For immediate release: November 4, 2025
OTTAWA—Canadians for Tax Fairness is both concerned and disappointed by the budget tabled by the Carney government today, which promises more to the wealthiest among us and big corporations raking in record profits, while imposing austerity and ‘sacrifice’ on everyday Canadians who are already stretched.
Moves to slash a staggering $58 billion from federal public services, including eliminating 40,000 jobs and cutting pension benefits for disabled RCMP personnel, will cause Canadians unnecessary pain and weaken services that help everyday people build prosperity. These cuts could have been avoided by adequately taxing the extreme wealth of a minuscule percentage of Canadians. For example, a progressive wealth tax on net worth over $10 million would raise over $37 billion in the first year and impact only 0.6% of all Canadians.
At the same time, Budget 2026 doubles down again on tax credits to massive multi-billion dollar corporations, characterizing these handouts as critical for attracting investment and “reinforcing” Canada’s position as the G7 country with the lowest effective corporate tax rate. This strategy flies in the face of clear evidence. Canada has been gifting corporations with similar tax credits for the better part of the last decade, the exact period during which we have continued to face concerns about low investment.
Prime Minister Carney has taken some small steps in the right direction. Finally moving forward on automatic tax-filing will help thousands of low-income Canadians access the tax credits and benefits they’re eligible for. Reforming transfer pricing rules and preventing insurers from avoiding Canadian income tax through foreign subsidiaries are welcome developments, although they barely scratch the surface of Canada’s tax avoidance problem—or the $15 billion a year in tax revenue we’re forfeiting by refusing to address it.
But overall, at a time when inequality is at record levels and most Canadians are stretched, if not outright struggling to cover many of the basics, this budget is likely to exacerbate, rather than curb, our country’s inequality crisis.
“Despite the government bemoaning the lack of necessary tax revenue while the ultra-rich pay just over half the effective tax rate the average Canadian pays, this budget neither generates needed revenue by increasing taxes on the wealthy and mega-corporations, nor reduces the tax burden on lower-income Canadians,” said Jared A. Walker, executive director of Canadians for Tax Fairness. “Instead, Mr. Carney’s first budget is the worst of both worlds, continuing the decades-long wealth transfer to the top 1% from the rest of us. Food bank use in Canada is at an all-time high, but if you’re a landlord with a vacant unit or you’re in the market for a yacht, then you’re in luck.”
“We’ve seen this movie before. For over four decades, we have tried austerity and corporate tax cuts. It ends with stagnating wages, soaring cost of living, skyrocketing inequality, and crumbling public services. It is time for a better way forward that puts everyday Canadians at the centre of their own economy,” Walker added.
Canadians for Tax Fairness is a non-profit, non-partisan organization that advocates for fair and progressive tax policies aimed at building a strong and sustainable economy, reducing inequalities, and funding quality public services.
Media contact:
Erica Shiner
Communications Coordinator
Canadians for Tax Fairness
