Thursday, Jan. 28, 2021
Toronto, ON: The Canadian Taxpayers Federation is urging Prime Minister Justin Trudeau to reject calls for a wealth tax in Canada as the federal government prepares the next budget.
“A wealth tax is not a serious plan to address the reckless spending coming out of Ottawa,” said Jasmine Moulton, Ontario Director for the Canadian Taxpayers Federation. “There’s no certainty it would work, but it would certainly cause a myriad of issues.”
The Canadian Taxpayers Federation released a report Thursday outlining the many problems associated with implementing a wealth tax in Canada. It also explores other countries’ experiences adopting – and, in most cases, abandoning – similar taxes.
The Parliamentary Budget Officer said that a wealth tax might have brought in $5.6 billion in 2020-21, but the federal government is currently spending $1.8 billion per day. At the current rate of spending, the federal government would burn through the estimated revenue from a wealth tax in a little over three days. Further, the Parliamentary Budget Office makes it clear estimates are subject to significant uncertainty.
Although the federal Liberal party voted against the NDP’s motion calling for a wealth tax on Nov. 16, NDP Leader Jagmeet Singh’s first criticism of the government’s fall economic statement was that it failed “to make the ultra-rich pay for the recovery.”
“The Canadian Taxpayers Federation is releasing this report now to warn Canadians about the problems associated with get-rich-quick schemes such as a wealth tax currently being floated by money-hungry politicians in Ottawa,” said Moulton. “Instead of raising taxes, this government should focus on getting its spending under control.”
The Canadian Taxpayers Federation’s wealth tax report is available at this LINK.
Ontario Director, Canadian Taxpayers Federation