QUESTION PERIOD — Finance
2023 Fall Economic Statement
December 5, 2023
My question is for the government leader. The Canadian Federation of Independent Business, or CFIB, noted that in the Fall Economic Statement, the Trudeau government did not bring forward any measures to lower the tax pressure on small businesses. In fact, Dan Kelly from the CFIB said:
With the upcoming hikes in Employment Insurance and CPP on January 1 and the federal carbon tax and liquor tax on April 1, the government is increasing the affordability challenge for Canadians and small businesses.
Leader, why is the Trudeau government going forward with four tax hikes at such a difficult time for small businesses across Canada?
Thank you for your question.
The Government of Canada recognizes that many sectors of our economy, and many individuals within those sectors, are facing challenging times. We came out of the pandemic in pretty good shape compared to most other countries, but that doesn’t mean it didn’t take its toll. Businesses are still living with that, whether it is the shortage of materials, supply chain problems that still plague us or human resources issues.
That said, the Government of Canada — in its Fall Economic Statement and in all of its measures — is doing its best to find the right balance of prudent fiscal management in a time of economic contraction while still providing the support necessary. The Government of Canada continues to believe that its price on pollution is an appropriate policy measure.
It believes the rebates offered to Canadians, whether generally or in sectors, do in fact mitigate to some degree the effect of those.
I am talking about four tax hikes expected in the first few months of 2024.
We have heard the Trudeau government saying many times that they are an evidence-based government.
Leader, before deciding to hike taxes on small businesses in just a few weeks from now, did the Trudeau government conduct an analysis of how it will impact them? If not, why not? If so, could you table the analysis in this chamber?
Thank you for your question. It is my understanding that all matters of economic and financial policy, whether in this government, previous governments or, I imagine, in future governments, are done with an attention to data, to scenario planning, to assessments of what the consequence will be.
Again, the government took these decisions in an effort to strike the appropriate, responsible and prudent balance between expenditures and taxation measures and the like.
