According to the Independent Budget Monitoring Group of Canada, the plan to tax excessive corporate profits during epidemics could generate nearly $ 8 billion in tax revenue.
A new report From the Parliamentary Budget Office, Canada estimates that if it raises its corporate tax rate on businesses, corporate income tax revenue will increase significantly.
“We estimate that the excess profit tax will generate $ 7.9 billion in federal corporate tax revenue by 2020,” says a new BPO report.
The NPP crushed BPO numbers in response to a request from financial commentator Peter Julian. With the federal deficit now rising to $ 354 billion by 2020-2021, the New Democrats are calling for rich and profitable companies to pay for increased government spending in response to the epidemic.
Citing similar measures taken during World War II, NTP proposes to raise corporate taxes on companies that earned more than $ 10 million last year and exceeded their profit expectations.
“If the liberal government does not really get down to giving the fair rich their fair share, the burden of what is going to happen is going to fall on the people, or the liberal government is going to reduce the aid needed by the people,” NDP leader Jagmeet Singh responded to the statement.
“Both of those options are wrong. We offer a third alternative, which will make the very rich, the very rich, pay their fair share with the contagious profit tax.”
Watch / Jagmeet Singh talks about his party’s excessive profit tax
In Canada, corporate income is taxed at 15 percent, although some businesses qualify for lower deductions. The NTP proposal would reduce profits by more than a certain amount to 15 per cent. Singh said the move is temporary and will end once Canadians are vaccinated and the epidemic is over.
How many deficient teeth will it produce?
Yves Crokes, a parliamentary budget official, said such a system to reduce the deficit would not be taxable and would only be about 3 percent of total government revenue.
“It’s not important, but it’s not something that will save the government from a deficit,” Xerox told CBC News.
Others warn that taxing some companies, such as grocery store chains, could have the effect of increasing the prices of essential goods and services.
“If you are forced to pay higher taxes as a company, please have shareholders, guess what you have to do with your own prices,” said Sylvain Charlboise, professor and director of the Agricultural Food Analysis Laboratory at the University of Dalhousie.
NTP has recommended that households with more than 20 million assets use a 1 percent wealth tax per year and tax web companies such as Amazon, Google and Facebook.
Last week the Liberal Budget government announced that it would move forward by taxing Internet companies A new line For luxury cars, airplanes and boats.