Budget Implementation Act, 2008

An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget

This bill is from the 39th Parliament, 2nd session, which ended in September 2008.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 enacts a number of income tax measures proposed in the February 26, 2008 Budget. In particular, it
(a) introduces the new Tax-Free Savings Account, effective for the 2009 and subsequent taxation years;
(b) extends by 10 years the maximum number of years during which a Registered Education Savings Plan may be open and accept contributions and provides a six-month grace period for making educational assistance payments, generally effective for the 2008 and subsequent taxation years;
(c) increases the amount of the Northern Residents Deduction, effective for the 2008 and subsequent taxation years;
(d) extends the application of the Medical Expense Tax Credit to certain devices and expenses and better targets the requirement that eligible medications must require a prescription by an eligible medical practitioner, generally effective for the 2008 and subsequent taxation years;
(e) amends the provisions relating to Registered Disability Savings Plans so that the rule forcing the mandatory collapse of a plan be invoked only where the beneficiary’s condition has factually improved to the extent that the beneficiary no longer qualifies for the disability tax credit, effective for the 2008 and subsequent taxation years;
(f) extends by one year the Mineral Exploration Tax Credit;
(g) extends the capital gains tax exemption for certain gifts of listed securities to also apply in respect of certain exchangeable shares and partnership interests, effective for gifts made on or after February 26, 2008;
(h) adjusts the rate of the Dividend Tax Credit to reflect corporate income tax rate reductions, beginning in 2010;
(i) increases the benefits available under the Scientific Research and Experimental Development Program, generally effective for taxation years that end on or after February 26, 2008;
(j) amends the penalty for failures to remit source deductions when due in order to better reflect the degree to which the remittances are late, and excuses early remittances from the mandatory financial institution remittance rules, effective for remittances due on or after February 26, 2008;
(k) reduces the paper burden associated with dispositions by non-residents of certain treaty-protected property, effective for dispositions that occur after 2008;
(l) ensures that the enhanced tax incentive for Donations of Medicines is properly targeted, effective for gifts made after June, 2008; and
(m) modifies the provincial component of the SIFT tax to better reflect actual provincial tax rates, effective for the 2009 and subsequent taxation years.
Part 1 also implements income tax measures to preserve the fiscal plan as set out in the February 26, 2008 Budget.
Part 2 amends the Excise Act, the Excise Act, 2001 and the Customs Tariff to implement measures aimed at improving tobacco tax enforcement and compliance, adjusting excise duties on tobacco sticks and on tobacco for duty-free markets and equalizing the excise treatment of imitation spirits and other spirits.
Part 3 implements goods and services tax and harmonized sales tax (GST/HST) measures proposed or referenced in the February 26, 2008 Budget. It amends the Excise Tax Act to expand the list of zero-rated medical and assistive devices and to ensure that all supplies of drugs sold to final consumers under prescription are zero-rated. It also amends that Act to exempt all nursing services rendered within a nurse-patient relationship, prescribed health care services ordered by an authorized registered nurse and, if certain conditions are met, a service of training that is specially designed to assist individuals in coping with the effects of their disorder or disability. It further amends that Act to ensure that a variety of professional health services maintain their GST/HST exempt status if those services are rendered by a health professional through a corporation. Additional amendments to that Act clarify the GST/HST treatment of long-term residential care facilities. Those amendments are intended to ensure that the GST New Residential Rental Property Rebate is available, and the GST/HST exempt treatment for residential leases and sales of used residential rental buildings applies, to long-term residential care facilities on a prospective basis and on past transactions if certain circumstances exist. This Part also makes amendments to relieve the GST/HST on most lease payments for land on which wind or solar power equipment used to generate electricity is situated.
Part 4 dissolves the Canada Millennium Scholarship Foundation, provides for the Foundation to fulfill certain obligations and deposit its remaining assets in the Consolidated Revenue Fund, and repeals Part 1 of the Budget Implementation Act, 1998. It also makes consequential amendments to other Acts.
Part 5 amends the Canada Student Financial Assistance Act and the Canada Student Loans Act to implement measures concerning financial assistance for students, including the following:
(a) authorizing the establishment and operation, by regulation, of electronic systems to allow on-line services to be offered to students;
(b) providing for the establishment and operation, by regulation, of a program to provide for the repayment of student loans for classes of borrowers who are encountering financial difficulties;
(c) allowing part-time students to defer their student loan payments for as long as they continue to be students, and providing, by regulation, for other circumstances in which student loan payments may be deferred; and
(d) allowing the Minister of Human Resources and Skills Development to take remedial action if any error is made in the administration of the two Acts and in certain cases, to waive requirements imposed on students to avoid undue hardship to them.
Part 6 amends the Immigration and Refugee Protection Act to authorize the Minister of Citizenship and Immigration to give instructions with respect to the processing of certain applications and requests in order to support the attainment of the immigration goals established by the Government of Canada.
Part 7 enacts the Canada Employment Insurance Financing Board Act. The mandate of the Board is to set the Employment Insurance premium rate and to manage a financial reserve. That Part also amends the Employment Insurance Act and makes consequential amendments to other Acts.
Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the recruitment of front line police officers, capital investment in public transit infrastructure and carbon capture and storage. It also authorizes Canada Social Transfer transition protection payments.
Part 9 authorizes payments to be made out of the Consolidated Revenue Fund to Genome Canada, the Mental Health Commission of Canada, The Gairdner Foundation and the University of Calgary.
Part 10 amends various Acts.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-50s:

C-50 (2023) Law Canadian Sustainable Jobs Act
C-50 (2017) Law An Act to amend the Canada Elections Act (political financing)
C-50 (2014) Citizen Voting Act
C-50 (2012) Law Appropriation Act No. 4, 2012-13

Votes

June 9, 2008 Passed That the Bill be now read a third time and do pass.
June 2, 2008 Passed That Bill C-50, An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget, be concurred in at report stage.
June 2, 2008 Failed That Bill C-50 be amended by deleting Clause 121.
June 2, 2008 Failed That Bill C-50 be amended by deleting Clause 116.
April 10, 2008 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
April 10, 2008 Passed That this question be now put.
April 9, 2008 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “this House declines to give second reading to Bill C-50, An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget, since the principles of the Bill relating to immigration fail to recognize that all immigration applicants should be treated fairly and transparently, and also fail to recognize that family reunification builds economically vibrant, inclusive and healthy communities and therefore should be an essential priority in all immigration matters”.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 5:50 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, if the Liberals cannot accept the word “steal”, perhaps we could say that they “took without asking”. This evening, it is the Conservatives who will vote on their side and take this $54 billion from workers.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 5:50 p.m.

The Acting Speaker Royal Galipeau

The hon. member for Hull—Aylmer will see that, since the Speaker is standing at the moment, it would be a good time for him to sit down.

I heard the two points of order, which are in fact further subjects of debate rather than points of order.

I am sure that the hon. member for Burnaby—New Westminster is going to come to more parliamentary language, but I also noted that when he spoke he did not address any of the objectionable words to any individual member of the House. We will just leave it at that and I hope the hon. member for Burnaby--New Westminster will understand the goodwill that I am offering him and take it as an invitation for improved parliamentary language.

The hon. member for Hull—Aylmer for a short remark.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 5:50 p.m.

Liberal

Marcel Proulx Liberal Hull—Aylmer, QC

Mr. Speaker, I would like to point out that the Just for Laughs comedy festival is in Montreal.

Here in the House of Commons, there is language that can be used and language that cannot be used.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 5:50 p.m.

The Acting Speaker Royal Galipeau

I thank the hon. member. I have already reacted and I believe that will suffice.

The hon. member for Burnaby—New Westminster.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 5:50 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, it is very clear that the Liberals do not like the characterization of what they did with employment insurance. However, it is not a laughing matter for the hundreds of thousands of working people who have been denied employment insurance benefits because of the Liberal government's actions and now the current Conservative government's actions.

I would think that everybody in this House, if they were in touch with their constituents on Main Street, would understand if we were to call this the false premises act. Essentially that money was collected under false premises in a fraudulent way. When we say that money will be redirected to support those who are unemployed and then we take that money and apply it to general revenues, that is a false premise. Hundreds of thousands of workers and working families have been impacted by that decision.

The Liberals do not like being reminded of their record, but in this corner of the House the NDP speaks the truth and we are bringing up that record, and we will not let them forget it. However, we also will not let the Conservatives get away with what is clearly contrary to the practices as even covered by the Auditor General.

The Auditor General says that the actions proposed in Bill C-50 are not appropriate, that there must be a larger reserve put aside for the money that was collected under the pretense that it would go to help working people in this country. We have a situation where only one-third of unemployed women can actually claim employment insurance. That is a devastating situation for people who are unemployed in this country. Who are these people? Let us talk about the facts.

We had a debate last Wednesday night with the Minister of Finance and he was unable to even acknowledge the reality that Statistics Canada tells us about working families in this country. Two-thirds of working families are earning less now than they were back in 1989. The wealthiest of Canadian families are doing better than ever. They now take half of all the income in this country and their income has skyrocketed over that same period.

When we talk about middle class families earning between $40,000 and $60,000 a year, they have lost a week's income each and every year since 1989. Lower middle class families earning between $20,000 and $40,000 a year have lost two weeks of income. Try getting by with no paycheques for two weeks. We have a profound understanding of what working families are living through.

The poorest of Canadians, including unemployed Canadians, have seen a devastating fall in income. They have lost a month and a half of income since 1989 for each and every year. We are talking about a catastrophic fall in income and the Conservatives are doing absolutely nothing to address this fundamental economic problem in this country.

What do they do? What is their solution? It is more and more corporate tax cuts. They just shovel the money off the back of a truck to the wealthy corporate sector, the most profitable corporations in the country. CEOs are doing well and that is all the Conservative government responds to, the agenda of corporate CEOs, not to the agenda of working families that are struggling to make ends meet, that are working longer and longer weeks and harder and harder, 200 hours on average. Canadian families are working more and more while at the same time earning less and less.

Perhaps the most insulting aspect of this is when the Minister of Finance stands in this House and says that jobs have been created in this country. We know what kind of jobs they are but the Minister of Finance could not even respond to that last week.

He and his government have kicked good manufacturing jobs out the door, family sustaining jobs paying over $20 an hour, on average $21 an hour, and they have created part time and temporary jobs that pay barely better than minimum wage.

The government, far from being proud of its economic record, should hang its head in shame for what it has done to the working people of this country. We have lost hundreds of thousands of jobs in a hemorrhaging of our manufacturing sector that is without precedence in Canadian history. What it has given us are temporary and part time service industry jobs that pay minimum wage. They do not come with pensions or any sort of benefits.

This hits younger Canadians particularly hard. Right now we have record levels of student debt that the Conservatives have done absolutely nothing about. Young Canadians see themselves going into a job market where there are low entry level wages and jobs that have no pension benefits. They can see, after working a 40 or 45 year career, retiring with no company pension.

What do the Conservatives offer? They offer the false pretense of taking $54 billion from the employment insurance fund and tucking it away, not putting it in any sort of debt reserve, not responding to the needs of Canadian working families, but tucking it away and putting $2 billion aside. That is less than 2¢ on the dollar that they are putting aside.

In this corner of the House we say, no, that is not appropriate accounting practices, which is what the Auditor General says, and it is not at all in the interests of working families who have struggled for 20 years while corporate executives have been given anything they want from the former Liberal government and the current Conservative government.

The Liberals and the Conservatives do not like their actions being characterized as a false premise. They do not like their actions being characterized as taking the money for one reason and then diverting it without consulting the public and without responding to the need in working communities from coast to coast to coast, but that is what has happened.

It is a false premise for the government to pretend it is doing something for working families when it essentially takes $52 billion away that came from hard-working families from coast to coast to coast. It is unfair and inappropriate and we are voting no.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6 p.m.

Independent

Louise Thibault Independent Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I would like to ask my colleague a question about a specific point.

The budget speech announced the establishment of a board that was to be an independent crown corporation. I would like to know if my colleague has concerns about this as I do. On the one hand, they are talking about an independent corporation. On the other, under clause 36, part 7 of the bill we are discussing and that would establish this board, “The Governor in Council, on the joint recommendation of the Minister [of Human Resources and Social Development] and the Minister of Finance, may make regulations...respecting the investments...the limitations...[and] prescribing anything—”

Although the powers of the board are specified at the beginning of this part, at the same time, the end indicates that these will be made upon the recommendation of these two ministers. These two ministers will readily make a recommendation.

According to my colleague, to what extent will they interfere with a board that is supposed to be independent? Does my colleague have serious doubts, as I do?

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I completely agree. The member has raised some very good questions.

Basically, that is what we think. We also pointed that out earlier today when we talked about immigration provisions. The minister is giving himself a lot of powers, the power to cross names off waiting lists, which are growing longer by the day. The minister will have the power to simply cross names off the list. The Conservatives would rather deal with management issues that way than bring in good management practices. “Good Conservative management practices” is something of an oxymoron. This plan will not work.

We are seeing exactly the same thing with these provisions in Bill C-50, that is, the concentration of powers in the hands of ministers who have already made it clear that they do not have the public interest at heart. They are taking money that honest Canadians contributed to an employment insurance system that no longer exists for two thirds of people who find themselves out of a job. Basically, this problem will not be solved by concentrating powers in the hands of ministers.

That is why the NDP is saying no to all of these measures. We will vote in favour of the amendments to Bill C-50 to fix these detrimental aspects.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I have a question for my NDP colleague.

The member for Hull—Aylmer was insulted by the language used in the House of Commons. Does he not think that workers should feel insulted to see the $54 billion completely wiped from the government's books today, with $2 billion invested?

Today, the Liberals did not even bother rising in the House to defend workers. Soon, in half an hour, we will see whether the Liberals will rise in the House to vote to protect the employment insurance fund.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, that is just it. The Liberals spoke out against all the changes to the Immigration Act. They stood up in the House one after the other and said they did not like these changes in the bill, but they will vote in favour of it. They are going to allow these immigration changes to go through.

It is exactly the same thing when it comes to the changes to employment insurance. The crime was committed when money was taken and not provided to the unemployed. Now, we are in a situation where the Liberals can stand up in this House and vote against this bill, but we know that the Liberal leader will vote in favour of any Conservative bill if it is a confidence vote.

We are in a situation where this minority government, with the weakness of the Liberal leader, has turned into a majority government. Unfortunately, this comes at the expense of all the workers in this country, people who just want to contribute to their community, work, and whenever possible, have a springboard between jobs. This will not happen because of the Liberal leader and the Conservative government.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6:05 p.m.

The Acting Speaker Royal Galipeau

Resuming debate. Is the House ready for the question?

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6:05 p.m.

Some hon. members

Question.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6:05 p.m.

The Acting Speaker Royal Galipeau

The question is on Motion No. 6. Is it the pleasure of the House to adopt the motion?

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6:05 p.m.

Some hon. members

Agreed.

No.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6:05 p.m.

The Acting Speaker Royal Galipeau

All those in favour of the motion will please say yea.

Budget Implementation Act, 2008Government Orders

June 2nd, 2008 / 6:05 p.m.

Some hon. members

Yea.