Ottawa’s plan to tax big bank profits will flow to consumers: Scotiabank CEO – National
The ultimate message to Scotiabank shareholders from its president and CEO’s annual handle: the next tax on the nation’s largest banks is a tax on you.
Brian Porter known as a tax hike that’s broadly anticipated to be included in Thursday’s funds a “knee-jerk response that sends the fallacious message to the worldwide funding group.”
He made the feedback in written remarks ready for Tuesday’s annual shareholder assembly, however he didn’t ship the handle in individual.
Throughout the 2021 election marketing campaign, Prime Minister Justin Trudeau promised the next company tax charge for the nation’s largest banks and insurance coverage corporations on earnings over $1 billion, a measure the Liberals estimated would herald about $1.2 billion a 12 months.
The Liberals additionally mentioned they may transfer ahead on taxing monetary establishments “within the close to time period” within the confidence and provide settlement with the NDP, one thing chief Jagmeet Singh has mentioned will assist the wealthiest pay their justifiable share.
The six largest banks made $46.6 billion in earnings in 2019, based on the Canadian Bankers Affiliation.
However economists argue that whereas the coverage makes for “nice optics,” it gained’t result in decrease financial institution earnings since they’ll go the additional price on to prospects and employees.
