New Finance Minister Joe Oliver says the federal government will “give even more tax relief” to Canadians once the budget is balanced, but remained vague on whether income-splitting remains on the table.
MPs returned to the House after a two-week constituency break Monday, marking Oliver’s first question period since being sworn in as finance minister last week.
The NDP grilled Oliver on whether he remains committed to the Conservatives’ pledge from the 2011 election campaign to extend income splitting beyond senior citizens. They promised to allow married couples with children to share up to $50,000 for income tax purposes per year once the budget is brought back to balance. The government projects a budget surplus next year.
Former finance minister Jim Flaherty had recently mused publicly that the government should reconsider the policy because it won’t benefit a large number of Canadians.
“The previous minister of finance was also not much of a fan of the Conservative income splitting scheme. He publicly cast doubt on the ‘benefits to our society,’” Nathan Cullen, the NDP’s new finance critic, said in the House.
“I’m sure the new finance minister’s friends on Bay Street love the plan, but the reality is that for over 85 per cent of Canadians, they won’t see a dime. So why does the finance minister side with the wealthiest few and cause the hard-working families in this country not to receive any benefit whatsoever?”
Oliver replied that, “As the prime minister said clearly, income splitting has been a good policy for seniors and can be a good policy for families. Once the budget is balanced, our government is committed to greater tax relief for Canadian families.”
NDP MP Nicole Turmel said Canadians “deserve a clear answer” on income splitting, which she said “is of no benefit to under-privileged Canadians.
“Does the new minister of finance share the opinion of his predecessor?” Turmel asked in French.
Oliver reiterated his answer to Cullen, this time in French.
After Flaherty’s public musings about income splitting, Employment Minister Jason Kenney came out in favour of the policy, saying in February that it “supports families who are investing in their kids.”
The prime minister would only say in the House at the same time that “income splitting has been a good policy for seniors in Canada, and it will also be a good policy for Canadian families.”
Oliver was named to the post after Flaherty announced his resignation from cabinet ahead of an eventual move to the private sector. Flaherty remainsas MP for the Ontario riding of Whitby Oshawa.
“I’m honoured to stand for the first time in this House as Canada’s minister of finance and to follow in the footsteps for my great predecessor, the MP for Whitby Oshawa,” Oliver said as he rose for the first time to speak.
