August 31st, 2016

How Canada’s big banks are spending their corporate tax cut

Record profits. Huge bonuses to CEOs. Pink slips for workers.

Despite the change in government, Ottawa has doubled-down on the same failed trickle-down economic policies of the past. Case in point: the first Liberal budget—where not one cent of Stephen Harper’s $60-billion in wasteful corporate tax cuts was reversed.

So how’s that working out? Well, it leaves less money for things that help families, like improving our health care system or expanding affordable childcare options. But it sure is helping Canada’s big banks. Let’s take a closer look:

  • Record profits. Just last week, RBC posted $2.7-billion in profits. That’s a whopping 17% increase at a time when many Canadians are struggling with job losses, stagnant wages, and slow economic growth.
  • Huge bonuses to CEOs. Last year, the big banks took their corporate tax cut and handed over $12-billion in bonuses to their executives—the same ones making the decision to increase service charges and lay off workers.
  • Pink slips for workers. Speaking of layoffs, while announcing profits of $973 million in the second quarter alone, the Bank of Montreal also revealed plans to lay off 1,850 people. That’s on top of the almost 5,000 workers the big banks showed the door last year.

Take action

New Democrats are leading the fight to ensure that banks and profitable corporations pay their fair share. But reversing decades of failed policies and getting the new government to do the right thing won’t be easy. Join our campaign for fairness today: