimouski-Neigette—Témiscouata—Les Basques noted, inflation is not new. Canadians have been living with inflation and a cost of living crisis for the better part of the past year. Only now is the government taking some short-term measures that I would submit constitute nothing more than band-aid solutions. At the same time, while the government is handing out a few hundred dollars here in rent cheques, the government will be taking back with the other hand, from those few Canadians who will benefit, in the form of increased taxes, the tripling of the carbon tax and an increase in payroll taxes in the new year. Would the hon. member agree that what we have before us, with both Bill C-30 and Bill C-31, is nothing more than Liberal smoke and mirrors?
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  • Oct/4/22 12:33:22 p.m.
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  • Re: Bill C-30 
Mr. Speaker, I have a simple question for my colleague. Inflation was 6.9% in April when the government tabled its budget. The latest data show that it was 7% in August. Today, the government has suddenly woken up and decided to implement measures to counter inflation. My question is very simple: Why did the government wait five months after tabling the budget to propose concrete, meaningful measures to deal with inflation? Why did it not do it in April's budget?
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  • Oct/4/22 12:33:58 p.m.
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  • Re: Bill C-30 
Mr. Speaker, the hon. member speaks on economic policy. I think he would know that with inflation no one has a perfect handle, exactly. Its root causes are driven by a lot of different factors. Whether they are demographic, supply chain or government spending, there is a whole lot in it. When the government tabled its budget in the spring, it would have been looking at the situation and wondering whether that inflationary period was going to continue. It is clear that it is still hanging on right now. Notwithstanding that the work of the Bank of Canada to help bring down demand and inflation, we felt it was necessary at this point to put support measures in place. We do not want to overplay our hand. We do not want to pour fuel on the fire. Notwithstanding that the member would have liked to see even more support at that time, we think it is important to hold back some of that support until such time that it is needed. The government feels that right now is an important time.
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  • Oct/4/22 12:47:22 p.m.
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  • Re: Bill C-30 
Mr. Speaker, Canadian families from coast to coast to coast are dealing with the pressures of inflation when they are buying diapers, food and groceries of any sort. We know what those prices are. I definitely know them. What I can say is that our government has undertaken concrete measures, not only today but in the past. These include the Canada child benefit, which means more money flowing tax-free monthly to nine out of every 10 Canadian families; the Canada workers benefit, which gives up to $2,500 to working Canadians at the end of the year; the doubling of the GST credit; and cutting middle-class taxes, not just once, but twice. It will be literally billions of dollars returned. We are there and will continue to be there to help Canadian families, especially the most vulnerable. We will continue to make the middle class stronger in Canada and to assist those working hard to join the middle class.
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  • Oct/4/22 1:02:11 p.m.
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  • Re: Bill C-30 
Mr. Speaker, there is one thing the Conservative Party suggested to counter inflation: cryptocurrency. We learned in a recent Privy Council backgrounder that cryptocurrency offers no protection against inflationary shocks. This summer, cryptocurrency lost half of its value compared with the beginning of last year. I would like my colleague to explain why it is that his leader, the hon. member for Carleton, claims that cryptocurrency protects against inflation. Specifically, I would like to know whether my colleague really believes that cryptocurrency is protected from surges in inflation.
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  • Oct/4/22 1:02:59 p.m.
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  • Re: Bill C-30 
Mr. Speaker, I follow some of the financial markets, like my fellow colleague. I am not sure that members of the Conservative Party have said that cryptocurrency is going to solve inflation. If we say that Canada should be a destination for fintech revolution, I would welcome that. Let us remember what is happening around the world and why some people use cryptocurrency. We can look at countries like Venezuela and Argentina where inflation is incredible. Those people have turned to cryptoassets as a hedge against inflation. Yes, the amount has come down in some cases by 10% or 20% or even 30%, but if we look at what is happening to inflation in those countries we see that those people are losing purchasing power at upward of 50% in some years.
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  • Oct/4/22 1:05:20 p.m.
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  • Re: Bill C-30 
Mr. Speaker, I stand here in the House of Commons today in a very sheltered environment. Outside these walls there are many challenges. With the inflation rate now increasing to over 7%, we have seen in the last couple of months some of the highest inflation in the last 40 years. The Conservatives, over the last seven years, have warned the Prime Minister about where the end of the road is and what the consequences are of his tax-and-spend agenda. However, our warnings have gone unheeded. This is perhaps not surprising from a Prime Minister who does not think about monetary policy. Think about what that means, actually. The Prime Minister said this right before we headed into one of the biggest monetary disasters we have had in the last 50 years. He literally said that he does not think about monetary policy, which would later make single moms unable to feed their families and workers unable to put gas in their cars. It is unbelievable that he does not think about monetary policy. Perhaps he should think again. As we talk about Bill C-30, it is important to put some context around the bill, and we need to start with the relationship between the economy and the government. Oftentimes, I find they unfortunately get confused in this House. We must first, as our bedrock, ensure that the goods and services produced in this economy, the wealth and prosperity of this nation, are primarily the responsibility of our businesses and workers. It is through the delivery of those services and the production of goods that our country generates its value. When a company is able to produce more goods and deliver more services, or in other words increase our productivity, the prosperity of the nation increases. The secret of this, which is not often mentioned in this House, is that it is the most vulnerable who often benefit the most when the prosperity of the nation increases, and they suffer the most, as has happened in the last couple of years, when prosperity is under assault, this time by inflation. A country can produce a modest, temporary and artificial increase in economic performance through monetary policy and the printing of money. When the government spends and spends on a spending spree funded by the printing of money, there is an initial exuberance that results as Canadians see money coming into their bank accounts. However, this exuberance is quickly replaced by disillusion as they realize the cost of everything has increased and benefits are now replaced by the stubborn and corrosive impact of inflation, which continues. Once it is out of the box, inflation runs and runs, eroding savings, eroding wages and eroding the pensions of seniors. The true path to a more prosperous nation is not through the printing of money. It is through the creation of value. Specifically, we need to increase our productivity. When a nation can produce more goods and deliver more services more efficiently and effectively, it drives real value that increases the wages of workers and, dare I say it, increases the profits of businesses. It also creates jobs. Unfortunately, the government appears bent on doing everything it can to reduce the productivity of businesses and workers, and we see the result of seven years of Liberal governments. Food inflation is at over 10%. It is 10.8%, to be precise. That is causing real-life struggles. Outside the comfort and shelter of these walls, there are people who will go to bed tonight hungry, and probably many more people than in the last decade or two decades. That is because of the impact of a Prime Minister who does not think about monetary policy. Food inflation at 10.8% has caused a 20% increase in the last two years in the use of food banks. Think about that. Some 20% more Canadians are going to food banks now than did two years ago. In addition to that, 20% of Canadians have had to make changes in their diets. About 8% of Canadians out there are skipping meals. This challenge is not just for adults but for children. In fact, people who have children are now three times more likely to go to a food bank than those who do not. This is making life more difficult for all Canadians and the most vulnerable, and children are among them. It is not that Bill C-30 is a wrong step. It is just unfortunately too little too late, as it were. I will be supporting this legislation because it is going in the right direction, but let us look at, first, the fact that it is months behind when any type of relief was needed. Second, let us look at the quantum or the amounts of that. Keeping in mind the statistic that food inflation is up over 10%, it is increasing the amount that families spend on food by over $1,300 a year. This GST/HST temporary relief, according to the finance minister, who went before the committee, will create somewhere between $450 and $500 in benefits for the families that are eligible. However, as we have heard throughout this House, many are not. This is nowhere near the amount of relief needed. Ultimately, that relief will come from our workers and businesses, but they need to be empowered, not penalized. Thomas Sowell once famously wrote that he never understood why it is greed to want to keep the money we have earned but not greed to want to take money that other people have earned. That is a lesson the government needs to hear loud and clear. Some will say, and it was even in the news in the U.K., that tax relief is inflationary. I am here to say that when done correctly, it is not. In fact, it is the exact opposite of what happens when the government spends and is funded by debt or the printing of money. I will give four examples. When John F. Kennedy cut taxes in 1963, the inflation rate the year before a massive tax cut in post-world war United States was 1.2%. In the year after his tax cuts, it was 1.28%. When Ronald Reagan introduced in the United States a massive tax cut in 1981, it came into effect in 1982. In 1981, the inflation rate was 6.13%, and the inflation rate in 1984 was 4.3%. That is a decrease of 2% after massive tax cuts. Once again the Reagan administration cut taxes in 1986. In the year before, the inflation rate was 3.9%, and in the year after, it was 3.65%. When Prime Minister Harper reduced the GST, the inflation rate in 2007 was 2.1% and the inflation rate in 2009 was 0.3%. Inflation is not fuelled by tax relief. What is fuelled is our economy. We need to give more relief, and a great way to do it is to cancel the planned tax hikes that are coming into place. The government will triple the carbon tax by 2030, and starting this April, it will increase the taxation on nearly everything, which includes heating, gas and groceries. It is increasing the cost of everything. That, by definition, will increase inflation. When we see Canadians working hard and trying to save what money they can, and when we have food inflation at 10%, is the government's response to reduce taxation? No, it is not. It is increasing the tax on paycheques starting April 1, and a sizable number of taxes will be increased. This is not the time for this. In my estimation, it is never the time to increase taxes given our current rates, but this is certainly not the time, as it will drive inflation and make our economy less productive. When we look at what we need at the end of the day in order to solve this affordability crisis, we need to not drive artificial monetary policy through the printing of money, as we have seen what this can create. We do not need more government spending funded by the printing of money. We need our economy to increase its productivity. How we do that is by supporting our workers, empowering our businesses, supporting all Canadians, getting the government's hands out of their pockets and, instead, giving them a helping hand by reducing their burden in the future.
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