Canadians are battling soaring food prices, and corporate profits are part of the problem. The heads of Canada’s largest grocers will appear before a parliamentary committee to answer questions about their role in the increasingly unaffordable cost of food. It also proposes a profiteering corporate income tax to help struggling households and the economy.
Profit margins for Canadian companies have improved significantly, from an average pre-tax margin of 9% over the past two decades to nearly 16% in 2021. Preliminary figures for 2022 suggest margins remain high.
Companies are taking advantage of the turmoil in the global economy to boost profit margins, not just pass on higher costs.
Loblaw raised his total markup from 44.3% in 2019 to 46.7% in 2022 and denied taking advantage of inflation. Canadians would have saved nearly $900 million if Loblaw had stayed on from 2019. Metro and Empire saw similar increases in profits.
The federal government must impose a windfall profits tax on large corporations that have made billions of dollars over the past three years. Revenue from this tax can be used to help struggling families and economies such as B. Make life more affordable and cushion the blow of the coming recession by investing in affordable housing, dental and medical care.
Profit margins for Canadian oil and gas companies have risen sharply, from 8.5% in 2019 to 17% in 2021. Many of these companies pay little tax relative to their profits, with seven of the top 10 oil majors paying no income tax in 2019. 2021.
A windfall profits tax could be extended to all large corporations that make huge profits, regardless of their industry.
Canadians are feeling the grocery crisis, and it’s time to hold corporations accountable for their role in driving inflation. The government must impose a windfall profits tax on big corporations to help struggling households and economies. That tax could be used to invest in affordable housing, dental and medical care, making life more affordable and cushioning the blow of the coming recession. Now is the time for companies to pay their fair share and for the government to act to help Canadians.
