Social Policy in Ontario

Tax the Rich: Forging a future for the many, not the few

Posted on July 22, 2021 in Governance Debates

Source: BroadbentInstitute.ca — Authors: BroadbentInstitute.ca

Broadbent Institute.ca – tax_the_rich
July 22, 2021.

This is according to a new Parliamentary Budget Officer report, requested by Liberal MP Nate Erskine-Smith. Plus, South Korea’s new proposal to tax excess profits of corporations.

The evidence for a wealth tax keeps increasing. As per PBO’s latest numbers, a one-time 3% tax on Canadians with net wealth over $10 million, and 5% tax on net wealth over $20 million could raise upto $82.5 billion over five years.

Liberal MP Nate Erskine-Smith for Beaches-East York commissioned the report, even though most liberal MPs and Justin Trudeau voted against instituting a wealth tax last fall (Erskine-Smith abstained), and stayed silent on the issue in the spring budget. In terms of raising tax revenue to aid pandemic recovery, #Budget2021 only included minor taxes on digital services and luxury items, which together will raise $729 million annually.

Previous PBO reports found that:

• A one-time excess pandemic profits tax could raise almost $8 billionin revenue.
• A 1% wealth tax on assets over $20 million would raise $5.6 billion from about 13,800 Canadian families.

By instituting wealth tax, a pandemic profits tax, and closing tax loopholes, Canada stands to gain over $50 billion dollars in revenue every year for #ClimateAction, expanding healthcare, bolstering social security systems, providing clean drinking water in Indigenous communities and improving infrastructure.

In other news, at the G-20 meeting of finance ministers, South Korea has proposed a 20% tax on excess profits of multinationals to aid pandemic recovery, and in efforts to introduce tax reform measures to the country. This proposal came after G7 countries committed to a global minimum corporate tax rate of 15%.

Read more on tax justice and share

• South Korea proposes a 20% tax on excess profits of multinationals to aid pandemic recovery.
• Wealth tax is too popular an idea among the Canadian public for it to not be a ballot box issue in the next election.
• Broadbent’s latest blog post on how the super wealthy get rich while paying little in taxes.

Want to do more to get tax reform in Canada?

Sign our petition to tell your MP to commit to tax justice by instituting a wealth tax, an excess pandemics profits tax, and close tax loopholes.

Share this petition on social media telling your network that you’re fighting for a tax system, where everyone pays their fair share.

https://www.broadbentinstitute.ca/tax_the_rich

Tags: economy, Health, ideology, Indigenous, jurisdiction, standard of living, tax

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