Tax Avoidance


65 years ago Canadian corporations collectively paid about the same amount of tax as private Canadians. Today private citizens collectively pay 3 times as much as Canadian corporations.

“In an average year, the 102 biggest companies in Canada pay $10.5 billion less than they would if they paid tax at the official corporate tax rate.” - Toronto Star. But when Revenue Canada tries to recoup 4.4 billion due to offshore tax evasion they can expect to get, maybe half. - National Post


Groups like Taxfairness have plenty of straight forward ideas to turn this around. Like a financial activities tax: “Canada’s biggest banks and insurance companies remained profitable through the financial crisis and topped the list of large corporations making higher profits than usual during the pandemic. A Financial Activities Tax could also help cool the over-heating asset market, including housing. Such a tax, as proposed by the IMF, would generate at least $7 billion annually.”


The problem is not unique to Canada. They have the same problem in the US. France, Australia, Great Britain, Sweden and other nations are struggling with the same race to the bottom in order to stay competitive without realizing the promised “trickle down” benefits that governments and large corporations promise will come. 


Imagine what you could pay for with an extra 10 billion in tax revenue. Try 1.2 million child care places. Imagine the uptick in the economy if 1.2 million people go back to work rather than staying at home with children. Imagine the number of health care workers you could hire or the improvements you could make to Long Term Care facilities or the pharmacare you could offer with the extra cash. These are all economic stimulators. But instead, year after year, government after government, we allow the rich to get richer, keeping wealth bottled up instead of reinvesting.


The Liberals have had their chance. The Conservatives , even more beholden to business, aren’t likely to do any better. That’s why, this election, it’s time for a change. We can make corporations pay their fair share, but you have to vote for it.


Mike Druiven


Muhammad Riaz Sahi is the NDP candidate for Milton.



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