Budget season is almost upon us. In advance, we’re urging the federal government to establish an inheritance tax and a wealth tax.
We are members of families in the top 10 per cent — and the changes that we’re proposing would increase taxes on ourselves and our families.
Inequality has hit a historic peak. Canada is home to the 5th mostultra-high-net-wealth individuals on the planet. Here, the 87 wealthiest families collectively own $259 billion. Meanwhile, over five million people in Canada live below the poverty line. Almost half of Canadians worry about their ability to cover basic living expenses without taking on more debt. Greater inequality in developed countries is associated with higher rates of stress and mental illness, addiction, school bullying, and crime rates.
Furthermore, Canada needs the money.
We have a 10-year window to avert the worst impacts of catastrophic climate change. Every year we delay the transition to a renewable economy will be counted in lives lost, habitats destroyed, and species extinct. This requires massive government investment — to spur the development of publicly owned renewable energy systems; free public transit; and energy-efficient housing.
This includes a commitment to policy equity and justice, through investments in head-to-toe health care; affordable housing, and reparations for past wrongs, including monetary compensation to Black Canadians for the trans-Atlantic slave trade; and land repatriation for Indigenous nations, who have faced land theft since contact.
The good news: Canadians have more than enough wealth to pay for the economic and environmental transition we need.
For evidence, we need only look to the multimillion-dollar condos that sit empty in Vancouver and Toronto; to the private islands, first class air travel, and luxury vacations of the wealthiest; and to the millions in subsidies offered by provincial governments to private schools.
We are demanding the federal government establish a progressive inheritance tax that hits the top 10 per cent of estates, increasing to a marginal rate of 55 per cent on estates over $7.5 million.
For context, while 48 per cent of Canadians expect to receive an inheritance, the average size is just under $100,000 — a level which would not come close to being affected by this levy. Canada is also the only G7 nation without an inheritance tax.
We’re also calling for a wealth tax that hits the top 10 per cent of Canadians, increasing to a marginal rate of 10 per cent on each dollar of wealth over $20 million, exempting principal residences. Under this proposal, the Thomsons, Canada’s wealthiest family with net assets of $42.4 billion, would pay about $4 billion in 2020. After tax season, the Thomsons could still have over $38 billion — enough to buy more than 43,000 homes in Toronto.
These two policies affect only individuals in the top 10 per cent — those who have gained most from wealth concentration in the last 20 years. In contrast, the revenue from this tax would positively impact us all, helping fund affordable housing, breathable air and free child care.
Leading economists, including Emmanuel Saez and Thomas Piketty, are calling on governments to establish wealth taxes. Furthermore, polls show that most Canadians support a wealth tax.
We must place limits on the potential for wealth concentration. Doing so means creating an opportunity for a livable planet for everyone.
We invite you to stand with us, by signing our petition calling on the government to establish these two essential taxes in their 2020 budget.
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