For immediate release: December 16, 2024
OTTAWA— While a GST holiday provides some welcome short-term relief to struggling Canadians, the tax break could create more hardship if it is not funded by taxing extreme corporate wealth, according to Canadians for Tax Fairness (C4TF).
Excess corporate profits in Canada have reached record levels in recent years, with the vast majority going toward increasing the wealth of shareholders instead of productive investments in the Canadian economy, according to recent research by C4TF.
“A straightforward excess profits tax across all sectors would bring in billions, providing funding for much-needed infrastructure like housing, education, and pharmacare, as well as paying for targeted tax relief such as the GST holiday,” said Katrina Miller, executive director of C4TF.
“The Fall Economic Statement should include an excess profits tax to fund the GST holiday. Otherwise, publicly-funded programs that low- and middle-income Canadians rely on most may face cuts down the line,” suggested Silas Xuereb, researcher and policy analyst with C4TF.
Countries around the world have been implementing excess profits taxes to capture some of the outsized revenue mega corporations are currently enjoying. C4TF is calling on Canada to follow suit, flagging the urgent need for profits generated in Canada to be invested in making life more affordable and the economy more productive. “A GST holiday will be short-term gain and long-term pain without an excess profits tax to pay for it,” concluded Miller.
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
erica.shiner@taxfairness.ca
