Canada's corporate income tax rate has been cut by one third - from 22.1% in 2006 to 15% today. That costs $12 billion in reduced tax revenues annually. So ask yourself, what have we got for that money? Corporate money in offshore tax havens is at an all-time high while corporate tax cuts during a time of deficits has resulted in cuts public services and an increase in public debt. Economist Andrew Jackson why the math just doesn't make sense.
Luxembourg has been a prime destination for Canadians looking for a tax haven.
Secretive. Discreet. Accommodating.
These features were so attractive that Canadian companies had $36 Billion there in 2013. That's just part of the $199 billion corporate Canada has shifted to the top ten tax havens to avoid paying tax at home. It may profit CEOs and stockholders. The rest of us are getting pretty fed up.
It is no surprise that taxpayers feel the system is stacked against them. Over the years, leaders of all political stripes have used tax fairness as a slogan and not a principle. Will Budget 2015 be any different? Not likely. That's a shame. Because while hard-working Canadians are the engine that drives the country, smart tax policy is the fuel that keeps it going.
May Hen is currently a research associate at the Centre for Policy Research at Simon Fraser University. But in her previous work life she was one of Canada's 11,512 tax collectors at the Canada Revenue Agency. As tax our tax filing deadline and the Federal Budget approach it got her to thinking about how our tax system should be serving Canadians.
The World Social Forum kicks off in Tunis today. Activists will be debating and strategizing how to change a global economic system that benefits a few thousand people who own more wealth than the rest of the world combined. Here is a guest blog from the Director of Oxfam, International Winnie Byanyima.
Canada is a wealthy country. But wealth guarantees neither brains nor prosperity. The squandered opportunity of Canada’s resources and a delayed federal budget because of a dip in oil prices is a sad reminder of that.
The upcoming federal election is an opportunity to take stock and look for strong leadership on fiscal issues that go beyond the failed attempts at so-called austerity and boutique tax cuts. Canadians need to press political leaders to take a real stand on tax reform.
Like Alberta, the federal government’s fiscal health is now handcuffed to oil prices to a degree that we’ve never seen before. It’s the opposite of ‘sound fiscal management’ — it’s loose math based on wishful thinking. Veteran journalist and political observer Chris Waddell tells us why - and it isn't pretty.