What to do about our aversion to taxes
Re Tax phobia blocks path to a more equitable
Canada, Opinion March 4 The federal corporate tax rate has fallen steadily since 1980 — and from 28 per cent in 2000 to 15 per cent in 2012 — with provincial corporate tax rates dropping to an average of 11 per cent.
International Trade Minister Chrystia Freeland, in a campaign speech defending low corporate tax rates, noted that “growth is such an important part of . . . improving the futures of Canada’s middle class that we cannot do anything that hurts that.” But, contrary to her expectations, large corporations have not invested in our economy.
In 2012, former Bank of Canada governor Mark Carney chastised corporate Canada for hoarding “dead money” rather than investing. The non-financial corporate sector had stockpiled more than half a trillion dollars. Meanwhile, those corporations still benefit from public transportation infrastructure, public health, a well-educated workforce and other benefits paid for by taxpayers who, in turn, increasingly have part time or contract work, no security, no pen- sions, no benefits. Our infrastructure is falling apart; we are shifting more health costs onto individuals; we have no national daycare policy; we are leaving new grads with huge student loans to pay off; and the current government is willing to go billions of dollars into deficit to shore things up.
Meanwhile, the large corporations are still off the hook for their fair share. G.W. Byron, Toronto Canada’s anti-tax sentiment is rooted in the very human failing that has developed over the last 70 years of wanting government to provide but not wanting to pay for it. The latest manifestation is the recent poll which found that most Canadians are in favour of fighting climate change, but only a minority are in agreement with paying for it.
You can fiddle with the tax codes, but the only real solution is to elect a PM who is willing to grasp the nettle and tell people they are going to have to pay more taxes and to actually do it. If not, the system will eventually collapse. Andrew Hallett, Burlington