Canada’s largest public workers union asked MPs to undo the corporate tax cuts made by the former Conservative finance minister Jim Flaherty..According to Blacklock’s Reporter, the Canadian Union of Public Employees (CUPE), which has 715,000 members, said cancelling Flaherty’s corporate tax cuts could bring in billions of dollars annually..“The major beneficiaries have been large corporations and the wealthiest Canadians,” CUPE wrote the Commons Finance committee. .“These cuts have left a huge hole in federal budgets.”.In 2014, Flaherty passed away from a heart attack when he was 64. When he was the finance minister starting in 2006, he reduced the federal income tax rate on large corporations from 21% to 15%..CUPE asked the MPs to bring back the 21% tax rate. According to the Budget Office, this could bring in $16 billion annually..They also suggested an “annual wealth tax" for Canadians with more than $10 million in equity. They also considered bringing back the inheritance tax, which the government eliminated in 1972..“Tax cuts implemented since 2000 have reduced federal revenues by over $50 billion annually and the major beneficiaries have been large corporations and the wealthiest Canadians,” the union said..It estimated a revived inheritance tax on millionaires’ estates would raise $12 billion..In 2022, the government increased the corporate tax for banks and insurers from 15% to 16.5%, which would bring in an extra $460 million every year. .They also added a short-term extra tax, the 15% Canada Recovery Dividend..The group Canadians for Tax Fairness told the Finance committee corporations should pay more taxes..“The government recognized some corporations had unearned income when it passed the Canada Recovery Dividend,” said the Tax Fairness submission. .“However, the tax was far too limited.”.“Banks and life insurance companies were not the only ones to reap windfall profits,” wrote Tax Fairness. .“Corporations benefited from the financial supports offered to Canadians during the pandemic. A windfall profit tax would return some of those funds to public hands.”.“Many corporations were able to take advantage of pandemic-induced economic turmoil to hike markups,” wrote Tax Fairness. .“Other corporations benefited from spikes in commodity prices. Regardless of the method, hundreds of billions of dollars in unearned extra profit fell into corporate hands.”.In a March 13 report, Responding to the Challenges of our Time, the Finance committee advocated new taxes to “generate revenue to fund poverty reduction programs." The report suggested “taxing extreme wealth” but did not elaborate..Since 2020, the New Democrats have been pushing for a 30% windfall profits tax. The Budget Office estimates this could bring in $7.95 billion every year..“People are worried about the cost of this pandemic and they’re worried because they don’t want to see the cost fall on them,” NDP leader Jagmeet Singh said at the time..Parliament in 1940 introduced an Excess Profits Tax Act that imposed a minimum 35% tax on corporations and a 75% surcharge on net gains in excess of “standard profits” based on tax filers’ average revenues in the previous three years..“If the Liberal government doesn’t actually get down to making the ultra-rich pay their fair share, what’s going to happen is the burden is going to fall on people,” said Singh.
Canada’s largest public workers union asked MPs to undo the corporate tax cuts made by the former Conservative finance minister Jim Flaherty..According to Blacklock’s Reporter, the Canadian Union of Public Employees (CUPE), which has 715,000 members, said cancelling Flaherty’s corporate tax cuts could bring in billions of dollars annually..“The major beneficiaries have been large corporations and the wealthiest Canadians,” CUPE wrote the Commons Finance committee. .“These cuts have left a huge hole in federal budgets.”.In 2014, Flaherty passed away from a heart attack when he was 64. When he was the finance minister starting in 2006, he reduced the federal income tax rate on large corporations from 21% to 15%..CUPE asked the MPs to bring back the 21% tax rate. According to the Budget Office, this could bring in $16 billion annually..They also suggested an “annual wealth tax" for Canadians with more than $10 million in equity. They also considered bringing back the inheritance tax, which the government eliminated in 1972..“Tax cuts implemented since 2000 have reduced federal revenues by over $50 billion annually and the major beneficiaries have been large corporations and the wealthiest Canadians,” the union said..It estimated a revived inheritance tax on millionaires’ estates would raise $12 billion..In 2022, the government increased the corporate tax for banks and insurers from 15% to 16.5%, which would bring in an extra $460 million every year. .They also added a short-term extra tax, the 15% Canada Recovery Dividend..The group Canadians for Tax Fairness told the Finance committee corporations should pay more taxes..“The government recognized some corporations had unearned income when it passed the Canada Recovery Dividend,” said the Tax Fairness submission. .“However, the tax was far too limited.”.“Banks and life insurance companies were not the only ones to reap windfall profits,” wrote Tax Fairness. .“Corporations benefited from the financial supports offered to Canadians during the pandemic. A windfall profit tax would return some of those funds to public hands.”.“Many corporations were able to take advantage of pandemic-induced economic turmoil to hike markups,” wrote Tax Fairness. .“Other corporations benefited from spikes in commodity prices. Regardless of the method, hundreds of billions of dollars in unearned extra profit fell into corporate hands.”.In a March 13 report, Responding to the Challenges of our Time, the Finance committee advocated new taxes to “generate revenue to fund poverty reduction programs." The report suggested “taxing extreme wealth” but did not elaborate..Since 2020, the New Democrats have been pushing for a 30% windfall profits tax. The Budget Office estimates this could bring in $7.95 billion every year..“People are worried about the cost of this pandemic and they’re worried because they don’t want to see the cost fall on them,” NDP leader Jagmeet Singh said at the time..Parliament in 1940 introduced an Excess Profits Tax Act that imposed a minimum 35% tax on corporations and a 75% surcharge on net gains in excess of “standard profits” based on tax filers’ average revenues in the previous three years..“If the Liberal government doesn’t actually get down to making the ultra-rich pay their fair share, what’s going to happen is the burden is going to fall on people,” said Singh.
