Canada’s financial sector has been the greatest beneficiary of recent corporate income tax cuts, as well as from preferred tax rates applied to capital gains taxes and stock options. In total, the value of these tax preferences and tax cuts now adds up to approximately $11 billion a year for Canada’s financial sector and is projected to reach over $14 billion a year in 2013.
A new CCPA study, by economist and CCPA Research Associate Toby Sanger, says Canada should join other countries in introducing fairer taxes on the financial sector that could generate over $10 billion a year.
The study recommends establishing a fairer tax system and broadening the base by:
<li>Introducing a Financial Activities Tax (FAT) on financial sector profits and remuneration to compensate for the under-taxation of the financial sector.</li> <li>Eliminating tax preferences for stock options and capital gains.</li> <li>Reversing recent corporate tax cuts.</li> <li>Working with other countries to establish global financial transactions taxes.</li>
Click here to read Fair Shares: How Banks, Brokers, and the Financial Industry Can Pay Fairer Taxes.