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NDP leader Jagmeet Singh has said he will use the supply and trust deal with the Liberals to push through the decision
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June 7, 2022 • 9 hours ago • 2 minutes of reading • 470 comments Jagmit Singh, leader of the New Democratic Party (NDP), wants to tax excess corporate profits and redistribute them among Canadians to ease the effects of inflation. David Kawai / Bloomberg
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NDP leader Jagmit Singh says the liberal government must respond to the growing inflation crisis by taxing excess corporate profits and redistributing money directly to Canadians, with “ordinary families” receiving up to $ 1,000.
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At a news conference on Tuesday, Singh said: “We see clearly that corporations are making these huge profits, making record profits and their record profits are directly contributing to rising living costs.”
If companies simply increased their prices to cover rising costs, “then their profits would be similar to previous years. But they are not, “Singh said.
The government must take action, he said, citing a study by Food Banks Canada published on Monday, which shows that nearly a quarter of Canadians say they eat less than they think they should because they did not have enough money to food. The group warned that this summer is expected to be the hardest food banks have seen in decades.
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“We are saying to extend this to other sectors that are making extra profits, especially big stores and oil and gas companies,” Singh said.
Overall, Canada’s corporate sector is experiencing some of the highest profits ever seen.
Jagmit Singh
He noted that “in general, Canada’s corporate sector is experiencing some of the highest profits it has ever seen.”
Singh said record corporate profits contribute to at least a quarter of the inflation that Canada is currently experiencing, an argument previously made by David MacDonald, a senior economist at the Canadian Center for Policy Alternatives. Singh also cited the United Kingdom, which has declared a 25% “contingency tax” for oil and gas companies.
The party is proposing a $ 500 increase in child allowances in Canada and a doubling of the GST tax credit, which Singh says will help about 12.5 million Canadians. He said the NDP was open to various models of taxing excess profits, with one option for doubling corporate tax on profits that exceeded the normal range of previous years.
“What we want to see is a commitment to acknowledge, above all, that there is this huge contingency.” that’s above and beyond the increased costs, “he said.
Asked how the supply agreement with the Liberals would affect this request, Singh said that “we will use our position to continue to push for this decision.”
He accused liberals and conservatives of not having the “courage” to pursue unnecessary corporate profits.
“Neither of them is ready to see this as a solution,” Singh said.
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