Tax reform nothing more than theatre
Re Tax reforms don’t go far enough: Editorial, July 22 There are few Canadians who would disagree with the Star’s editorial on tax reform. There are also few Canadians who would believe it will ever happen. Unfortunately, as citizens we are all trapped in an economic and political system that rarely responds to the expectations of the majority. Our western democracies are well-orchestrated acts of public theatre to give the impression that democracy is operating as it should while under the surface nothing changes.
This is the case with Bill Morneau’s tax change efforts. His measures are tinkering with a system that requires a radical overhaul and bold measures to begin the process of fair wealth redistribution in Canadian society. Closing minor tax loopholes like “sprinkling” income while ignoring offshore tax havens and corporate tax avoidance is nothing more than public theatre with little substance.
As the Star noted, there are numerous other substantive measures Morneau could invoke to produce a significant revenue stream for the government, such as a minimum tax of 25 per cent to be paid by all corporations. Publishing a list of businesses that pay no tax (a Sunshine List for corporations) would provide added fiscal transparency and accountability for the public as well.
Mr. Morneau also assiduously ignores the investment and bank- ing sector that currently pays little tax on its huge daily business. Imposing a Tobin Tax of a few cents per share on stock and currency trading, as recommended by Nobel Laureate economist James Tobin, would create a massive revenue stream for the government while costing investors pennies on the dollar and requiring them to pay their fair share on their bulging profits. Such a measure would have the ancillary effect of damping speculation and high-speed computer trading that also destabilize financial markets.
Increasing luxury taxes on goods and services over $50,000 would bring in even more revenue. It’s not rocket science. Follow the money.
These measures, as well as those recommended by the Star, would go a long way to increasing tax fairness and wealth equity, but don’t hold your breath. Robert Bahlieda, Newmarket