Finance Minister Morneau has announced public consultations on his proposal to close tax loopholes that allow wealthy professionals to use private corporations to reduce the taxes they pay.
The predictable push-back from those with the most to lose has started. Don’t let vested interests scuttle this small but important step towards a fairer tax system. Tell him not to back down this time.
KPMG. SNC Lavalin. These are only a few of the companies that have been awarded lucrative supply contracts from our federal government. Trouble is, they, and many other companies have used tax havens right under the government's nose. And the current rules do nothing to stop them from geting those contracts. It is time to change the rules and tell companies that tax haven use disqualifies them from taxpayer money.
Last year the Federal government backed down on an election promise to close the stock options tax loophole that gave almost a billion dollars to the richest CEOs. The Finance Minister bowed to pressure from vested interests who didn’t want to lose their 50% discount on taxes.
The tax system can be a powerful tool for redistributing wealth and reducing inequality and poverty. We all benefit (including the rich) from a more equal society with better population health, reduced crime, and better education. Recent research also now shows that lower inequality also means better employment opportunities and a more vigorous economy, again, from which we all benefit, rich or poor.