Banks may be forced to start paying it forward more than initially expected..On Monday, cabinet proposed an annual $2.5 billion in new taxes on the largest banks and insurers, according to Blacklock’s Reporter..This move by the Liberal Party would increase current corporate tax rates on financial institutions with earnings totalling over a billion dollars annually from 15% to 18%..Prime Minister Justin Trudeau said since so many others had to “tighten their belts” during the pandemic, the government is going to ask banks to do the same..When asked by a reporter why this choice was held off on until an election was on the horizon, Trudeau said he thinks “people understand an election is an important moment to make choices.”.On June 29 cabinet’s last budget passed through Parliament. In a document, Asking Financial Institutions To Help Canada Build Back Better, the higher corporate tax was proposed to begin in 2022..Trudeau said large banks and insurers “will also be charged a Canada Recovery Dividend,” but did not elaborate..The Help Canada document said large banks and insurance companies will pay this fee “in recognition of the fast-paced return to profitability these institutions have experienced in large part due to the unprecedented backstop Canadians provided to our economy through emergency support to people and businesses.”.Staff said the fee would be developed closely with the superintendent of Financial Institutions, and it would be “applied over a four-year period.” Trudeau said big banks got “a windfall” from the pandemic, “so as we rebuild we’re going to ask big financial institutions to pay a little back, to pay a little more, so that we can do more for you.”.Trudeau cited big banks and financial institutions having done very well in recent months, “this week Canada’s biggest banks are posting their latest massive profits of billions of dollars.”.On April 10, 2020, the Canadian Banks Association gave testimony at the Commons finance committee saying banks “did their part by deferring mortgage payments for almost 600,000 borrowers from the outbreak of the pandemic.”.Neil Parmenter, CEO of the Association, said “…this keeps money in the pockets of people who need it now.” Parmenter went on to say, “…banks have taken a variety of different actions including cuts on interest rates, flexibility, deferrals, all those sorts of things.”.NDP MP Peter Julian replied to Parmenter saying “Canadians want to see the big banks are not profiting during this crisis.” Parmenter reiterated that “Canadian banks always follow all the laws.”.Jackie Conroy is a reporter for the Western Standard.jconroy@westernstandardonline.com
Banks may be forced to start paying it forward more than initially expected..On Monday, cabinet proposed an annual $2.5 billion in new taxes on the largest banks and insurers, according to Blacklock’s Reporter..This move by the Liberal Party would increase current corporate tax rates on financial institutions with earnings totalling over a billion dollars annually from 15% to 18%..Prime Minister Justin Trudeau said since so many others had to “tighten their belts” during the pandemic, the government is going to ask banks to do the same..When asked by a reporter why this choice was held off on until an election was on the horizon, Trudeau said he thinks “people understand an election is an important moment to make choices.”.On June 29 cabinet’s last budget passed through Parliament. In a document, Asking Financial Institutions To Help Canada Build Back Better, the higher corporate tax was proposed to begin in 2022..Trudeau said large banks and insurers “will also be charged a Canada Recovery Dividend,” but did not elaborate..The Help Canada document said large banks and insurance companies will pay this fee “in recognition of the fast-paced return to profitability these institutions have experienced in large part due to the unprecedented backstop Canadians provided to our economy through emergency support to people and businesses.”.Staff said the fee would be developed closely with the superintendent of Financial Institutions, and it would be “applied over a four-year period.” Trudeau said big banks got “a windfall” from the pandemic, “so as we rebuild we’re going to ask big financial institutions to pay a little back, to pay a little more, so that we can do more for you.”.Trudeau cited big banks and financial institutions having done very well in recent months, “this week Canada’s biggest banks are posting their latest massive profits of billions of dollars.”.On April 10, 2020, the Canadian Banks Association gave testimony at the Commons finance committee saying banks “did their part by deferring mortgage payments for almost 600,000 borrowers from the outbreak of the pandemic.”.Neil Parmenter, CEO of the Association, said “…this keeps money in the pockets of people who need it now.” Parmenter went on to say, “…banks have taken a variety of different actions including cuts on interest rates, flexibility, deferrals, all those sorts of things.”.NDP MP Peter Julian replied to Parmenter saying “Canadians want to see the big banks are not profiting during this crisis.” Parmenter reiterated that “Canadian banks always follow all the laws.”.Jackie Conroy is a reporter for the Western Standard.jconroy@westernstandardonline.com
