November 2nd, 2018

Time to Get Tough on Tax Loopholes for the Super-Rich: Jagmeet Singh

TORONTO – Standing in the heart of Toronto’s financial district, NDP Leader Jagmeet Singh announced he is committed to eliminating tax loopholes that only help the super-rich get even richer, while regular Canadians are struggling to get by.

“Every day, I meet Canadians who are getting hit by sky-rocketing housing prices, serious out-of-pocket healthcare costs and unaffordable childcare costs,” said Singh. “Meanwhile, the richest among us have a series of loopholes they can use to avoid paying billions in taxes. That needs to end now.”

Singh vowed to end the stock option loophole, which provides massive and untaxed payouts to CEOs, a move the Liberals had promised to do but following corporate pressure decided to back down. Singh also promised to crack down on shell companies used in tax havens and prohibit the use of unregistered bearer shares.

“Bearer shares are untraceable and completely anonymous making them excellent tools for the super-rich to avoid paying taxes on massive transactions,” added Singh. “That’s also why money launders and criminals love them; the real ones and the ones in action movies like Die Hard. There’s no reason for them to exist.”

The NDP says eliminating the stock option loophole will recover $740 million in lost tax revenue every year, and measures to crack down on tax havens will result in an annual windfall of at least $400 million, but due to their anonymous nature the tax gap caused by bearer shares is not known. The NDP says they would use this revenue to fund programs that reduce the price of prescription drugs, address the housing crisis, and tackle the costs of childcare.