The Liberal government has caved on their campaign promise to close the stock option loophole. Too bad, because it costs Canada $1Billion a year and Canadians definitely don't get their money's worth. During the election campaign Morneau admitted that less than 8,000 of Canada's richest Canadians get the biggest slice of this billion dollar loophole.
But he was heavily lobbied.
"I talked to people about this," Finance Minister Bill Morneau told Rosemary Barton on CBC Power and Politics. He said he was told that stock options were a good measure to support an innovative economy.
Sounds like he was talking to the wrong people.
The truth is that the biggest users of this loophole are Canada's bank presidents and multi-millionaire CEOs of the top traded companies on the Toronto Stock Exchange. "There are smarter, fairer ways to encourage innovation in the Canadian economy," said Dennis Howlett, Executive Director of Canadians for Tax Fairness. " The stock option loophole is one of hundreds that are not working the way they should." Howlett says this reversal will need to be examined if the government goes ahead with its promise to review loopholes.
Take a look at this fact sheet to see who the biggest winners are in the stock option loophole game.