A Windsor MP says a G7 proposal to create a "fair and level playing field" for the global economy is promising.
She said a G7 deal is being proposed to tax multinational tech corporations and create a 15 per cent base tax for corporations globally that would, "end the race-to-the-bottom in corporate taxation."
Windsor-West MP Brian Masse says providing massive tax breaks to attract companies creates more problems than it solves.
"Canada has been part of that competing with the U.S. in many respects and what follows is a lack of resources for healthcare, education and a series of things with companies pitting country against country when it comes to tax rates to exploit labour and the environment," he added.
The New Democrat says a global minimum tax rate will prevent multinational corporations from evading domestic taxes.
"Including Canadians and others that area billionaires and millionaires that can squirrel away their money in the Isle of Man and other places and never pay a cent," he says. "It's going to be interesting if they address that as well. Corporate taxation at a base level is something Canada coming late to the table to, but it's good that we're doing that with others."
Masse says Bill C-10 is already in the works to attempt to force international web-platforms to pay domestic taxes and a global policy will advance that goal.
"Accountability for these web giants who are taking a lot of money from traditional media sources for advertising and not paying a single cent and that has to change," he says.
The endorsement from the G7 could help build momentum for a deal among more than 140 countries as well as a Group of 20 finance ministers set to meet in July.
The meeting of G7 finance ministers came ahead of the annual summit of G7 leaders scheduled June 11-13 in Carbis Bay, Cornwall.
— with files from The Canadian Press.