Banks Emerge as Election Losers on Trudeau ‘Rifle Shot’ Tax (1)

The banking industry could be among the clearest losers from Canadian Prime Minister Justin Trudeau’s re-election to a third term.

Trudeau last month pledged that, if re-elected, he’d increase the tax rate on bank and insurer profits over C$1 billion ($780 million) by 3 percentage points to 18%. He also announced a vaguely defined, temporary Canada Recovery Dividend to be levied on the banks because they’ve bounced back quicker than other industries. The measures would raise a combined C$10.8 billion over the next five years, according to Trudeau’s platform.

Justin Trudeau

Photographer: David Kawai/Bloomberg

The campaign promises represent a far more aggressive ...