The parliamentary budget officer says the federal Liberals’ planned tax on corporate share buybacks will raise $3 billion in government revenue over the next five years.
A new report prepared by Yves Giroux’s office assesses the projected impact of the tax on government finances between the 2023-24 and 2027-28 fiscal years.
The Liberals committed in their fall fiscal update to imposing a two percent tax on stock buybacks that would go into effect in 2024.
The mid-year budget update had estimated that the tax would earn the government $2.1 billion in revenue over the next five years.
The policy takes aim at a common tactic used to reward shareholders when a company is doing well, with the hope of incentivizing companies to reinvest profits into their operations….