Canadians for Tax Fairness says $53 billion wealth boost is evidence that a wealth tax is necessary
The non-profit organization Canadians for Tax Fairness (CTF) has renewed calls for Ottawa to introduce a new tax on the country’s wealthiest individuals.
With the pandemic battering the finances of many average Canadians, while others have seen their finances flourish, the group wants the federal government to act now to address wealth inequality.
Earlier this year, a report by the Broadbent Institute showed that 3 in 4 Canadians are in favour of taxing wealthy people more to aid recovery.
CTF says that Canada’s top billionaires have added $53 billion to their wealth during the period from April to October, an increase of 28%.
“While millions of households are struggling to survive through the pandemic, our top billionaires have made out like bandits, including some who have cut pandemic pay for their front-line workers,” said Toby Sanger, economist and director of Canadians for Tax Fairness.
He added that the finance minister Chrystia Freeland should use the fall economic statement to “go where the money is” to help fund recovery.
Progressive taxation
CTF says that a progressive annual wealth tax on the richest Canadians, on wealth of over $10 million, could generate $20 billion annually. Other progressive tax reforms such closing tax loopholes and tackling tax havens could raise billions more.
“Billionaires have benefited from tax loopholes for the rich, corporate tax cuts, tax havens and the absence of wealth and inheritance taxes in Canada. The Trudeau government now has a golden opportunity to both reduce extreme wealth inequality and generate billions in revenue to help pay for the crisis and the recovery.”
But a recent report from the Fraser Institute concluded that a wealth tax would be damaging for the economy
