The Liberal Party of Canada has put forward a motion today in the House of Commons calling on the Conservative government to reverse $6 billion in tax cuts for Canada’s largest corporations back to 2010 levels in the upcoming Budget.
“Cutting corporate taxes right now is reckless and unaffordable,” said Liberal Finance Critic Scott Brison. “The Conservatives’ record $56-billion deficit has left Canada in a different economic situation compared to 2007 when these cuts were voted on. Canadians should not be paying for corporate tax cuts with borrowed money when there are more pressing needs.”
A future Liberal government will restore Canada’s corporate tax rate on large corporations to 2010 levels, which were already the second lowest in the G7 and 25% below rates in the United States, and invest the estimated $6 billion in savings in deficit reduction and the priorities of Canadian families.
“Large profitable corporations don’t need a break right now – but families do,” said Mr. Brison. “The elastic is stretched tight on middle-class families, which is why Liberals will invest in family care, pensions, learning and jobs instead of more unnecessary corporate tax cuts.”
Mr. Brison encouraged the NDP and the Bloc Quebecois to support the Liberal motion to roll back these corporate tax cuts. Yesterday, he accused the government of contempt of Parliament for refusing to disclose details on the corporate tax cut plan.
“Mr. Duceppe has said he would support tax cuts for businesses at all levels – but the Conservatives are not cutting the tax rate for small business. They are ignoring 95% of the 2.2 million active businesses in Canada, including almost all of the small sized businesses,” said Mr. Brison. “In fact, the Conservatives are actually increasing EI payroll taxes on all employers and employees.
“As for the NDP, we hope they will stand by their longstanding policy and support our motion and demand the cancellation of Conservative corporate tax breaks now that we have a record deficit,” said Mr. Brison. “Cancelling these corporate tax cuts is the only way to meaningfully address the economic pressures on average Canadian families.
“Even Finance Minister Jim Flaherty supported a corporate tax freeze when the Ontario government couldn’t afford it,” concluded Mr. Brison. “I hope he will advise his colleagues to reconsider their misguided policy.”