OTTAWA – Canadians for Tax Fairness is extremely encouraged by a proposed tax on corporate stock buybacks announced in Finance Minister Chrystia Freeland’s fall economic statement today.
“Stock buybacks primarily benefit the richest Canadians. I’m thrilled to see a proposal to tighten one of the numerous egregious tax and financial loopholes that drive inequality. This is the right move for the government to make when Canadians are suffering from inflation and headed toward recession,” said Katrina Miller, executive director of Canadians for Tax Fairness.
The good news comes at a critical time for Canada. Companies are making record profits but paying less tax, leading to greater corporate concentration and billions of lost revenue at a time when there is an increased need for supports and services.
“Corporations have played a big role in driving inflation and making life less affordable. Progressive changes to the tax system will help hold large companies accountable and fund the investments Canadians need,” said Dr. DT Cochrane, economist and researcher with Canadians for Tax Fairness.
The government also reiterated plans to examine a new minimum tax regime to ensure all wealthy Canadians pay their fair share.
Cochrane noted that additional measures the government could take include raising the corporate income tax rate and strengthening legislation to tackle tax avoidance, including requiring companies to publicly disclose their tax information as the Australian government recently did. Canada could also follow the lead of the U.S. and bring in a minimum tax on book profits.
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