Toronto, ON: The Canadian Taxpayers Federation is criticizing the Trudeau and Ford governments to for giving $5 billion to the Honda Motor Company.
“The Trudeau and Ford governments are giving billions to yet another multinational corporation and leaving middle-class Canadians to pay for it,” said Jay Goldberg, CTF Ontario Director. “Prime Minister Justin Trudeau is sending small businesses a bigger bill with his capital gains tax hike and now he’s handing out billions more in corporate welfare to a huge multinational.
“This announcement is fundamentally unfair to taxpayers.”
The Trudeau government is giving Honda $2.5 billion. The Ford government announced an additional $2.5 billion in subsidies for Honda.
The federal and provincial governments claim this new deal will create 1,000 new jobs, according to media reports. Even if that’s true, the handout will cost taxpayers $5 million per job. And according to Globe and Mail investigation, the government doesn’t even have a proper process in place to track whether promised jobs are actually created.
The Parliamentary Budget Officer has also called into question the government’s claims when it made similar multi-billion-dollar handouts to other multinational corporations.
“The break-even timeline for the $28.2 billion in production subsidies announced for Stellantis-LGES and Volkswagen is estimated to be 20 years, significantly longer than the government’s estimate of a payback within five years for Volkswagen,” wrote the Parliamentary Budget Officer said.
“If politicians want to grow the economy, they should cut taxes and red tape and cancel the corporate welfare,” said Franco Terrazzano, CTF Federal Director. “Just days ago, Trudeau said he wants the rich to pay more, so he should make rich multinational corporations pay for their own factories.”
Jay Goldberg is the Ontario Director for the Canadian Taxpayers Federation.
For more information call:
Jay Goldberg, CTF Ontario Director | Cell: 416-567-5576
Email: jgoldberg@taxpayer.com | Twitter: @JayJGoldberg
Franco Terrazzano, CTF Federal Director | Cell: 403-918-3532
Email:fterrazzano@taxpayer.com
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