Canadian Labour Congress

Canadian Labour Congress

June 02, 2005 11:35 ET

Tax Cuts Feed Offshore Tax Havens, Not Working Families

Attention: Assignment Editor, Business/Financial Editor, News Editor, World News Editor, Government/Political Affairs Editor OTTAWA--(CCNMatthews - June 2, 2005) - Large Canadian corporations used the generous tax cuts of recent years to stash larger amounts of money in offshore tax havens instead of delivering productive jobs-creating investments in Canada. This is only one among other startling findings in a research paper titled "The Dubious Case for More Corporate
Tax Cuts" distributed today to the members of the House of Commons' Standing Committee on Finance. The Committee is reviewing the two budget bills that prompted the very dramatic second reading votes two weeks ago.

"Corporations have shipped profits out of Canada in recent years, especially in 2004 when the net outflow reached almost $50 Billion," explains economist Andrew Jackson, director of social and economic policy at the Canadian Labour Congress who conducted that research. "More significantly, there has been a large and growing outflow to offshore financial centres (or tax havens), led by the financial sector which now has $72 billion invested in these centres."

Jackson invited the members of the Finance Committee to work quickly and to recommend that the full House of Commons adopt the two bills.

"When the promised investments in children, in skills, in housing and in infrastructure materialize, the two budget bills - C-43 and C-48 taken together - will make our economy more attractive. They will also provide results that working families will measure on their kitchen tables. That's why working people expect Parliament to pass these budget measures without delay," Jackson says.

The Canadian Labour Congress, the national voice of the labour movement, represents 3 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 137 district labour councils. Web site: www.clc-ctc.ca /For further information: Andrew Jackson, 613-526-7445 and 240-3869/ IN: ECONOMY, FINANCE, LABOUR, POLITICS, SOCIAL

Contact Information

  • Jean Wolff, Canadian Labour Congress
    Primary Phone: 613-526-7431
    Secondary Phone: 613-878-6040
    E-mail: communications@clc-ctc.ca