Trudeau Targets Big Canadian Banks, Vowing Surtax on Profits (2)

Prime Minister Justin Trudeau took a populist turn in Canada’s election campaign, pledging to impose a 3% surtax on the nation’s big banks and insurers.

At a campaign stop in Vancouver, the leader of the governing Liberals promised to hike the corporate income tax rate by three percentage points on profit over C$1 billion ($793 million) at financial institutions. The measures, which would bring the rate to 18% from 15% currently, are expected to generate C$2.5 billion for government coffers over the next four years, starting in 2022, according to a party news release.

Justin Trudeau speaks during an Ottawa news conference on Aug. 15 after calling a snap election.

Industry groups bristled, calling ...