In a December 6, 2019 article by Doug Alexander on BNN Bloomberg entitled, “Canada’s bankers face the bleakest bonus year in almost a decade” we learn that in 2019, Canada’s Big Six banks racked up a record $46.6 billion in annual net income and reserved $15.6 billion for bonus payouts. Interesting that what has been categorized as “bleak bonuses” for bankers in one single year could almost pay to fix the entire $16.3-billion of disrepair that has accumulated in Ontario’s publicly funded schools over the past two decades.
How can we pay for infrastructure upgrades?
Corporate taxes: Canadian bankers have 'bleak' bonuses totally $15.6 BILLION this year. Enough to repair most schools 🏫🏫 across Ontario… from north to south, east to west. #onted #onpoli https://t.co/H8UWK6ltk3— Fix Our Schools (@Fix_Our_Schools) December 8, 2019
We’re not suggesting that bankers across Canada ought to be responsible for providing the funding to fix Ontario’s schools. We are, however, suggesting that corporate taxes are key and that, perhaps, Canada’s banks ought to be contributing more to the public coffers.
According to Statistics Canada, pre-tax profits in the banking sector as a whole soared by 60 per cent from 2010-2015. However, during that same period, the sector’s tax rate dropped by almost the same amount. This can be attributed to both repeated corporate tax rate cuts and also to the fact that Canada’s largest corporations use complex techniques and tax loopholes to reduce their taxes significantly below the official corporate tax rate set by the government. It would seem that banks reduce their taxes by far more than other corporations since, in 2015, businesses in the rest of the economy paid taxes at a rate triple that of banks.