Running deficits to finance social and physical infrastructure is acceptable short term tool when the economy is in a slump. But running a deficit while ignoring smart revenue options is a bad plan.
That’s the message from Canadians for Tax Fairness to Finance Minister Bill Morneau and the Parliamentary Finance Committee in a pre-budget brief. “It is basic logic to to make sure everyone, including multinational corporations and wealthy individuals are paying the taxes they should be paying,” says C4TF Executive Director Dennis Howlett. “We’ve let the principles of fair taxation slide. Tax-dodging has become commonplace because of staff cuts and under-capacity at the CRA and not taking serious action to counter tax havens.”
The submission outlines seven major tax revenue options totaling $50 billion:
1. Eliminate regressive and ineffective tax loopholes and simplify the tax system
2. Increase corporate taxes
3. Increase tax on banks and finance
4. Introduce inheritance taxes
5. Make income taxes more progressive
6. Tackle tax havens and cheats
7. Introduce Green Taxes
Howlett says he is hopeful that a promised consultation and review of loopholes will be the first step in tackling tax havens. There is $199 Billion of Canadian money, untaxed, in tax havens. This depletes revenues by approximately $8billion annually. You can find the submission here.