Halifax, N.S. – Nova Scotia Federation of Labour President Danny Cavanagh says yesterday’s Federal Fiscal Update plan to reduce the corporate tax rate at the cost of $15 billion over the next five years is a flawed plan that has not worked in the past.
“We are doubtful that new tax write-off allowing manufacturers to recoup the full cost of machinery and the measures to write-off clean energy equipment and the so-called new accelerated capital cost allowance to encourage businesses to invest in assets and drive long-term growth are all the same sound bites from the past and frankly haven’t lived up to the dream.
“This government should be increasing corporate taxes because we know this kind of smoke and mirrors economic agenda has only made the rich richer while workers suffer from actual pay decreases when we factor in inflation. What’s even worse is that corporations who hide their wealth in tax shelters and avoid Canadian taxes are once again rewarded with more tax break schemes all invented right here in Canada by the Liberals and that’s not right,” says Cavanagh.
Cavanagh says we know that many communities suffer high rates of poverty and child poverty and corporations need to start to pay up. Cutting corporate taxes over the last 30 years just hasn’t worked, and in fact, inequality grew across our land. Seniors can’t afford heating oil, food and shelter, our veterans are suffering, old age pensions are not increasing, and our workers, our children and our seniors are all suffering, while the rich get more breaks.
“We say that our Government should be taking action to make some earth-shattering differences for people, our workers, for seniors, women and our children. The government’s role should be to help people and not continue to give handouts to corporations. Does Mr. Morneau not understand that in the past corporate tax cuts or write-offs didn’t translate into jobs through promised increases in investments, in machinery and equipment all things they had promised in the past when their taxes were cut?
The new labour tax credit for local journalism will work because it means that local news outlets who hire people will get a small reward through tax incentives as they grow to expand local news coverage, they become eligible for tax credits. Many Canadians may be happy to receive a 15 percent refund on all subscriptions with digital news sites.
“We are concerned that for far too long our governments have been tied to the hip of corporations. Many of our affiliated unions and other coalition partners will not like the fact that the economic update also included $755 million for so-called “social finance” – code words to line the bottomless pockets of our profit-driven private corporations who want to suck the lifeblood of our tax wealth through the privatizing of our public services”, says Cavanagh.