The federal New Democrats are pushing for a permanent GST cut — and they want to pay for it by taxing the oil and gas (LNG) industry a “windfall profits tax.”NDP finance critic Don Davies accused the LNG sector of “profiteering” during and since the COVID-19 pandemic, citing industry profits amounted to $6 billion in 2019 — and increased ten-fold to $66 billion in 2022.“That kind of windfall (should be) fairly taxed,” Davies told Power & Politics Wednesday evening..WATCH: ‘ECONOMIC VANDALISM’ — Tories call out Liberals for ‘punishing’ LNG targets.Davies claimed he’s “seen some really strong research” that indicates when a consumption tax, like the GST, is cut, “there’s a change in (public) behaviour.”“Consumers can respond by purchasing more, so sometimes there’s increased economic activity,” he said.“People are really struggling in this country. Giving them a break on life’s essentials free up money for Canadians, most of which would be recycled into the economy..Federal cost-benefit analysis shows Liberals’ LNG cap will cause layoffs.He said an “excess profit tax” should be imposed on the energy industry, “targetting the largest and most profitable corporations.”“That money would help to fund important programs for Canadians, like relief to Canadians who need it now, like dental care and pharmacare, and still leave those sectors with frankly massive profits,” said Davies. “That's why we’ve proposed the windfall profits tax, which we think is a responsible thing to do.”“When industries profiteer — and I think there was profiteering done, in the pandemic and post pandemic. Some corporations take advantage of an emergency and they use that to cover an unjustifiable hike in prices.”
