Canadian Labour Congress President Bea Bruske appealed to MPs on Thursday, urging them to implement a 25% windfall tax on corporate profits..According to Blacklock’s Reporter, Bruske testified at the Commons Finance committee the windfall tax money should be directed toward helping low-income families purchase food..“Workers in Canada currently are suffering the intense cost of living pressures, but with bold action, we believe government can help alleviate these pressures,” said Bruske. .According to Statistics Canada's benchmark Consumer Price Index, food inflation averages 6.9% year-over-year..“The Congress recommends, in order to cope with high food prices, Budget 2024 impose a windfall profit tax on large food retailers and use the revenue to fund an extension of the existing grocery rebate program,” said Bruske..The Finance committee did not debate the proposal..“I am not sure how a tax on grocers makes groceries more affordable,” said Conservative MP Marty Morantz (Charleswood-St. James, MB)..Cabinet on July 5 paid what it called a 'grocery rebate,' a one-time doubling of GST credits to low-income households earning under $35,000 a year. The bonus was worth $2.4 billion by Budget Office estimate..New Democrats since 2020 have advocated a 30% windfall profits tax on all corporations with proceeds worth $7.95 billion a year, according to Budget Office analysts. .“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,” New Democrat leader Jagmeet Singh earlier told reporters..The grocery stores have rejected accusations of profiteering, stating that their profit margins have consistently stayed within the range of 3% to 4%. .In a Bank of Canada report released on August 1, the Bank discovered no proof of profiteering by grocery stores..“The contribution of changes in markups to inflation was limited,” said the report The Contribution of Firm Profits to the Recent Rise in Inflation..According to the federal Competition Bureau's report on June 26, supermarket chains had raised their profits by “modest yet meaningful amounts,” approximately $1 billion annually..“Margins generally increased by one or two percentage points since 2017,” said the report Grocery Competition. .“Grocers make relatively little on each item but make their profits in volume. That means even small changes in margins can be meaningful.”.On June 13, 2023, the Commons Agriculture committee proposed an excess profits tax on grocery store chains..“The Government of Canada should consider introducing a windfall profits tax on large, price-setting corporations,” said a committee report Grocery Affordability: Examining Rising Food Costs in Canada.
Canadian Labour Congress President Bea Bruske appealed to MPs on Thursday, urging them to implement a 25% windfall tax on corporate profits..According to Blacklock’s Reporter, Bruske testified at the Commons Finance committee the windfall tax money should be directed toward helping low-income families purchase food..“Workers in Canada currently are suffering the intense cost of living pressures, but with bold action, we believe government can help alleviate these pressures,” said Bruske. .According to Statistics Canada's benchmark Consumer Price Index, food inflation averages 6.9% year-over-year..“The Congress recommends, in order to cope with high food prices, Budget 2024 impose a windfall profit tax on large food retailers and use the revenue to fund an extension of the existing grocery rebate program,” said Bruske..The Finance committee did not debate the proposal..“I am not sure how a tax on grocers makes groceries more affordable,” said Conservative MP Marty Morantz (Charleswood-St. James, MB)..Cabinet on July 5 paid what it called a 'grocery rebate,' a one-time doubling of GST credits to low-income households earning under $35,000 a year. The bonus was worth $2.4 billion by Budget Office estimate..New Democrats since 2020 have advocated a 30% windfall profits tax on all corporations with proceeds worth $7.95 billion a year, according to Budget Office analysts. .“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,” New Democrat leader Jagmeet Singh earlier told reporters..The grocery stores have rejected accusations of profiteering, stating that their profit margins have consistently stayed within the range of 3% to 4%. .In a Bank of Canada report released on August 1, the Bank discovered no proof of profiteering by grocery stores..“The contribution of changes in markups to inflation was limited,” said the report The Contribution of Firm Profits to the Recent Rise in Inflation..According to the federal Competition Bureau's report on June 26, supermarket chains had raised their profits by “modest yet meaningful amounts,” approximately $1 billion annually..“Margins generally increased by one or two percentage points since 2017,” said the report Grocery Competition. .“Grocers make relatively little on each item but make their profits in volume. That means even small changes in margins can be meaningful.”.On June 13, 2023, the Commons Agriculture committee proposed an excess profits tax on grocery store chains..“The Government of Canada should consider introducing a windfall profits tax on large, price-setting corporations,” said a committee report Grocery Affordability: Examining Rising Food Costs in Canada.
