Jagmeet Singh’s ‘Excess Profits Tax’ Would Hurt Already-Struggling Canadians

Economic illiteracy seems to be the trademark of the NDP under Singh.

Will the Liberal-NDP coalition bring in an ‘excess profits’ tax?

It seems to be a possibility, with Jagmeet Singh relentlessly pushing the idea on Twitter:

“Canadians are struggling with the cost of living.

Corporations are making billions in record profits.

When you pay more – they profit more.

So when parliament voted on who to help – I chose you.

Justin Trudeau and Conservatives chose to send billions more to corporations.”

“It doesn’t have to be this way.

Let’s tax the excess profits of these corporations and help Canadians struggling with the cost of living.”

Strangely, the NDP gets things half right on their petition page:

“Canadians are already feeling crushed by the rising cost of housing, groceries, gas and heating fuel for their homes.

With the Bank of Canada raising the interest rate, families will be forced to pay even more interest while banks continue to make more profits.

Just last year alone, prices rose by 5.1% while people’s wages only rose by 2.4%.

And while Canadians are struggling to keep up or not able to keep up – big box stores like Walmart and Canadian Tire are making record profits. And the Liberals continue to stand by.

In 2021, Walmart made $3.562 billion (US) in profits while Canadian Tire made $1.261 billion in profits.

Under the Liberals, the ultra-rich are thriving while Canadian families feel abandoned.

It doesn’t have to be this way.

The Liberals can make different choices.

Join Jagmeet Singh and Canada’s New Democrats in calling on Justin Trudeau’s Liberals to close tax loopholes for big corporations in order to invest in solutions that will make life more affordable for all Canadians.”

Singh and the NDP have accurately deduced that the cost-of-living is surging, and that wages continue to stagnate.

Yet, Singh’s proposed ‘excess profits tax’ would make things even worse.

First of all, will Singh be the one defining what counts as ‘excess profits’?

What is the cut-off?

Why should government – who never seem worried about taking excess taxes from us – decide that?

Second, does Singh not realize that businesses are also impacted by inflation?

Does he not realize that companies will face higher costs in an inflationary environment?

Third, why doesn’t Singh ever talk about the role of rampant money printing and government spending in driving up inflation?

It’s not as if companies all of a sudden became profit-focused, any company that seeks to survive is going to try and maximize profits.

What has changed is massive government intervention, from lockdowns and restrictions to misguided Bank of Canada policy and huge increases in government spending.

Failing to grasp the basics

The Canadian government has imposed policies like the carbon tax that deliberately drive up costs.

They imposed lockdowns that shuttered businesses.

The Bank of Canada printed an immense amount of money, meaning there is far more money chasing fewer goods.

And spending has been through the roof, with inflationary deficits as far as the eye can see.

Singh ignores all of this.

And of course he does, because to admit that government is the problem here would be to admit that his entire statist ideology is harmful and is a key cause of the surging cost of living.

The last thing that Singh or Trudeau want is for Canadians to realize the extent to which our economy has been broken and distorted by the government and the Bank of Canada.

So, Singh is trying to find a scapegoat, and he’s decided that ‘the rich’ and ‘big corporations’ are who he’ll target.

That may be good politics among some who are misinformed, but it would be horrendous policy that would only make life even more expensive.

Spencer Fernando

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The establishment media will give Jagmeet Singh a free pass for pushing such foolish and damaging policies. But I won’t. If you support my writing, I would greatly appreciate if you can make a contribution through PayPal, or directly through Stripe below.


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