Hon. Alice Wong, P.C.

On May 3, 2016, Alice Wong asked a question in the House of Commons on the topic of Taxation.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, we know the Liberals love to talk about facts, so let us look at some facts. Their decision to abandon tax cuts for small businesses will cost the industry $2.2 billion over the next four years. I repeat: $2.2 billion. The more we learn about the Liberals’ so-called commitment for small businesses, the more we realize that there is no commitment at all.

When will the Liberals deliver their promised 9% tax cuts?

Ms. Gudie Hutchings (Parliamentary Secretary for Small Business and Tourism, Lib.):
Mr. Speaker, I thank my hon. colleague for the question. We know that the small business tax rate is there to help companies grow and create jobs, but we need to make sure that the small business tax system is fair and being used appropriately. The loophole is allowing far too many people to use this rate to get out of paying personal income taxes that the rest of us pay each and every year. This loophole is costing taxpayers over $500 million a year. We need to fix the problem so that those using the small business tax rate are the small business owners who are creating jobs for our communities.

The following is a transcript:

The Liberals have released their 2016 federal budget. Unfortunately, it offers very little for Canada’s small businesses except higher taxes. For instance, they’re scrapping their promise to stay on schedule to reduce the small business tax rate to 9%. They’re also cancelling the hiring credit for small business and increasing payroll costs. Small businesses are essential to Canada’s economy. But instead of helping job creators, the Liberals are raising their taxes. Conservatives have a strong record of keeping business taxes low. We’ll continue to push the Liberals to follow our lead and help small businesses in Canada.

On April 18, 2016, Alice Wong asked two questions in the House of Commons on the topic of Small Business.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, last week the Minister of Small Business and Tourism told us to look at the budget with regard to small businesses, so let us do that.

The fact is the Liberals dismissed recommendations from the finance committee and ignored recommendations from small business owners. The minister claims to be working with stakeholders, but recent history shows there is no sense in trusting what Liberals say.

When will the minister stop hiding behind empty promises and stand up for small business owners?

Hon. Bardish Chagger (Minister of Small Business and Tourism, Lib.):
Mr. Speaker, I have been working closely with small business owners and stakeholders across this nation. Since being put in this post, I have met with almost 250 stakeholders, small business owners, and the people who work hard for them. Our budget actually supports small businesses.

We are listening to Canadians. We are listening to small business owners. That is what we will continue to do.

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, the minister’s mandate letter tells her what her priorities are. One of them is, “Work with the Minister of Finance as the small business tax rate reduction is implemented”.

Could the Minister of Small Business and Tourism explain why the finance minister ignored her and instead raised taxes on small businesses?

Hon. Bardish Chagger (Minister of Small Business and Tourism, Lib.):
Mr. Speaker, this government is taking a whole-of-government approach. We work very closely with each other. Part of working together is listening to each other and engaging in difficult conversations.

I work closely with the Minister of Finance. We have consultations and discussions every day. We are not just listening to each other, we are listening to Canadians and small business owners, because we need to ensure that they have the robust economy that they need, and that is what we will do.

On April 14, 2016, Alice Wong made a statement in the House of Commons on the Vancouver International Airport.

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, located in my riding of Richmond Centre is the Vancouver International Airport, most commonly known as YVR. The year 2015 was a milestone year for the airport, having served more than 20 million passengers in a single year, with plans to increase service to 25 million travellers per year over the next five years.

Indeed, there was another milestone at YVR last year, and that was the opening of the McArthurGlen designer outlet, the first of its kind in North America. This will attract even more tourists and local consumers to Richmond.

It is my privilege to serve a riding that hosts a global leader in excellent transportation service and continues to be a vital link for travellers within Canada and beyond.

On April 13, 2016, Alice Wong asked two questions in the House of Commons on the topic of Taxation.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, the Liberals love to make promises to Canadians, only to turn around and change their minds.

Instead of encouraging jobs and hiring, the Liberals have increased payroll taxes and EI premiums for small businesses. This does not affect just small business owners but also the millions of Canadians who work for them.

When will the Liberals stop killing jobs with higher taxes?

Hon. Bardish Chagger (Minister of Small Business and Tourism, Lib.):
Mr. Speaker, once again, we have lowered taxes on small businesses; we have lowered taxes on middle-class Canadians. We are working with Canadians to ensure that we have a strong economy and that we create jobs. Budget 2016, which I encourage the member to read in its entirety, makes many investments, including $11.9 billion in infrastructure spending, which will help small businesses, and $500 million for broadband in rural and remote areas.

I see the Speaker’s hand is waving, so I will stop, but the list goes on. I am thankful for the opportunity to stand to say how we are working with small businesses.

The Speaker:
I guess I had better help members by letting them know that when I start doing that, it means they have 10 seconds and counting. I would ask them to keep that in mind.

The hon. member for Richmond Centre.

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, one thing is very clear: Liberals think borrowed money will somehow magically create jobs. Small businesses understand that jobs come from hard work and responsible spending. The Canadian Federation of Independent Business president Dan Kelly said, “Small business owners know that today’s deficits are tomorrow’s taxes”.

Why are the Liberals taxing job creators to pay for their reckless spending?

Hon. Bardish Chagger (Minister of Small Business and Tourism, Lib.):
Mr. Speaker, what I have said in the House before is that saying it does not make it true.

Let us look at the facts. We are working with small-business Canadians. We are working with the Small Business Matters Coalition. We are working with stakeholders. There are 3.2 million Canadians whom we are representing on this side of the House. We are working with the Canadian Federation of Independent Business and Dan Kelly himself. I have met with him and will continue to work with him.

We will continue to represent small businesses, and I encourage the member opposite to take some time to meet with me as well.

On April 12, 2016, Alice Wong asked two questions in the House of Commons on the topic of Taxation.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, under the Liberals’ job-killing budget, they are raising taxes on small businesses and their workers. They reversed the Conservative tax cut for small businesses, raised payroll taxes, and now the top tax bracket in over half of our provinces will be more than 50%.

When will the Liberals stop raising taxes on workers and job creators?

Hon. Bill Morneau (Minister of Finance, Lib.):
Mr. Speaker, I would encourage the member opposite to read our budget. If she goes back to January, when I believe she was in the House, she will see that we lowered taxes on nine million Canadians. What she will find is that this year small business taxes actually have gone down. What the member will also find is that the nine out of ten families with children who will get the Canada child benefit will have an average of $2,300 more. This will help small businesses.

This is a budget that will help Canadians and Canadian businesses to be more successful.

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, the Liberals claimed to consult with businesses and workers, but as we saw in the budget, they broke that promise too. The Liberals even ignored their own members on the finance committee by raising taxes on small businesses. This should come as no surprise after the Minister of International Trade said “Amen to raising taxes”.

How can Canadians trust the tax-and-spend Liberals when they break promises to their own members?

Hon. Bill Morneau (Minister of Finance, Lib.):
Mr. Speaker, let us start with understanding that we had more pre-budget consultations than in the history of the country will ever have.

Let us move forward with a very clear understanding that we reduced taxes on nine million Canadians. Let us move forward one more step by understanding that we helped small businesses across the country by helping their customers and clients.

This is a budget that will help Canadians, families and businesses. It will grow our economy over the long run.

On March 24, 2016, Alice Wong asked two questions in the House of Commons on the topic of Small Business.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, the Liberals broke their promise to business owners by suspending the tax cut to small businesses.

On December 11, the Minister of Small Business and Tourism stood in this House and stated:

I will be working closely with the Minister of Finance to ensure that our commitment to lower the tax burden on small businesses is fulfilled.

Why did the minister decide to flip-flop and lobby her own government for higher taxes?

Ms. Gudie Hutchings (Parliamentary Secretary for Small Business and Tourism, Lib.):
Mr. Speaker, I would like to remind my hon. colleague of the list of items that I just read off to help small businesses.

We do understand the impact to small business. We understand that they represent 90% and contribute over 40% of our GDP. That is why we are working hard with them to ensure they can avail of all the programs and initiatives that we announced in our budget that we are proud of. We will work with small and medium-sized businesses from coast to coast to coast to ensure they get the support they need going forward.

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, the Liberals misled Canadian small businesses. They said one thing and did the other.

Conservatives believe that the best way to help small businesses is trade, training, and tax cuts. Instead, the Liberals are killing small businesses with taxes, taxes, and more taxes.
When will the Liberals stop raising taxes on job creators?

Ms. Gudie Hutchings (Parliamentary Secretary for Small Business and Tourism, Lib.):
Mr. Speaker, I would like to remind my hon. colleague of another initiative we had in our budget that we are very proud of, which was the increased marketing money for Destination Canada, increasing it by $50 million.

We know that most of these tourism industries are small and medium-sized businesses. What that $50 million is going to do is bring more customers to them, driving across our new roads and bridges too, I might add.

Some hon. members: Oh, oh!

Ms. Gudie Hutchings: The investment in Destination Canada is going to have a huge impact from coast to coast to coast in our tourism industries.

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French Press Release (.PDF)

LIBERALS BREAK ANOTHER PROMISE ON SMALL BUSINESSES

Liberals decide to raise taxes on Small Business

Richmond, BC – Alice Wong, Member of Parliament for Richmond Centre and critic for Small Business, gave the following remarks after the introduction of the 2016 Federal Budget:

“The Liberals campaigned on a promise to see the small business tax rate decrease from 11% to 9%[1] and instead they have stopped this tax cut – a tax cut that the Minister for Small Business and Tourism claimed she would ‘…be working closely with the Minister of Finance to ensure that our commitment to lower the tax burden on small businesses is fulfilled.’[2]

Indeed, the small business tax cut was promised in the Liberal 2015 election platform, and this promise was broken, in addition to the pledge to keeping the deficit under $10 billion.

Businesses thrive on stability and after Budget 2016, all they can count on is fiscal uncertainty.  Which taxes is the government going to increase next to pay for their bloated deficits?”

Other small business stakeholder groups have negatively commented on Budget 2016’s impact to small businesses.

Dan Kelly, President of CFIB, stated that, “Other than some infrastructure spending, there is nothing in this budget that will help any small firm create even one job.” [3]

In conclusion, this reflects yet another Liberal promise broken, and a government that is choosing to turn its back on the small business job creators in Canada.

For inquiries, contact:
Office of Hon. Alice Wong, MP (Richmond Centre)
alice.wong@parl.gc.ca
613-995-2021

[1] Page 80, Liberal 2015 Election Platform

[2] December 11, 2015 (spoken in the House of Commons)

[3] March 22, 2016 CFIB News Release, “2016 budget breaks election promise to small business”

On March 8, 2016, Alice Wong asked a question about Small Business during question period.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, for weeks the Liberals have been giving mixed signals and dodging questions about small businesses and the new job killing start-up tax. Some days they want to increase taxes for everybody, and some days they only want to raise taxes on small business owners.

When will the Liberals abandon their job killing start-up tax?

Hon. Bardish Chagger (Minister of Small Business and Tourism, Lib.):
It is the opposite, Mr. Speaker. This government supports small and medium-sized businesses. We are committed to helping them grow. We are committed to helping them innovate, to become more productive and to become expert oriented. We have launched the Canexport program, which has received a wonderful response.

This morning, for International Women’s Day, I was with Startup Canada for its women’s day breakfast, and I met a young entrepreneur, a girl in grade 5, by the name of Frankie. She and her friend started up a business.

The spirit of entrepreneurship is here. This government recognizes that small businesses are job creators and will grow the economy.

On March 7, 2016, Alice Wong spoke in the House of Commons regarding second reading of Bill C-2, An Act to amend the Income Tax Act.

The following is a transcript:

Hon. Alice Wong (Richmond Centre, CPC):
Mr. Speaker, there are two provisions to Bill C-2. One is the reduction in the annual limit one can deposit into a tax-free savings account, and the other is a reduction in the second income tax bracket while increasing the top tax bracket. I will begin my discussion with the tax-free savings account.

The TFSA was introduced in the 2008 federal budget, back when the late Jim Flaherty was the minister of finance. Canadian families were able to invest their after-tax dollars and earn income tax-free through their TFSAs. TFSAs can be used to invest in all sorts of eligible financial products, whether they are GICs, mutual funds, or stocks and bonds, to name a few. Canadians were already taxed once on their income. The TFSA allows them to earn income on their savings without having to be taxed again. Unlike RRSPs, the TFSA alleviates the risk that governments will change the tax rates, as withdrawals from the TFSA are not taxed.

It is not surprising, especially with the Liberals set to increase taxes in the upcoming budget, that Canadians at all income levels are choosing to invest in TFSAs. The Liberals would like nothing more than to get their hands on the savings of Canadians. Simply put, the country benefits from Canadians saving their hard-earned money, and the TFSA allows them to do so. We should be encouraging saving and not discouraging it, as Bill C-2 will do.

The previous Conservative government was able to increase the TFSA contribution limit because our last full fiscal year in government was in surplus. The Auditor General confirmed this. Indeed, the Minister of Finance’s own department, in the monthly “Fiscal Monitor” publication, showed that in the first nine months of the current fiscal year ending in December, Canada’s budgetary surplus was $3 billion. Now the Liberals are choosing to squander this surplus and plunge us into massive deficits, including with Bill C-2.

I will now bring my attention to the second part of Bill C-2, which is the proposed adjustment of the income tax brackets. Since I was elected to the House of Commons in October 2008, the rates for the federal tax brackets have not changed. There is a 15% bracket, a 22% bracket, a 26% bracket, and the top bracket of 29%. With this stability, Canadians can reliably predict how much income tax they would be paying.

The new Liberal introduction of a higher tax bracket would create a situation where top-paid and top-performing professionals in Canada will be discouraged from working further and encouraged to look into ways of legally reducing their taxable income levels. In particular, I would like to point out that when we add together the combined federal and provincial marginal tax rates, Canadians who live in over half of our provinces will be paying a top combined tax rate of over 50%. These provinces include Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, and Prince Edward Island. This means that people in the top tax bracket will be paying the government more than half of their income for each extra dollar they make.

Does anyone in the House believe that these individuals will be seeking to earn more money when they will be paying more than half of their income in the form of income taxes? We should be encouraging Canadians to work hard and earn more money. This income tax change will have the opposite effect for those highly paid professionals who qualify for the top income tax bracket. There will be a point when people will choose to work less because the money they earn will simply be given to the government. Indeed, I foresee the only growth in high-paying jobs resulting from Bill C-2 will be of tax accountants, who will be finding ways to reduce the income tax burden on highly paid professionals. That was maybe the Liberal plan after all.

Speaking of Liberal plans, the other fact that the Liberals promised in their election platform is that the reduction of the second tax bracket will be paid for by the increase in taxes in the top tax bracket. Subsequent projections from the Department of Finance have indicated that Bill C-2 will not be revenue neutral but will put us further into deficit.

Indeed, our previous government’s election commitments, including an increase to the TFSA annual contribution rate, were contingent on balancing the budget. Not only have the Liberals squandered the surplus, but they are implementing changes that were clearly from incorrect premises.

In summary, Bill C-2 is wrong for Canadians. I will be voting against it in its current form.