09/05/23

CANADA: Proposed federal wealth tax could bring in nearly half a trillion dollars.

As published on ckpgtoday.ca, Tuesday 9 May, 2023.

A new report from a Canadian research institute has said a federal wealth tax would bring in billions of federal revenue.

The Canadian Centre for Policy Alternatives released a report today exploring a potential federal wealth tax. Up to date modelling by the CCPA of a moderate wealth tax shows that this tax could provide a large source of ongoing revenue for public investment.

The potential revenues from a federal wealth tax could go to towards public transit investments, free tuition for post-secondary education, and 100,000 non-market affordable homes each year.

Hemingway modelled revenues for a wealth tax applying to net wealth above a threshold of $10 million with three brackets and rates: 1% above $10 million, 2% above $50 million and 3% above $100 million.

Proposals for a wealth tax tend to have consistent support among the population, with 89% of Canadians in favour of a wealth tax, according to the CCPA.