$2.5 billion a year over the next four years starting from 2022. In a recent political deal with the New Democratic Party prop to prop up the minority Liberals NDP leader Jagmeet Singh pushed the federal government to keep its vow, which does not appear to sit well with the head of one of Canada’s biggest lenders.
During a call with reporters last week, the chief executive of Canadian Imperial Bank of Commerce (CIBC), Victor Dodig, described such a surtax as discriminatory, warning that it risks hurting investments if imposed. “You send out negative signals to investors when you start picking on industries,” he said in response to the inclusion of a bank tax in the deal that will keep the Liberals in power through 2025. “Capital will come into Canada, jobs will get created in Canada, when the economic conditions are better in our country, and the regulatory framework and the tax-policy framework, are better in our country than in other countries,” Dodig added.
Meanwhile, Prime Minister Justin Trudeau reiterated this controversial election promise during a morning press conference on Tuesday. “We will deliver a fairer tax system for the middle class by addressing the profits made by financial institutions during the pandemic,” he said.
He made these comments amid increased pressure from the NDP to make good on its promise. “People are struggling to keep up with the rising cost of groceries, gas and housing. Meanwhile, big banks, big box stores and big oil companies are making record profits off the backs of Canadians worried about making rent at end of the month or putting food on the table,” Minister Singh said in a Monday press release. “We’re asking the government to keep their promise to put a tax on the excess profits of huge corporations and to reinvest it to help make life more affordable for you and your family.”
