Corporate profits

NDP wants to redistribute ‘excess’ corporate profits to Canadians to dampen inflation

NDP Leader Jagmeet Singh said he would leverage the supply and confidence agreement with the Liberals to push this solution forward

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NDP Leader Jagmeet Singh said the Liberal government should respond to the growing inflation crisis by taxing excess corporate profits and redistributing the money directly to Canadians, with “ordinary families” receiving up to $1,000.

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Speaking at a press conference on Tuesday, Singh said, “We clearly see that companies are making these massive profits, they are making record profits and their record profits are directly contributing to the rising cost of living.”

If companies simply increased their prices to meet rising costs “then their profits would be similar to those of previous years. But they are not,” Singh said.

The government must act, he argued, pointing to a Food Banks Canada poll released Monday that showed almost a quarter of Canadians said they ate less than they should because they had no enough money for food. The group warned that this summer is expected to be the toughest food banks have seen in decades.

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“We’re saying expand that to other sectors that are making excess profits, especially big box stores and oil and gas companies,” Singh said.

Overall, the corporate sector in Canada is recording some of the highest profits they have ever seen

Jagmeet Singh

He noted that “overall, the corporate sector in Canada is recording some of the highest profits they have ever seen.”

Singh said record corporate profits are contributing to at least a quarter of the inflation Canada is currently experiencing, an argument previously made by David Macdonald, senior economist at the Canadian Center for Policy Alternatives. Singh also pointed to the UK, which announced a 25% “one-off tax” on oil and gas companies.

The party is proposing to increase the Canada child benefit by $500 and double the GST tax credit, which Singh says would help about 12.5 million Canadians. He said the NDP is open to different models of taxing excess profits, with an option to double the corporate tax rate on profits that exceed the normal range from previous years.

“What we want to see is a commitment to recognize, first of all, that there is this massive windfall…. it’s beyond the cost increase,” he said.

Asked how the supply deal with the Liberals would accommodate this request, Singh said, “We will use our position to continue to deliver this solution.”

He accused both Liberals and Conservatives of not having the “courage” to tackle excess corporate profits.

“None of them are willing to consider this as a solution,” Singh said.