Collaborative Proposal Creation
Create, improve and sponsor proposals in a respectful, fully bilingual environment. Grow proposals in the "Hothouse", for promotion to the "Workshop", to become official GPC policy.
Proposal text
Be It Resolved that our caucus introduce a bill to improve the minimum large corporate tax to 5% a year of taxable income.
Type of Proposal
Public policy that the party would represent
Objective / Benefit
Minimum Large Corporate Tax
If your proposal replaces an existing policy or policies, which one does it replace?
N/A
List any supporting evidence for your proposal
Currently some $23.4 billion a year in assessed income and other taxes is not collected by the Canadian government
Does this proposal affect any particular group and what efforts have been made to consult with the group or groups?
Large Corporations
Jurisdiction: Is this proposal under federal jurisdiction?
Yes
Please indicate the language the proposal is being submitted in.
English
This proposal has been accepted because:
79.0% of members voted in favour of adopting this motion in the all-member vote.
Amendments (1)
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Created at
22/05/2024 -
- 0
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Conversation with James Mihaychuk
I suggest that "total income or overall revenues" should be replaced with "net income".
I also suggest that "large corporations" should be more specific, such as "large corporations, those with at least 500 employees or at least $100 million annual revenue". Canada has a particular problem with nurturing small and medium enterprises (SMEs) to reach the $100 million scale.
There will generally be a large cohort of SMEs that are seeking to invest in expansion to achieve greater scale and impact. It is generally better for the federal government to let such a business pay lower corporate taxes on the basis that the_net_ income of such a business is reduced when it reinvests profits to fund expansion.
This kind of support to small and medium sized enterprises has been particularly noteworthy in Germany and in technology-intensive sectors in the USA as a means of allowing SMEs to grow, generating more employment and paying for more services from providers outside the company, growing government revenues.
Canada's ranking in the Harvard Atlas of Economic Complexity has slipped a lot since about 2010. One way to recover our economic complexity (diversification) should be to support the growth and diversification of SMEs.
https://atlas.cid.harvard.edu/rankings
April 30th, 2024. I have looked over the various responses and my original intent was to see if an ordinary member could direct the parliamentary caucus to introduce a bill in the House of Commons of Canada. So this is a directive motion not a policy motion.
Beyond that I simply wanted the MPs caucus to propose a bill to require large corporations to pay a minimum tax each year and simply chose 5% a year because that is the minimum amount that each citizen pays to the BC government each year.
I simply do not believe that large corporations, new, in development or whatever, should pay less income tax than ordinary Canadian taxpayers.
As member of 30 years I was made to understand that each member when bringing forward a resolution lost individual control of that motion when it reached the membership. In this case 60.9% of the members in the bonsor process agreed that this motion should go forward to the membership for ratification.
I therefore do not believe it is my right to decide which amendments should be considered and which ones should not as that is the role of the members to decide that and I can comment at time of adoption.
Respectfully
Andy Shadrack
The most significant problems with this proposal could be addressed by reframing it as an endorsement (and expansion) of the Global Minimum Tax Act introduced in August 2023. See https://www.grantthornton.global/en/insights/articles/implications-of-pillar-2/
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