Committee
Consult the user guide
For assistance, please contact us
Consult the user guide
For assistance, please contact us
Add search criteria
Results: 1 - 15 of 37
Jerry Dias
View Jerry Dias Profile
Jerry Dias
2021-05-20 12:51
Thank you very much, Mr. Easter.
Good afternoon, Mr. Chair and members of the committee. I’m pleased to be here today to provide input on the budget implementation bill. My name is Jerry Dias, and I'm the national president of Unifor.
Just as an aside, it's always my pleasure to appear before many MPs I have had some stimulating debates and conversations with over the years. Once I give my presentation I'm going to have to get off the call. I'll be speaking to the Prime Minister very shortly on a variety of things, but also I have my national executive board meeting going on as we speak and I'm going to get to that once I'm finished with the Prime Minister.
Since the beginning of the pandemic, Unifor has advocated for governments at all levels to put policies in motion to build a fair, inclusive and resilient economic recovery. We call it our “build back better” plan. This year’s budget and the first budget implementation bill show the government is at least on the right track. There are a number of items in the bill that are a good start but need some improvement.
These are the items I will bring to your attention today. First, I want to address the minimum wage. Reinstating the federal minimum wage and increasing it to $15 an hour is a long overdue move. It will significantly impact more than 67,000 people working in the federally regulated sector, but $15 an hour is no longer adequate. The truth is that we’ve been calling for a $15 minimum wage for many years now. It may have been enough five years ago, but it's certainly not enough today.
Frankly, the government was talking about implementing this in 2019, and even then it would have been somewhat short. The minimum wage should be set at 60% of the median wage for full-time workers. This was the recommendation of the government’s own expert panel on modern federal labour standards. Following this policy would set the minimum wage at $16.73. Government should be adjusting the minimum wage annually by inflation or by the average annual wage increase, whichever is higher, and establishing a federal low-wage commission to monitor the impact of low wages on workers and the labour market.
Second, I want to address the employment insurance and recovery benefit extensions.
Extending the wage subsidy program is an important step in keeping workers employed during this tumultuous time. The ramp-down rates make sense in many circumstances, but for the hardest-hit sectors, such as air transportation, this change can make the difference between a worker keeping their job or not. We recommend increasing the top-up rate for companies with significant, persistent revenue decline, as they may not be eligible for the Canada recovery hiring program because they are not yet ready to hire new workers.
The executive compensation rule for publicly traded companies should be applied for all wage subsidy support received in 2021, and not just what is received after June 5.
The extension of the Canada recovery benefit and the temporary changes to employment insurance are important. Together, EI and the CRB have illustrated the incredibly important role income support plays in stabilizing workers' lives and the need to fix our currently broken EI system with permanent reforms. We recommend some additional items to strengthen the positive effects these programs can have, including reducing the qualifying hours from the current 420 to 360, and maintaining the minimum benefit rate at $500, while increasing the income replacement rate.
Third, the budget takes an important step in stabilizing employment at airports by reducing some of the negative effects of contract flipping. We support the change and encourage consultation on the regulations in order to ensure all workers are protected by it. In order to further reduce the negative effects of contract flipping, government should extend successor rights.
Fourth, implementing the digital tax on digital giants and extending HST to streaming services are important steps to creating a level playing field and ensuring that large, digital corporations are paying their fair share. We're very concerned that the laws put in place will result in the digital giants not paying their fair share. That outcome would be unacceptable.
Fifth, the modest changes to OAS acknowledge that the current retirement security system does not provide adequate income for retirees, but it is not enough. Government should be exploring innovation in providing defined benefit plans for workers instead of looking to modest changes for the worst off and annuities that mimic retirement security provided by a DB plan, but deliver less.
Finally, the nod to the importance of Canada-made, zero-emission vehicles through tax incentives is incredibly important and a worthwhile endeavour. I will take a moment to remind folks that we do not yet build ZEVs in Canada. We have to keep this in mind as we consider ways to encourage consumer adoption, but we don't need millions in public dollars subsidizing imports. If we want to build this industry in Canada, and I think we do, all policies, including the development of charging stations, must move in lockstep with our industrial development plans.
Thank you. Kaylie will look forward to taking your questions.
Once again, thank you all very much for your time today.
View Peter Julian Profile
NDP (BC)
Thanks very much, Mr. Chair.
Thanks to all our witnesses for coming forward with such compelling testimony. We also hope that you and your families continue to be safe and healthy during this pandemic as the third wave crashes on our shores.
I'd like to start by asking questions of Ms. MacEwen.
First, on behalf of the committee, I deeply thank the workers of the Canadian Union of Public Employees, who are often the frontline workers, health care workers and first responders across the country who have shown incredible courage in helping as many Canadians as possible get through this pandemic.
I also want to congratulate you, Ms. MacEwen, on your new book Share the Wealth!, which you co-authored with Jonathan Gauvin. Hopefully we can get a bulk rate for the finance committee, because I think each member of the finance committee should read your book. That's my first question, really.
You've raised an astounding figure that I wish our mainstream media would talk about more often—the $50 billion annually that has been lost as a result of tax cuts and a whole variety of loopholes. It goes to the ultra-rich in our country, $50 billion every year. In terms of what that would mean for seniors, what it would mean for students, what it would mean for families, what it would mean for the homeless and what it would mean for indigenous communities, it's absolutely unbelievable. Instead, we've seen, as you mentioned, a slashing of public services when what we really need to do is to stop the massive leakage from the very wealthy among us.
How important is it for us to put into place a fair tax system so that every Canadian pays their fair share and we have the wherewithal to ensure that Canadians get their needs met?
Angella MacEwen
View Angella MacEwen Profile
Angella MacEwen
2021-05-20 13:24
I think it's critically important, and it's really important to look at the whole system, as we say, instead of having small token pieces. The token tax on aircraft singles out a tiny sliver of what we're talking about in terms of wealth, as one of the presenters here today said, and there are huge amounts of wealth in Canada that are going untaxed right now.
We could increase taxes, as I said, by $50 billion a year, and only be taxing the top 1% of wealth owners and top 10% of income earners more, and we could afford pharmacare and we could afford to eliminate student loan payments. We could implement dental care and we could train workers for the coming change in the economy. It's recently been said that we're going to be creating too many green jobs for the number of trained workers that we have, so all of these issues are of the utmost importance. We need to have the resources available to act on them.
I just want to say I agree with Mr. Balsillie that we also need those economic frameworks in place in order to act on them. We can't just be handing out money. This is not about helicoptering money to make the economy work better. We need to be very strategic and thoughtful about how we're spending this money in order to get the most benefit out of it.
Toby Sanger
View Toby Sanger Profile
Toby Sanger
2021-05-18 11:07
Thank you very much, Chair, and good morning members.
There are a lot of positive measures in Bill C-30, and I'd like to commend the government for introducing them. These include the $15-an-hour minimum wage, extension of COVID and EI benefits, funding for child care, funding for infrastructure, funding for health care and much more. We're glad the federal government will finally apply the GST, starting July 1, to imports of digital services, short-term rentals through digital platforms and goods supplied through fulfillment warehouses like Amazon. This is long overdue but still appreciated, and it is one step towards levelling the digital playing field.
For far too long, Canada has given foreign digital giants—some of the largest companies in the world—generous tax preferences at the expense of Canadian companies and producers. This has contributed to hundreds of business closures, thousands of jobs lost and billions in revenue foregone. Since the pandemic began, it has only gotten worse, as sales by companies like Amazon have exploded while main street businesses across Canada have suffered enormously. The government should eliminate the tax deduction for advertising on foreign Internet platforms. This has contributed to billions in advertising flowing to Google and Facebook, and loss to Canadian media outlets.
We're glad to see the government commit to introducing a digital services tax on the revenues of foreign e-commerce giants starting next year, but the proposed tax will only apply to a small number of companies in specific sectors. Because a digital economy can't be ring-fenced, the Canadian government must also support fundamental international corporate tax reforms at the OECD negotiations now taking place, including support for a global minimum corporate tax at 21% or higher, as U.S. President Joe Biden has proposed; treating multinational enterprises as unitary enterprises for tax purposes; and allocating the profit of multinational enterprises among countries using real economic factors, just as we do among provinces in Canada.
We're glad the government has also finally taken some action on restricting a number of corporate tax loopholes and the stock-option deduction loophole. However, we believe the stock-option deduction loophole should be completely closed instead of just partially closed.
This government should also take inspiration from U.S. President Joe Biden, who is planning to eliminate lower tax rates on capital gains for the wealthiest. It's unconscionable that the wealthiest in society pay a lower tax rate on their investment income than ordinary working people pay on their employment income. This is something that wealthy investors, such as Warren Buffett, Bill Gross and Bill Gates agree with eliminating.
Speaking of the wealthy, inequalities of wealth have only gotten worse during the pandemic, with Canada's billionaires increasing their fortunes by about $80 billion over the past year. A mildly progressive wealth tax on fortunes of over $10 million could raise about $20 billion a year. I'm glad that this government has committed to identifying ways to tax extreme wealth in its throne speech, but disappointed that there was nothing about it in the budget. A large majority of Canadians, including Conservative supporters, support having a wealth tax. Even the IMF and OECD both recently called for countries to introduce and expand inheritance and wealth taxes. I hope to see them in a number of different election platforms soon.
Just as Canada's billionaires have become much wealthier during the pandemic, many large corporations have made record profits. The study we released yesterday revealed that 50 of Canada's large corporations made record profits last year, with a number of them also collecting the CEWS wage subsidy and paying low rates of tax. When the CEWS program was first introduced more than a year ago, I was the first to call for much stronger conditions. This would have prevented the type of misuse and wastage of public funds that we've seen with this program. We should now do what we did during the world wars and what the IMF recently suggested and introduce an excess profits tax and pandemic surtaxes on those who have profited excessively during the pandemic, to recover some of those public funds.
We're glad the government is making carbon incentive payments more visible. We've advocated for this for many years. However, the federal carbon pricing framework also needs to be significantly strengthened by ensuring that large emitters pay the full carbon price and by applying carbon tariffs and rebates on imports from and exports to countries without carbon pricing so that Canadian industry and jobs aren't adversely affected. We also need to finally eliminate the federal fossil fuel subsidies. It's long overdue that we end this climate hypocrisy.
Finally, I'd like to commend the finance Minister for committing to introduce a public registry of the real owners of companies. This will help reduce money laundering, tax evasion, and other criminal activities.
The federal government should also increase transparency and accountability in other ways, including strengthening whistle-blower protections, and requiring that large multinational corporations publish country-by-country reports of their sales, profits and taxes paid.
Thanks very much, and I look forward to a further discussion and questions.
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you, Mr. Chair.
Good afternoon, Minister. Thank you for being here.
Thank you, as well, to your team of officials.
Minister, the bill contains a slew of very positive measures. I have a limited amount of time, so I will focus on those I have questions or comments about.
I'll start with division 8 of part 4, which enacts the Retail Payment Activities Act.
I realize that legislation in this area is needed given the current void, so I applaud the measure. I will continue to examine how the legislation will interact with the Quebec Civil Code, which governs person-to-person transactions. I want to better understand why the federal government is regulating these activities.
Right now, though, I am mainly interested in hearing about your plans for the tech giants, major online retailers such as Amazon and Walmart. Does division 8 of part 4 allow them, either directly or indirectly, to provide services currently offered by financial institutions?
View Chrystia Freeland Profile
Lib. (ON)
Good afternoon, Mr. Ste-Marie. I always appreciate your questions and comments.
Initially, I thought you were going to ask about the taxes we will be collecting from tech giants thanks to this budget.
As far as financial services are concerned, as you know and as you pointed out, we talked about engaging in a discussion, a consultation. That's what we are proposing.
View Gabriel Ste-Marie Profile
BQ (QC)
Once the consultation process for division 8—which enacts the Retail Payment Activities Act—comes to an end, you have no plans to give Amazon, Walmart and other tech giants the same ability that financial institutions have to provide payment tools.
View Chrystia Freeland Profile
Lib. (ON)
No.
We realize three things.
First, we understand that Canada's situation is unique. The reality is that the Quebec Civil Code exists, as you said, and any actions we take must be acceptable to all the provinces and territories. That makes Canada's situation unique.
Second, we understand that this is the 21st century. Technology and the global economy are changing rapidly, so we need to pay close attention to those changes. Canada and Quebec want to—and must—be part of the modern economy.
Third, we must always protect Canadian businesses and citizens. That means ensuring the playing field is always level for Canadians and foreign companies.
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you.
My first question is for Mr. Marsland.
As I understand it, the government intends to charge tech giants a 3% tax or royalty on their operations. The contribution would be equivalent to the taxes other companies have to pay. However, an international company that provides an online streaming service where users can watch movies or television series would not be subject to the 3% royalty or tax. Is that correct?
Andrew Marsland
View Andrew Marsland Profile
Andrew Marsland
2021-05-11 17:53
As I explained in my earlier response, the proposed tax will apply on certain revenues associated with value creation in Canada. That value creation typically comes from the monetization of user data in Canada, in such a respect the proposed tax is really quite similar to those in place in other G7 countries, for example, in France, Italy, and the United Kingdom. In a similar fashion, the proposal is to get at that value creation in Canada. Companies that fall within the scope of that would be required to pay it on a certain portion of their revenues that is associated with that value creation, which is typically the monetization of user data.
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you for your answer.
I need some clarification. Let's say a person buys something online from a tech giant and pays $20 Canadian for a product made in China. The company making a profit on the transaction will not have to pay a royalty since there was no value creation in Canada, the product having been made in China.
Is that what you said? Do I have that right?
Andrew Marsland
View Andrew Marsland Profile
Andrew Marsland
2021-05-11 17:55
In a sense, Mr. Chair, that is what I'm saying. If you think about that analogy, a Canadian exporter who exported, for example, an agricultural product to China would not be subject to tax in respect of that economic activity in Canada unless they had a physical presence in the destination country and had a branch there and added value there. In a sense it's like that. As I mentioned earlier, the bill does include measures to ensure the appropriate taxation of the consumption through the GST or HST in Canada.
View Peter Julian Profile
NDP (BC)
Thank you very much, Mr. Chair. I understand now why the minister was stepping so gingerly around this, and I understand why you, Mr. Marsland, are stepping so gingerly around this.
Netflix is out of scope, so my question to you is what percentage of the overall web giants are excluded—“out of scope” would be the words you used—from the actual application of the digital services tax?
While I have the microphone, my second question, which the minister also avoided answering, is, at this point, how much money has been spent on Trans Mountain? We were told last year it's the Canada account of the EDC that is used to basically launder the money and take it. The PBO tells us it's $14 billion for construction and another $4.5 billion for purchase. We're at roughly $18.5 billion for Trans Mountain. What are the finance department figures on how much has been actively spent so far?
Those are my two questions—the percentage of digital services that are excluded or web giants that are excluded because they are out of scope, and then the cost of Trans Mountain.
Andrew Marsland
View Andrew Marsland Profile
Andrew Marsland
2021-05-11 17:57
Thank you for the question, Mr. Chair. I always step gingerly at this committee.
I can't really answer the question, because I'm not sure how to apply a percentage to what. What I can say is that the scope of this proposed tax is very similar to the scope of equivalent taxes in other G7 countries and elsewhere in that they typically apply on the types of revenues that I described earlier.
I'll turn it over to Ms. Dancey for the same questions.
View Peter Julian Profile
NDP (BC)
Thank you very much, Mr. Chair.
Mr. Giroux, you spoke earlier about measures that could be taken against the web giants. You mentioned a tax that could generate $2 billion to $3 billion. However, these measures don't take into account the excessive profits that these giants may have made during the pandemic.
What tools do you need to properly calculate excessive profits of a sector that doesn't typically provide accurate sales and revenue figures?
Results: 1 - 15 of 37 | Page: 1 of 3

1
2
3
>
>|
Export As: XML CSV RSS

For more data options, please see Open Data