With the 2021 Canada Election looming for September 20, the wealthy are bracing for potential tax changes. Many Canadians are voting with tax and income equality in mind and the New Democratic Party (NDP) will be the reason why a wealth tax may be implemented.
If voted in, the NDP plans to tax one percent on every bit of wealth over $10 million. There is a 115-page document outlining the NDP’s promises. Some of these include taxing businesses that profited during the Covid-19 pandemic.
Canadian people want to see the wealthy be taxed their fare share to benefit people in need. In a survey, 89 percent said they are likely to vote for a party who will take action taxing the wealthiest individuals and corporations.
Parliamentary Budget Officer Yves Giroux found that based on the NDP’s original wealth tax plan in 2020, even if only targeting those with a net worth of over $20 million would rake in over 5 billion dollars.
Due to the sheer amount of money some wealthy people have, this policy would see a lot of money put into funding various public services. Additionally, the money would help fund recovery of the economy post pandemic.
Although, some fear that wealth and income need to be distinguished, to not accidentally tax someone twice. If the money you earn is already taxed, and then is taxed additionally because of the implementation of a wealth tax – it would be unfair.
Many elements make a wealth tax complicated such as distinguishing asset wealth and income. That said, it looks like the consensus is that it is time to tax the wealthy properly. With many Canadians struggling throughout the Covid-19 pandemic, it is the final straw and many no longer want to see the wealthy dodge their obligations to the community.
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