To finish the fight against COVID-19 and build a better, fairer, and more prosperous Canada for everyone, we will ask those who have done well to pay a bit more.
A re-elected Liberal government will:
- Raise corporate income taxes on the largest, most profitable banks and insurance companies who earn more than $1 billion per year and introduce a temporary Canada Recovery Dividend that these companies would pay in recognition of the fact they have recovered faster and stronger than many other industries.
- Create a minimum tax rule so that everyone who earns enough to qualify for the top bracket pays at least 15 % each year (the tax rate paid by people earning less than $49,000), removing their ability to artificially pay no tax through excessive use of deductions and credits.
- Implement a tax on luxury cars, boats, and planes as outlined in Budget 2021.
- Significantly increase the resources of the Canada Revenue Agency to combat aggressive tax planning and tax avoidance that allows the wealthiest to avoid paying the taxes they owe. This will increase CRA’s resources by up to $1 billion per year in order to close Canada’s tax gap.
- Modernize the general anti-avoidance rule regime in order to focus on economic substance and restrict the ability of federally regulated entities, including financial institutions such as banks and insurance companies, to use tiered structures as a form of corporate tax planning that flows Canadian-derived profit through entities in low-tax jurisdictions in order to reduce taxes back in Canada.
- Work with our international partners to implement a global minimum tax so that the biggest companies in the world are not able to escape the taxes they owe here in Canada.
- Eliminate flow through shares for oil, gas, and coal projects to help promote clean growth and Canada’s transition to a net-zero economy.
- Implement a national anti-flipping tax and move forward with Canada’s first ever national tax on non-resident, non-Canadians on vacant land and residential property.
- Move forward with a national tax on vaping products and require tobacco manufacturers to pay for the cost of federal public health investments in tobacco control.