- A pandemic excess profit surtax
- An increase to the capital gains inclusion rate
- A luxury tax
- A wealth tax
- An increase to the corporate income tax rate
There is also a vague suggestion that they will “ensure that internet giants like Facebook, Google and Amazon pay their fair share of taxes,” although they do not say how.
Additionally, the NDP states that they will close tax loopholes, such as the use of offshore transactions with no clear economic purpose. They also advocate increased funding for Canada Revenue Agency’s enforcement on international and corporate taxation.
C4TF has called for many of these measures for years. A recent poll also shows incredibly high levels of public support for several of these measures, especially a wealth tax.
While we welcome the NDP including the above measures, we think that the Canadian government can, and should, go further.
For example, the NDP plans to implement a 1% wealth tax on fortunes over $10 million. We believe that the wealth tax should be progressive, just like the income tax. The tax should rise to 2% on wealth above $100 million, and to 3% past $1 billion.
Or, for instance, the NDP wants the capital gains inclusion rate increased from 50% to 75%. However, there is little reason capital gains, which are overwhelmingly collected by the already wealthy, should enjoy a lower tax rate than income earned by workers. We advocate for the complete elimination of the capital gains exclusion. We believe income from investments and income from employment should be taxed at the same rate.
Other measures we would like to see are the addition of a new top marginal rate for annual incomes greater than $750,000, a tax on financial activities, and a minimum tax on corporate book profits.
Overall, we are glad to see tax fairness given attention by the NDP and we hope it inspires the other parties to follow suit.