Gender-based analysis has become standard practice in the federal budget process, and there is a commitment to deepen the intersectional analysis in future years. While the government continues to strengthen its gender budgeting approach, this is undermined by a lack of progress on creating a fairer tax system. The government made bold promises in 2015 to crack down on tax avoidance and close tax loopholes but has dragged its feet and scaled back commitments in the face of vigorous business lobbying. Corporate income tax rates remain low in Canada and preferential tax rates for stock options have not been implemented. The upcoming review of government spending and tax expenditures should involve independent experts with expertise in gender-based analysis to expose systematic inequalities. Tax evasion and avoidance must also be tackled at the global level to stop a race to the bottom on corporate tax policy. Canada has taken some positions that are holding back international tax reform efforts.
In December, the government introduced a new tax measure promised during the election to reduce taxes paid by lower- and middle-income Canadians. The Parliamentary Budget Officer estimates that this will reduce government revenues by $21 billion over the next five years as a result. Opposition parties criticized the measure for not being worth such a massive budget reduction and for not being more targeted to low-income Canadians.
