Corporate Canada done paying taxes for year, hoarding $541 billion in cash
Corporate Canada done paying taxes for year, hoarding $541 billion in cash This article is more than 8 years old

Corporate Canada done paying taxes for year, hoarding $541 billion in cash

Canadian corporations are done paying taxes for the year, according to a new study that links massive corporate tax giveaways to hoarding hundreds of billions in cash. Wednesday is Corporate Tax Freedom Day, meaning that corporations have now paid their entire share of taxes for the year to all levels of government, the Canadian Labour […]

Canadian corporations are done paying taxes for the year, according to a new study that links massive corporate tax giveaways to hoarding hundreds of billions in cash.

Wednesday is Corporate Tax Freedom Day, meaning that corporations have now paid their entire share of taxes for the year to all levels of government, the Canadian Labour Congress report shows.

And instead of investing in creating jobs after a decade of massive corporate tax cuts, corporations are hoarding $541 billion in cash.

“In return for tax breaks, business has promised to invest in training, research and development and job creation but they have failed to do that,” said the CLC’s Hassan Yussuff. “Companies have instead been hoarding cash and paying out fat compensation to their CEOs.”

Here are other key findings in the report:

Corporations and CEOs are getting richer

  • Since 2000, the federal corporate tax rate has been cut at the waist, from 28% to 15%.
  • Corporate after tax profit margins rose 6.9% in 2000 to 8.1% in 2012.
  • During the same period, CEO compensation ballooned to an average of $7.96 million in 2012.
  • Between 2000 and 2012, the cash reserves of private, non-financial private corporations in Canada grew from $182 to $541 billion — an increase of 300%. 
 
  • And the rest of us aren’t seeing any benefits:
  • Corporate income taxes in 2012 amounted to only 7.85% of all government revenues, down from 10.1% in 2000.
  • Unemployment has increased. While the official unemployment rate currently stands at 7.1%, the real unemployment rate (factoring in underemployment and those no longer actively searching for work) stands at 14% as of December 2013.
  • Business investment in R&D has fallen from 1.13% of GDP in 2000 to 0.88% in 2012.
  • Investment in employee training and skill training is down by 40% since the 1990s. Canadian companies spent an average of $688 per employee on training; in the U.S. it was $1,701.
  • Economic growth between 2000 and 2012 was 1.14% — one of the longest periods of low economic growth in decades.

Happy Corporate Tax Freedom Day!

Photo: eric_fink. Used under a Creative Commons BY 2.0 licence.

Our journalism is powered by readers like you.

We’re an award-winning non-profit news organization that covers topics like social and economic inequality, big business and labour, and right-wing extremism.

Help us build so we can bring to light stories that don’t get the attention they deserve from Canada’s big corporate media outlets.

 

Donate
PressProgress
PressProgress is an award-winning non-profit news organization focused on uncovering and unpacking the news through original investigative and explanatory journalism.

Most Shared

westjet

Top Doug Ford Adviser Sent Premier’s Office Backchannel Message About Meeting With Russian Government

Related Stories

WestJet asked non-union staff to provide scab labour in case of Calgary, Vancouver strike

View the post
News

This Right-Wing Québec Media Website Has Mysterious Ties With Alberta’s Oil Lobby

View the post
video

‘It Feels So Good’: Conservative MP Arnold Viersen Celebrates Overturning of Roe v. Wade

View the post

Explainers

Human rights & inclusion

Amira Elghawaby

Here’s The Problem With Hoping Corporations Will Be Socially and Environmentally Responsible On Their Own

View the post
Politics & strategy

Jeremy Appel

The battle of the PACs in Calgary’s municipal election

View the post
Politics & strategy

Jeremy Appel

27 Different Candidates are Vying to be Calgary’s Mayor. Here Are the Biggest Issues at Stake.

View the post
Why do newspapers always have a business section but not a labour section? We’ve launched a free newsletter covering labour issues in Canada.
Get All Your Canadian Labour News in One Place
Why do newspapers always have a business section but not a labour section? Good news! We’ve launched a newsletter covering labour issues in Canada.