Corporate Income Tax Freedom Day has come earlier this year report says
While most of us will be working for many more weeks before we’ll have earned the equivalent of our annual tax bill, Canada’s largest firms have already done so.
The Corporate Income Tax Freedom Day for 2020 was January 7th according to a report from Canadians for Tax Fairness.
The report was compiled by economist Toby Sanger, director of the organization, who says that corporate income taxes accounted for an average of just 1.75% out of their annual operating revenues – less than a week’s worth!
And the report notes that the effective corporate tax rate paid by firms on their taxable income has fallen from 40% 25 years ago to 20% today. And Sanger says the justification for the cuts has not been proven.
“We were promised that corporate tax cuts would lead to more investment, economic growth and jobs. Instead we’ve had declining rates of business investment, sluggish productivity and economic growth, record cash hoarding by corporations, and increased inequality,” said Sanger.
The report follows a separate analysis that shows Canada’s top CEOs have already earned more this year than the average Canadian annual wage.
Sanger added that the effects of the corporate tax cuts have only helped those at the top.
“Corporate tax cut benefits have trickled up, not down while Canadians have paid the price through cuts to public spending. They’ve been a multi-hundred-billion-dollar failure,” he said.
It's time for governments to stop cutting corporate taxes, have corporations to pay their fair share of tax, and invest more in public services. @CdnTaxFairness https://t.co/l1zsGOOx3K
— Toby Sanger (@toby_sanger) January 7, 2020
