Why not outlaw use of tax havens?

Re Loopholes costing Canada billions in lost revenue, June 17 Once again the public is treated to another in a long list of soon to be forgotten investigations into legalized fraudulent corporate behaviour that reveals the obscenely offensive systemic and endemic corruption that lies at the core of our free enterprise system. The foxes have been put in charge of the hen house.

Through government lobbying, corporations — or what John Perkins termed “the corporatocracy” — make the laws that govern their own self-interest with the willing complicity of politicians and CRA bureaucrats who seem nonplussed by this egregious and undisguised effort to avoid paying any taxes at all under the guise of remaining “globally competitive.” Democracy has, for all intents and purposes, been privatized in everything but name — and even more disturbing — we don’t care.

It is a carnival shell game and taxpayers are the marks. And it is all legal and willingly endorsed by our own supposedly fair, honest and democratic Canadian politicians and economists who we trust to run our society in an equitable manner.

Instead, over the last 50 years corporate tax rates have plummeted under the relentless demands of big business despite scant evidence that this economic practice works, the HST was implemented to off-load corporate taxes on to the consuming public and governments of all political stripes have quietly introduced “loopholes” like tax havens to provide preferential treatment to big-business multinationals, while significantly increasing the tax burden on ordinary Canadians.

What politician or reasonable person thinks it is fair to tilt the tax table so heavily in favour of corporations in this way? In addition, governments regularly dole out billions in “corporate welfare” to companies that cry poor to “incentivize” them to locate in Canada.

This drain on the public coffers with the tacit endorsement of politicians is a travesty of integrity because it has savaged the funds necessary to build and continue the social safety net in society. It has allowed and ensured privatized profits and wealth while socializing risk to the Canadian public.

Our politicians allow this to happen and seem powerless to stop this legal tax theft while simple legislation outlawing tax haven use could be passed immediately with full taxes owing. Robert Bahlieda, Newmarket