Advertisement

Federal budget: Bank tax could hurt Canada’s competitiveness, CIBC CEO says

Click to play video: 'Canada election: Trudeau promises to raise corporate income tax rate on big banks'
Canada election: Trudeau promises to raise corporate income tax rate on big banks
Liberal Leader Justin Trudeau promised on Wednesday to raise the corporate income tax rate by three percentage rates on earnings over $1 billion for Canada’s big banks and insurance companies, adding that the government would ask them to “do a little bit more” to help Canada on the path to recovery. He said Canada’s banks have “continued to be incredibly successful, including through a pandemic where everyone else had to tighten their belts.” – Aug 25, 2021

CIBC’s chief executive officer says a tax hike targeting major financial institutions expected in today’s federal budget could send the wrong signal to the world about investing in Canada.

The Liberals promised in their 2021 election platform to hike the corporate tax rate for banks and insurers with profits over $1 billion.

The party estimated such a measure _ aimed at companies that saw record profits during the pandemic _ would bring in about $1.2 billion a year.

CEO Victor Dodig says he is an advocate for competitive tax policy, not policy that targets specific industries, and that he is supportive of moves that drive more human capital and foreign direct investment in Canada.

Story continues below advertisement

Dodig also weighed in on the state of the economy, saying it’s too early to be sounding the alarm on a recession after some recent movement in the U.S. bond market sparked concerns about a possible contraction.

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

The bank is holding its annual meeting of shareholders today.

Click to play video: 'Will Trudeau’s promised bank tax hike mean higher fees?'
Will Trudeau’s promised bank tax hike mean higher fees?

Sponsored content

AdChoices