MEDIA RELEASE: Canadians for Tax Fairness welcomes NDP proposal for excess profits tax, additional measures to address inequality
For Immediate Release – October 8, 2020
OTTAWA – Canadians for Tax Fairness strongly supports the progressive tax measures proposed today by the federal NDP to raise revenues and prevent pandemic profiteering.
“A handful of large corporations and the richest Canadians are making a killing during COVID-19, even as millions of individuals are struggling and smaller mainstreet businesses are shuttered. A wealth tax and an excess profits tax on large corporations that are profiting from the pandemic will help raise revenues and ensure the costs of combatting the crisis are distributed fairly,” said Toby Sanger, economist and director of Canadians for Tax Fairness.
Canadians for Tax Fairness has advocated for an excess profits tax since the pandemic began. There is a strong precedent for an excess profits tax in Canada. To help finance both world wars, the Canadian government introduced an excess profits tax of up to 80% on excess profits. These excess profits taxes often raised much more than the general corporate income tax. Recent national polling also found a large majority of Canadians want the government to tax corporations that profit to help pay for a bold recovery plan.
Internationally, there are already serious discussions underway through the OECD about the need for global excess profits taxes to help governments raise revenues in the wake of COVID-19. Canada should get ahead of this conversation just as other nations already have on international tax issues such as taxing foreign digital giants.
“We applaud the NDP for recognizing there is no place for corporate profiteering in a pandemic that has taken so much from so many Canadians,” Sanger said. “From day one of lockdown, we have watched this crisis worsen disparities of race, gender, and especially wealth. The Liberals recently promised to find new ways to tax extreme wealth inequality -- an excess profits tax should be among them.”
An excess profits tax is just one tax measure needed to reduce inequality and recover from COVID-19’s economic fallout. As Canadians for Tax Fairness recommended in the Alternative Federal Budget Recovery Plan, the federal government should also follow through with its promise to tax foreign digital corporations, tighten laws around tax dodging and tax havens, close tax loopholes for the very rich, and introduce an annual net wealth tax on the richest Canadians, whose wealth has grown during the crisis.
Erika Beauchesne, Communications Coordinator
Canadians for Tax Fairness
email@example.com | 613-315-8679
Canadians for Tax Fairness is a non-profit organization that advocates for progressive taxes to fund important public services, reduce inequality and strengthen the economy.