The parliamentary budget officer says a tax proposed by the NDP last year on excess profits at big corporations would generate $7.9-billion dollars. The New Democrats asked budget officer Yves Giroux to calculate a hypothetical tax on companies whose profits exceeded their 2020 expectations. The NDP proposed a 15 per cent tax on those extra earnings — calculated based on the firms’ average five-year profit margin — in addition to the current 15 per cent corporate tax on all profits. The report shows large companies in finance and manufacturing had by far the biggest jump in profits in 2020, with leaps of 22 per cent and 11 per cent respectively.
Photo Credit: Parliament of Canada via CPAC