On March 22, the Minister of Finance of Quebec, Eric Girard, will deliver his last speech on the budget before the elections next October.
Posted at 2:00 p.m.
While the past two years of crisis have underscored in great detail the indispensability of our public services, they have also highlighted the disastrous impact of decades of cutbacks and austerity. The pressure exerted on our public services has become untenable, as evidenced, for example, by the shortage of workers in the health and social services, education and childcare sectors.
Working in these sectors is no longer attractive, because of the demotivating, even discouraging, working conditions that prevail there.
Moreover, poverty is on the rise for many households, which are finding it increasingly difficult to find housing and have to resort to food banks. Social assistance recipients are also pushed into extreme precariousness. At a time when the consequences of social inequalities are being felt hard in our communities, our social programs also need to be strengthened more than ever. And what about the chronic underfunding, particularly in the environment, which affects our ability to initiate the necessary ecological transition?
Taxing the wealth of the richest
In this context, it seems essential to us to ask the richest, banks and large companies to contribute more by revising our taxation. Among the measures being considered is the implementation of a wealth tax. This idea put forward by a good number of multi-millionaires, in particular those grouped within the Millionaires Against Pitchforks, who admit to taking advantage of the tax environment to enrich themselves at the expense of social stability, is currently the subject of reflection in several States. We propose that this tax take the form of a tax on the wealth of the richest 1% in our society. According to calculations made by the Coalition Main rouge, such a tax could bring in more than $4 billion in additional revenue each year for the Quebec state. Imagine the services that the population could benefit from with the contribution of such a sum for the collective good.
It should be remembered that during the pandemic, the wealth of the 1% has increased significantly. For example, according to Oxfam, the fortunes of the 10 richest men in the world doubled in the first six months of the pandemic while for all of us, they have rather stagnated, if not decreased. The organization Canadians for Tax Fairness comes to similarly worrying conclusions in Canada. Faced with this extraordinary enrichment, income tax marks its limits because the value of the assets of the richest, real estate for example, increases without it being necessary to declare it.
The revenue generated by this tax could make it possible to better finance services to the population and thus contribute to reducing social inequalities.
At the same time, we invite the Minister of Finance to consider the other tax measures advocated by the Coalition, which would make it possible to generate nearly $10 billion. For example, the government could increase the number of income tax brackets or restore a better balance between personal and corporate taxation.
It is high time for François Legault’s government to truly work for the majority of Quebecers it claims to represent rather than perpetuating a tax system that only enriches a tiny part of a pampered elite. In this sense, the March 22 budget represents a golden opportunity to correct current injustices.
* Benoît Lacoursière is Secretary General and Treasurer of the National Federation of Quebec Teachers (FNEEQ-CSN); Véronique Laflamme is spokesperson for the Popular Action Front in Urban Redevelopment (FRAPRU).
** The Coalition Main rouge has brought together union, feminist, community and grassroots organizations since the fall of 2009 to demand access to universal, quality public services.