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.
Organizations from different sectors across the country representing over 4 million Canadians have come together to form the new Coalition for Tax Fairness — in support of the federal government’s efforts to close unfair tax loopholes that allow some wealthy Canadians to reduce their taxes using private corporations. The group issued a joint statement today. Membership is open and the coalition is growing fast.
Canadians for Tax Fairness is hiring a full-time Program Manager for a new two-year project to tackle the problem of shell companies in Canada and the need to ensure transparency of beneficial ownership of corporate registrations. The application deadline is September 12, 2017 for an October starting date.
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.