SoVote

Context: House Hansard - 300 - Apr/16/24

Hon. Anita Anand (President of the Treasury Board, Lib.)

Apr/16/24 2:22:26 p.m.
Watch

Mr. Speaker, in this budget, like all others, we will take into account the economic context as well as the needs of Canadians. That means, for millennials and gen Z as well, we will unlock supply in housing, we will ensure there are supports for renters and we will make sure there is a national school food program. On this side of the House, we will make sure we do that while maintaining a strong fiscal position, AAA credit rating and the lowest debt-to-GDP ratio in the G7. Slogans do not make good policy.

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Context: House Hansard - 300 - Apr/16/24

Hon. Anita Anand (President of the Treasury Board, Lib.)

Apr/16/24 2:31:58 p.m.
Watch

Mr. Speaker, I am not sure if the hon. member is aware of this, but our fiscal markers are very strong. That is a AAA credit rating by an independent, objective observer. That is the lowest debt-to-GDP ratio in the G7. All the while, we will continue to support vulnerable Canadians, something they refuse to do on the other side of the House. They vote against $10-a-day child care, families and seniors every single time. The hypocrisy is palpable.

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Context: House Hansard - 300 - Apr/16/24

Hon. Chrystia Freeland (Deputy Prime Minister and Minister of Finance, Lib.)

Apr/16/24 4:24:38 p.m.
Watch

It took an activist, determined Liberal government to get it built. Last week, the Bank of Canada estimated this project alone will add one-quarter of a percentage point to Canada's GDP. As we invest with purpose for the benefit of our younger generations and those who love them, we continue to stick to a responsible fiscal plan. As part of that plan, in the fall, we set three very specific fiscal guideposts: maintaining the 2023-24 deficit at or below $40.1 billion; lowering the debt-to-GDP ratio in 2024-25, relative to the 2023 fall economic statement, and keeping it on a declining track thereafter; and maintaining a declining deficit-to-GDP ratio in 2024-25 and keeping deficits below 1% of GDP in 2026-27 and in future years.

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Context: House Hansard - 300 - Apr/16/24

Hon. Chrystia Freeland (Deputy Prime Minister and Minister of Finance, Lib.)

Apr/16/24 4:26:42 p.m.
Watch

In this budget, every single one of these objectives is being met, as is our fiscal anchor, which is a declining federal debt-to-GDP ratio over the medium term. In fact, Canada has the lowest deficit and net debt-to-GDP ratios in the G7, as recognized in our AAA credit rating. Private sector forecasters are now predicting a soft landing for the Canadian economy—avoiding the recession and heartbreaking surge in unemployment that many had thought was inevitable. Canadians know how important it is to responsibly manage a budget in the face of rising costs, and they rightly expect their government to do the same. That is why, going forward, federal public service organizations will be required to cover a portion of increased operating costs through their existing resources. Most of these savings will be achieved through natural attrition in the federal public service. As a result, over the next four years, we expect the ranks of the public service to decline by approximately 5,000 full-time equivalent positions. To responsibly build a fairer future for younger Canadians, we need to make sure our tax system is fairer too. In Canada and around the world, the 21st century, winner-takes-all economy is making those at the very top richer, while too many middle-class Canadians are struggling just to avoid falling behind. The job of our tax system is to lean against this structural inequality and to fund investments in the middle class, especially in young Canadians, by asking those who are benefiting from the winner-takes-all economy to pay a little more. Today, our tax system does not do that. Today, it is possible for a nurse or a carpenter to pay tax at a higher marginal rate than a multi-millionaire. That is not fair. That must change, and it will. Our government is raising the inclusion rate to two-thirds on annual capital gains above $250,000 for individuals. This new revenue will help make life cost less for millions of Canadians, particularly millennials and gen Z. It will help fund our efforts to turbocharge the building of more homes. It will support investments in growth and productivity that will pay dividends for years to come. Who will pay more? Most Canadians have no capital gains in a typical year, so they will not pay more. The first $250,000 in capital gains every single year enjoyed by each individual Canadian will be taxed at the current rate. Individual Canadians enjoying this substantial annual gain will not pay a penny more. The lifetime capital gains exemption, an amount fully exempt from taxation, will be raised to $1.25 million, and this change will not, of course, apply to the sale of Canadians' principal residence, which is and will remain fully exempt from the tax on capital gains. Only 0.13% of Canadians with an average annual income of $1.4 million will pay more on their capital gains. For 99.87% of Canadians, personal income taxes on capital gains will not increase. Taxing capital gains is not an inherently partisan idea. It is an idea that everyone who cares about fairness should support. In fact, the idea of taxing capital gains in Canada was first broached by the government of former prime minister John Diefenbaker and his Royal Commission on Taxation, which was chaired by Kenneth Carter, and former prime minister Brian Mulroney raised the capital gains inclusion rate to 75%, higher than the rate we are establishing today.

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Context: House Hansard - 300 - Apr/16/24

Mr. Jean-Denis Garon (Mirabel, BQ)

Apr/16/24 4:44:22 p.m.
Watch

Mr. Speaker, the minister just tabled a centralizing budget with a view to interfering in Quebec's jurisdictions. These are new encroachments on education, municipal zoning and health, new conditions on housing, conditions for child care, and new infringements on property tax. Does the minister realize that these intrusions that use the federal power to spend, demonstrate that the fiscal imbalance is preventing the National Assembly of Quebec from acting freely in its own areas of jurisdiction?

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