The Canadian Coalition for Tax Fairness supports the federal government’s efforts to close unfair tax loopholes that allow some wealthy Canadians to reduce their taxes using private corporations.
Unfair tax loopholes exacerbate inequality, and undermine the integrity of our tax system and the ability of government to fund the social and physical infrastructure needed to ensure a healthy and growing economy.
The private corporation loopholes that the government aims to close largely benefit the wealthy and create significant inequities in our tax system. The research clearly shows that the wealthy are far more likely than middle or low income Canadians to own a private corporation, and are far more likely to take advantage of these tax loopholes. With $27 billion sheltered in passive investments to date, this is not an insignificant public subsidy to the wealthy.
Although closing these private corporation tax loopholes is a positive and important step, it falls short of a full tax fairness strategy. There are many other unfair loopholes that mostly benefit the wealthy and do not serve the broader public interest, while making the tax system overly complex. We encourage the government to improve tax fairness. The money currently providing taxpayer-funded subsidies for the wealthy could be much better invested in poverty reduction, better public pensions for all, universal child care, long-term care for seniors, action on climate change, public education, community economic development, international development, agricultural research, or other measures that would build a healthy, growing economy.
This statement has been endorsed by the following groups:
- Alberta Federation of Labour
- Association of Canadian Financial Officers
- BC Federation of Labour
- Broadbent Institute
- Campaign 2000
- Canadian Association of University Teachers
- Canadian Centre for Policy Alternatives
- Canadian Federation of Students
- Canadian Labour Congress
- Canadian Teachers Federation
- Canadian Union of Public Emplpoyees
- Canadians for Tax Fairness
- Citizens for Public Justice
- Council of Canadians
- Friends of Medicare
- Income Security Advocacy Centre (ISAC)
- International Brotherhood of Electrical Workers (IBEW)
- Inter Pares
- Lead Now
- National Union of Public and General Employees
- Newfoundland and Labrador Federation of Labour
- Nova Scotians for Tax Fairness
- Oxfam Canada
- Oxfam Quebec
- Public Interest Alberta
- Saskatchewan Federation of Labour
- Toronto and York Region Labour Council
- UNITE-HERE! Canada