The higher taxes and energy costs rise, the more the government desperately resorts to corporate welfare.
Toyota recently made a profit of $22 billion.
But apparently, the federal and Ontario government’s still had to give a bunch of taxpayer money to the company in order to get an upgrade at two Toyota plants.
The plants in Cambridge and Woodstock are being upgraded, in what the government’s say will create 450 new jobs in the next 10 years. There will also be 1,000 co-op jobs created in that time.
At the announcement of the plant upgrades, Trudeau said “These measures support Canada’s competitiveness and build our capacity to do the kind of advanced automotive research and production that companies like Toyota want to do more of.”
Wynne said “It’s a vote of confidence in our talented workforce and in our entire province.”
Here’s another way to say it: Corporate welfare.
Personally, I’m glad to see that there could be some more jobs in the auto industry. But when you break it down, that’s $151,724 per job – over an entire decade.
We need to ask why would a company that just made such massive profits need $220 million ($110 million each from the federal and Ontario govs) in taxpayer dollars if they identified the plant upgrades as a good idea and saw the province as a cheap place to do business?
It doesn’t make sense.
What does make sense is that Toyota would ask for the money as a way to offset the economic damage caused by carbon taxes and rising energy costs (which are reaching obscene levels in Ontario). Meanwhile, the United States has been cutting taxes, and doesn’t have a carbon tax.
So, because of the burden put on businesses by Trudeau & Wynne’s policies, the government is reduced to giving out corporate welfare in an attempt to attract investment.
This is an important reminder that policies pushed by elitists like Trudeau & Wynne end up ripping off taxpayers, while simultaneously enriching massive corporations, causing even more erosion to the middle class.
If Canada had a more pro-worker and pro-business environment, imagine how many more good jobs would be created, and imagine how much less taxpayer dollars would be going towards paying off those companies.
Photo – YouTube