Opinion: It’s Time to Talk About Corporate Handouts, Not Just Government Deficits

A recent report from the C.D. Howe Institute warns about Canada’s projected $92 billion federal deficit, calling it “unfair to pass these burdens on.” But let’s be clear: the so-called burdens they’re concerned about aren’t the billions handed over to corporations in subsidies and tax breaks. They’re pointing fingers at public spending and investments in areas such as healthcare, education, infrastructure, and public service jobs while letting big business off the hook.

Year after year, governments at both the federal and provincial levels hand over massive subsidies and tax credits to some of Canada’s biggest and most profitable companies. The excuse? Economic development. But when was the last time you saw a think tank like C.D. Howe issue a dire warning about that kind of spending? What their report completely misses is the real value that government jobs and public services bring to our economy.

Public sector work supports local communities, keeps money circulating locally, and helps cushion us all during tough economic times. When public money is spent on hiring teachers and nurses or building housing, the benefits are clear, local, and long-lasting.

Meanwhile, many profitable corporations use tax havens and shady accounting practices to avoid paying their fair share. Despite making billions, they often pay less in taxes than the average worker. And yet, reports like this one don’t mention that. They stay silent on the billions we lose each year through profit shifting and corporate tax loopholes. The Parliamentary Budget Officer has pegged that loss at up to $15 billion a year, money that could be used to fund public services instead of padding shareholder profits.

If we’re serious about fixing the deficit, let’s start with fairness. Corporate tax reform and closing loopholes should be at the forefront. Businesses should pay tax on every dollar they earn in Canada, just like the rest of us do. However, the conversation often seems to circle back to cutting public services and shrinking the government. Think tanks like the C.D. The Howe Institute continue to push austerity while overlooking the costs and lack of accountability associated with corporate giveaways.

Suppose we want a complete picture of Canada’s fiscal health. In that case, we need to weigh both sides of the ledger: the billions handed to corporations with little oversight and the investments in people and services that build stronger communities. Let’s stop pretending the problem is public spending and start talking seriously about who benefits and who pays.

Danny Cavanagh

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