Growing concern that vested interests will scuttle this small but important step towards a fairer tax system.
Ottawa (2 Aug, 2017) — Canadians for Tax Fairness is urging people to let the federal government know that it’s time to close a tax loophole that allows wealthy individuals to avoid paying their share.
Last month Bill Morneau, the federal Minister of Finance announced public consultations on his proposal to close tax loopholes that allow wealthy professionals to use private corporations to reduce the taxes they pay. The predictable push-back from those who don't want to pay their fair share of taxes has started.
Private corporation tax loophole
The private corporation tax loophole allows wealthy individuals to pay less tax in ways that aren’t available to most Canadians. With a private corporation wealthy individuals can pay themselves in the form of capital gains, which is taxed at half the rate of earned income. Private corporations also allow people to avoid taxes by paying adult family members who have done no work for the corporation, but who are in a lower tax bracket, salaries or dividends.
Vested interests hoping to block tax fairness
There is a real danger that vested interests will scuttle this small but important step towards a fairer tax system. This happened last year when the finance minister bowed to opposition from CEOs of some of the largest corporations and went back on a campaign promise to close the stock option loophole. That loophole gives a billion dollar tax break to wealthy CEOs – the last ones who deserve a top up of their exorbitant salaries at tax payers’ expense.
Canadians must speak out for tax fairness
Unless concerned Canadians speak out to support efforts to make the tax system fairer, there is a danger that the only voices the government and media will hear from will be wealthy individuals, who want ordinary taxpayers to continue to subsidize their incomes. Canadians for Tax Fairness is urging people to send a message now to Finance Minister Morneau asking him to stand firm and close this and other unfair tax loopholes.
We need the tax system to reduce inequality, not increase it!
You can learn more about this issue here: Don't Bow Down on Tax Loopholes: All Canadians are Negatively Affected.
You can also share your views on the Finance Department’s Consultation Paper on Tax Planning Using Private Corporations by going to: http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 370,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. ~ NUPGE