Freeland says Canada must stop cutting corporate taxes

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Deputy Prime Minister Chrystia Freeland said Canada must end corporate tax cuts, calling it a “race to the bottom”.

The Blacklock Reporter noted the Liberal Party has proposed $ 4.2 billion a year in new taxes, mostly on corporations.

“Part of building a fair recovery is strengthening international tax fairness, ending the race to the bottom of corporate taxes and ensuring that all corporations, including the world’s largest , pay their fair share, ”Freeland said.

“We will stem the global trend of lowering the corporate tax rate.”

The Party’s August 25 campaign document, Asking Financial Institutions to Help Canada Build Back Better, proposed an increase in the corporate tax rate from 15 percent to 18 percent for banks and insurers with incomes above one percent. billion dollars a year.

He also proposed that an unspecified stimulus dividend from Canada be “paid by these same big banks and insurance companies in recognition of the rapid return to profitability these institutions have experienced in large part due to the unprecedented support they have received. Canadians have provided our economy with emergency support. to people and businesses.

“The distribution of this dividend among the institutions concerned will be worked out in consultation with the Superintendent of Financial Institutions over the next few months,” the document continues.

It would be “applied over a period of four years”.

The Cabinet estimated that all new taxes, including a new charge on tobacco manufacturers and stricter collections on offshore accounts, would generate $ 4,241,000,000 next year and nearly double, more than 8.2 billion dollars, by 2025.

The numbers were calculated by the Parliamentary Budget Officer.

“The big banks have had a boon,” Prime Minister Justin Trudeau told reporters on August 25.

“As we rebuild, we’re going to ask the big financial institutions to pay back a little, pay a little more, so that we can do more for you.

“The big banks and insurance companies have been doing very well in recent months. Canada’s biggest banks post their last massive profits of billions of dollars.

“Everyone had to tighten their belts. We will ask them to do a little more.

NDP Leader Jagmeet Singh said on September 21 that he expected Cabinet to raise corporate taxes with the support of his caucus.

“People are worried about who is going to pay the price for the pandemic,” Singh said.

“We don’t think this should be a small business,” Singh said. “We remain committed to it being the ultra-rich.”

The NDP platform proposed a general increase in the income tax rate for all large businesses from 15% to 18%, not just banks and insurers, and an increase in the federal tax rate on higher from 33% to 35% for individuals earning more than $ 216,500 per year.

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