I have pointed out that the major Canadian unions use cliches like “fair contracts” and “fair wages.” Another cliche that they (and social democrats or social reformers) use is corporations paying their “fair share of taxes.”
Let us look at this phrase for a moment. For corporations to pay their “fair share of taxes,” it is necessary that corporations in some way express something fair. If, for example, corporations were based on slave labour, would unions and social democrats call for the corporations paying their “fair share of taxes?” Or would they call for the abolition of such corporations since slave labour as such is unfair–no matter what the proportion of taxes corporations paid?
To call for corporations to pay their fair share of taxes assumes, without question, the legitimacy of corporations and the profit they receive. However, the profit corporations obtain is a result of the exploitation and oppression of workers (see for example ). To talk about corporations paying their fair share of taxes involves implicitly accepting and legitimating such exploitation and oppression.
Hardly any of the so-called left question the use of such phrases by these unions.
I have compiled some quotes from representatives of the Canadian Union of Public Employees (CUPE), the largest union in Canada. Most emphases (bold type) are mine.
- From December 14, 2021 (https://www.facebook.com/cupeontario/posts/existing-inequality-has-gotten-much-worse-over-the-course-of-the-pandemic-the-we/4883671278357563/) :
It’s time to level the playing field.
Existing inequality has gotten much worse over the course of the pandemic. The wealth of billionaires grew by billions while incomes for everyday Ontarians continues to fall behind the skyrocketing cost of living—making Ontario the province with the highest income inequality in Canada.
Far too many Ontarians are now stretched thin and stressed out.
We need to take action to reverse years of tax cuts for the wealthy.
The wealthiest must pay their share for the services that keep our communities strong. It’s time to institute changes to our tax system where those who can afford to pay more start paying their fair share.
- From National President’s Report, September 2021 (https://cupe.ca/national-presidents-report-september-2021):
CUPE rolled out regional plans, developed in consultation with our provincial divisions, that focused on building member engagement and showing our strong support for candidates who understand our union and our key issues. Things like including making corporations and the wealthy pay their fair share of taxes, so we can invest in critical programs like pharmacare, long term care, and child care.
…
We will continue, with the CLC and our allies in labour, to push our agenda forward – on child care, but also on long term care and pharmacare, on climate change and a just transition, and on making corporations and wealthy Canadians pay their fair share through taxes.
3. From March 2021 (https://cupe.ca/national-presidents-report-march-2021):
We will continue to defend our collective agreements and our members’ jobs. We will demand that large, profitable corporations and wealthy individuals pay their fair share of taxes. We will not allow our members to pay the price of austerity.
…
In the meantime, I had the opportunity to join other labour leaders in a pre-budget consultation meeting with the Minister of Finance on March 1. Together, we outlined our priorities for our members and the country, including: implementation of a national system of public, non-profit child care; eliminating for-profit interests from long-term care and bringing the sector into the public system and regulating it under the Canada Health Act; introducing a national, universal pharmacare program; the extension of emergency benefits for workers until much-needed changes to Employment Insurance can be made; worker-focused assistance for the airlines sector; and fair tax reform that would see profitable corporations pay their share and the government close tax loopholes.
4. From CUPE Ontario Convention 2019: Action Plan, pages (https://cupe.on.ca/convention2019/ ), pages 3-4:
16 This government is attempting to sell Ontarians on the idea that there is a budget crisis, and that there is no alternative to slashing public services. But we know that there is an alternative. Our publicly delivered services are more effective than private alternatives, and the public sector focuses on people rather than profit. The government only wants to talk about the deficit, but we know that we have a revenue problem, not a spending problem. We need to raise revenue by fairly taxing corporations and the richest among us, rather than by slashing public services. Policy decisions by the Ford government will reduce revenues by $2.1 billion in 2018-19, and by an average of $3.7 billion over the next four years. This is just not acceptable, especially in a time where the Ford government wants us to believe that there are not enough resources to go around.
…
23 ● Create materials to explain that Ontario has a serious revenue problem, not a spending problem. These materials will focus on fair taxation, including increasing taxes on corporations and the wealthiest in Ontario. The materials will offer an alternative to the Conservatives’ slash and burn approach.
5. From CUPE Ontario Convention 2017: Action Plan, pages 6-7 (http://chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://cupe.on.ca/wp-content/uploads/2017/02/Action-Plan-2017-as-amended-by-the-membership-with-covers.pdf):
Fair Taxes, Public Services and Good Jobs
35. Far too often, we talk about taxes and public services in isolation, as though they were
different from one another or not related to one another, instead of as a natural pair. It has been the plan of those on the right of the political spectrum to have us all overlook the
basic point that taxes pay for public services. Discussing taxes or public services separately
worsens the public narrative on this question. Instead, we need to re-establish that they
are two sides of the same coin, and talk about taxes and public services together. Working
with our community allies and other unions, we will encourage the ONDP [Ontario New Democratic Party–a social-democratic or social-reformist party linked to unions] to support fair taxation.36. Some politicians and commentators purposefully muddy the issue. The right wing, and
those on Bay Street have been campaigning for more than 30 years against taxes. As a
result, the belief that “we” pay too much in taxes is shared by many in our society. Of course, this ongoing campaign against taxes always completely ignores what taxes pay for – the public services that we all use and value day in and day out. And as a union we understand that tax cuts have only served to support the growing inequality in our communities, and have resulted in profitable banks and corporations paying the lowest level of taxes they have paid since the 1930s. The social safety net and the large set of benefits we all receive when in need are made possible through fair progressive taxation. Our opponents want us to forget that we all use public services, both directly and indirectly.37. The vast majority of public money is spent on things that we value, like healthcare, social services and education. Lowering tax rates means less revenue, which creates a structural problem of paying for public services. What we need is to increase public revenue to pay for the demand for more public services with fair and progressive taxation.
38. Corporate and high income earners have been successful in rigging the system in their
favour resulting in them not paying their fair share. Through a massive reduction in rates, an increase in boutique tax credits, and vast loopholes, the tax system is inherently unfair and is in desperate need of an overhaul. While these are important concerns that are the foundation of the revenue problems of governments at the provincial and federal level that we must continue to voice, we cannot stop the conversation there.39. We need to mobilize our members and their communities to campaign and lobby for
progressive taxation at all three levels of government. Those who can afford to pay more, and ought to pay more in taxes, like the wealthy, profitable banks and corporations, must pay their fair share. But beyond this important and essential advocacy, we need to help all our members feel proud to pay taxes themselves. “Tax” is not a four-letter word. We must work to view the taxes we pay as a form of care for one another in a society based on solidarity. This is a direct counter to an individualist worldview pushed by capitalism.
This last statement pays lip-service to a critique of capitalism. A real critic of capitalism would never talk of any corporation or bank “paying their fair share of taxes.”
6. From 2017 Post-Secondary Education: Our Choices, Our Future ( https://r.search.yahoo.com/_ylt=AwrFYntOtDZngwIAwmHrFAx.;_ylu=Y29sbwNiZjEEcG9zAzIEdnRpZAMEc2VjA3Ny/RV=2/RE=1732847950/RO=10/RU=https%3a%2f%2fcupe.ca%2fsites%2fdefault%2ffiles%2fbooklet_pse_our_choices_our_future_2017_june_en_0.pdf/RK=2/RS=BSptMutN7ZpIJNdHHCbC5Z_ncrs-), page 11:
THE CONSEQUENCES OF PRIVATIZATION
…
- Buildings named after banks and corporations that have contributed to the funding problems the sector faces by not paying their fair share of taxes.
7. From October 20, 2016 (https://cupe.ca/cupe-says-netflix-should-pay-their-fair-share):
CUPE says Netflix should pay their fair share
CUPE believes it is high time that Netflix contributes back into the Canadian economy by paying their fair share of taxes.The giant American entertainment service has grown rapidly over the years, posting revenues of over 6 billion dollars in 2015. The service has over 5.2 million subscribers, generating upwards of 620 million dollars in revenues in Canada alone. Despite this, Netflix does not pay any Canadian taxes.
“It is unfair that everyday Canadians go about paying their taxes while big companies are getting let off the hook,” said CUPE National President Mark Hancock. “Big corporations like Netflix should be paying their fair share. At this point, they’re not paying any.”
Canadian entertainment companies who pay taxes and employ local workers are doing their part while creating quality programming. “Local companies that provide Canadian jobs are playing by the rules while their competitors get a free ride,” said CUPE National Secretary-Treasurer Charles Fleury. “The government needs to step in to level the playing field.”
Netflix benefits not only from Canadian tax exemptions but also from lack of regulation. The CRTC has refused to have global digital players like Netflix follow the same regulations as Canadian broadcasters and cable operators, even if they offer comparable products and services. This allows Netflix to do business in Canada without contributing to the funding of Canadian programming or being required to offer a minimum amount of made-in-Canada content.
The federal government and the CRTC must step in to address the lack of regulation of global digital players like Netflix.
8. From October 3, 2016 (https://cupe.ca/don-kossick-and-tax-justice):
Don Kossick and tax justice
Oct 3, 2016
Former CUPE member and longtime community activist Don Kossick is well known in Saskatchewan as a tireless organizer for social and economic justice. Now he’s making bigger waves nationally and internationally with a campaign to get Cameco, the world’s largest publicly traded processor of uranium, to pay its fair share of taxes.
“Many people do not realize the billions that have been siphoned out of Canada that could go to health, education, human services, local development, etc. The response to our billboard campaigns and the petition signed by thousands show people want the Camecos of Canada to pay back what is owed,” said Kossick.
Last year Kossick, who also established a chapter of Canadians for Tax Fairness in Saskatchewan, raised money to erect a billboard in downtown Saskatoon headlined “Pay up Cameco”. This brought attention to the fact that Cameco, which was formed in 1988 by the merger and privatization of two crown corporations, was using subsidiaries in Switzerland to evade billions in taxes.
This year Kossick started a petition demanding Cameco pay its taxes; it garnered over 36,000 signatures. The Canada Revenue Agency is finally taking Cameco to court this September, aiming to recover $2.1 billion in taxes plus interest and penalties, which would be Canada’s largest tax evasion case.
Whether the CRA eventually wins or loses, this campaign for tax justice has already had a big impact, mainly by publicizing how certain large corporations avoid paying tax, how much it costs in lower revenues for public services, and by pressuring governments to make changes—and how activists like Don Kossick can make a big difference!
9. From September 6, 2011 (http://Welland – It’s time to let the wealthy pay their share to protect services and cut the deficit, CUPE Ontario leaders say):
WELLAND, ON – We cannot afford to keep giving handouts to the super-rich and to big corporations when public services are threatened and governments are facing huge deficits, said leaders of Ontario’s largest union, the Canadian Union of Public Employees (CUPE) at today’s Labour Day events around the province.
“The Liberals and PCs say tax cuts create jobs. We’ve been living with tax cuts for their corporate friends for a while now, and it has done nothing to help the nearly one in ten people out of work in Welland and the Niagara Region,” said CUPE Ontario president Fred Hahn at today’s Labour Day Parade in Toronto.
“We need to invest in good, stable jobs and stop handing over our hard-earned cash to CEOs who just pocket it and, as so often happens, shut their plants and kill jobs in communities. We need a strong, diverse economy and right now more and more average families need immediate help from the kinds of services delivered by CUPE members across the province,” Hahn said.
Hahn took his message to the provincial capital where, standing alongside CUPE national president Paul Moist and CUPE Ontario Secretary-Treasurer Candace Rennick, he said that a modest tax increase for the super-rich and rollbacks on some recent corporate tax cuts would help.
“We wouldn’t have a deficit problem if corporations and the mega-rich paid their fair share of taxes. We could have strong, stable services like care for people with developmental disabilities and we could stop closing hospital beds,” said CUPE Ontario President Fred Hahn.
By increasing the rate by just two percent for people making more than $500,000 a year, and closing the executive stock option loophole, the province would increase revenues by more than $500 million. Reversing the $2 billion Dalton McGuinty recently gave out in corporate tax cuts will return a further $2 billion to the province for a total of over $2.5 billion.
“A modest 2 percent tax increase would only affect the most wealthy, but would generate enough revenue to deal with the deficit and provide adequate funding for many of the social services that make life better for so many Ontarians,” Hahn said.
Noting that large banks and corporations in Canada are getting away without paying their fair share thanks to successive Liberal and PC tax cuts, Hahn pointed to a 2010 KPMG report, Competitive Alternatives, which shows that corporations in Canada pay less in tax than corporations in the United States or any major European country.
“Life has been getting more expensive, and corporate tax cuts mean average Canadians are lining the pockets of CEOs. That just isn’t fair,” Hahn said.
Labour Day events in the region include a Parade in St. Catharines beginning at 11:00 a.m. at the CAW Hall and ending at Lyons Community Park, and a barbeque at the CAW Hall.
The Canadian Union of Public Employees (CUPE) represents more than 230,000 workers in Ontario. Its members work in health care, at schools and universities, for municipalities and provide essential social services.
10. From January 19, 2011 (https://nb.cupe.ca/2011/01/19/government-should-re-establish-a-fair-taxation-system/):
Government should re-establish a fair taxation system
MIRAMICHI – Further cuts to public services either on the provincial or municipal level is not the remedy to the current financial situation in New Brunswick.
The three unions representing the City of Miramichi employees – CUPE Local 1387 Civic Employees; CUPE Local 3863 Inside Workers; and CUPE Local 4558 Firefighters – are very concerned with the possibility of further reductions in municipal services.
“Last night, members of the three unions met to discuss the city’s current financial situation”, explained Patrick Roy, CUPE Representative.
“The municipal workers are concerned the city might put the burden of the current financial situation on their shoulders.”
“We all know that the region is going through a difficult time. We may not be able to replace the jobs and the tax revenues lost from the mill anytime soon, but the provincial government can alleviate the situation by going back to a progressive tax system”, said Roy.
The government’s decision to reduce the income tax for the wealthy and large corporations has dramatically reduced its revenue base and its ability to properly finance municipalities who provide daily services to the citizens of this province.
“Earlier this week, Premier Alward met with the city officials and admitted that the region was under a lot a stress. The Premier can, if he wants, help alleviate this stress by re-establishing a fair taxation system instead of looking at cutting further public services. The loss of income tax revenues forced the province to reduce even further the annual unconditional grant municipalities receive to provide services such as water, sewage, garbage collection, recreational facilities, etc.”
“We need to generate revenues and, to do so, the government needs to go back to a progressive tax system where everyone is paying their fair share of taxes. It also means that municipalities have to consider slowly raising their taxes to offset the cuts from the provincial government.”
“We will continue to work closely with the city to provide good public services in our community. We believe we can help the city save more money by bringing back in house all municipal services,” concluded Roy.
Conclusion
CUPE, in addition to using such a social-reformist phrase as “fair contracts” uses the social-reformist or social-democratic phrase and cliche of “corporations paying their fair share of taxes.” Such a phrase implies that if corporations somehow pay their fair share of taxes, then they are legitimate and have a right to continue to exist. Since corporations exist only by exploiting and oppressing workers, however, such legitimation papers over such exploitation and oppression. The radical left should criticize such cliches and the organizations which express them.
