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'Wasteful' government spending on 'corporate welfare' could be replaced by business tax relief, says study
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Yahoo News Canada - Latest News & Headlines
Federal and provincial government spending on "corporate welfare" increased by 142 per cent between 2019 and 2024 — an expense that leaders at the Fraser Institute call "wasteful spending."
The independent think tank published a study on Tuesday which found that there was a marked increase in spending on corporate subsidies beginning in 2015.
"It's wasteful spending at the expense of Canadian taxpayers and places government in the position of picking favoured businesses.
Advertisement AdvertisementAdvertisement AdvertisementAfter comparing corporate income tax with spending on corporate subsidies, the authors suggest "corporate welfare" could be eliminated, with the resulting savings being directed to lowering business taxes by over 80 per cent.
"Governments in Canada have an opportunity to substantially boost economic growth by eliminating corporate subsidies and directing the savings to broad-based business tax relief."
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