Advertisement

Trudeau says he’ll raise taxes on the big banks to pay for COVID-19 recovery

Click to play video: 'Canada election: Liberals’ lead fades as Trudeau popularity dips, poll suggests' Canada election: Liberals’ lead fades as Trudeau popularity dips, poll suggests
A new Ipsos poll, done exclusively for Global News, found that the Liberals have squandered a five-point lead they held over the Conservatives heading into the federal election campaign last week, while Justin Trudeau’s popularity is on the decline. – Aug 24, 2021

The federal Liberals are pledging to make Canada’s profitable financial sector contribute billions of dollars annually to help people bounce back from the hard times of the COVID-19 pandemic.

During an election campaign stop Wednesday in Surrey, B.C., Liberal Leader Justin Trudeau promised to raise the corporate income tax rate paid by Canada’s largest banks and insurance companies by three per cent on all earnings over $1 billion.

Read more: O’Toole promises more mental health funding for provinces if elected

A re-elected Liberal government would also establish the Canada Recovery Dividend so these institutions contribute more over the next four years of Canada’s recovery.

The party says the measures would generate a minimum of $2.5 billion per year over the next four years, beginning in 2022-23.

Story continues below advertisement

Trudeau said asking large financial institutions, which have recovered faster and stronger than many other businesses, to pay a little more will allow the government to lend a helping hand to Canadians looking to buy a home.

Click to play video: 'Trudeau defends tweet by Freeland marked as ‘manipulated media’ by Twitter' Trudeau defends tweet by Freeland marked as ‘manipulated media’ by Twitter
Trudeau defends tweet by Freeland marked as ‘manipulated media’ by Twitter – Aug 23, 2021

He rejected a suggestion the planned measures would cut into the returns realized by pension plans that have invested in financial institutions.

“Our banks will continue to be strong and profitable,” Trudeau said.

On Tuesday, the Liberals promised hundreds of millions of dollars in loans, grants and tax incentives to address the housing affordability crisis, which has grown since Trudeau came to office in 2015.

The Liberal plan is intended to encourage homeownership, build more houses and protect the rights of consumers.

Sponsored content