Hon. Jim Flaherty (Minister of Finance, CPC)

Mr. Speaker, rather well.

There are a couple of provincial budgets this week, one in Alberta. I hope they have the advice of the leader of the Liberal Party who says that budgets can balance themselves, so they will not have to worry about all the details and expenses.

Hon. Jim Flaherty (Minister of Finance, CPC)

Mr. Speaker, I was taught by Peter Hogg as well. I got an A in the tax course.

The question is an important one. It is important for about a million Canadians who also happen to be citizens of the United States.

The Americans initially proposed that there would be a 30% withholding tax and there would be direct reporting by Canadian banks to the IRS. We got rid of that. They have agreed that we will use our existing framework under the Canada-U.S. tax treaty, which has been successful.

No new taxes will be imposed. The CRA will not assist the IRS in collecting U.S. taxes.

Hon. Jim Flaherty (Minister of Finance, CPC)

Mr. Speaker, I am still in Finance, unlike the member for Markham—Unionville.

We are all agreed on this side of the House that once the budget is balanced our government is committed to granting further tax relief to Canadian families. That tax relief, so far, averages $3,400 less for each Canadian family in 2014.

Hon. Jim Flaherty (Minister of Finance, CPC)

Mr. Speaker, I think we made it quite clear that we have frozen EI rates because of fragility in the global economy and not wanting, at this time, to jeopardize the very modest economic recovery we have in this country, as well as in the United States, unlike Europe, so that we do have job growth, even though it is modest.

We will unfreeze the rates, and they will go to balance in the next few years. For the time being, we are not going to put a greater burden on employees and employers. We want to create jobs, not kill them.

Hon. Jim Flaherty (Minister of Finance, CPC)

Mr. Speaker, when I contemplate thinking about issues, I rarely think of the Liberal Party.

As I have said, once the budget is balanced, which it is not yet, our government is committed to greater tax relief for Canadian families, and only Conservatives, because our track record shows it, can be trusted to reduce taxes for Canadian families.