Smart tax policy is one of the most direct ways of closing the ever-widening wealth and income gap in Canada.
Here at Tax Fairness, we've been spreading that simple message for years.
A new survey done by the Broadbent Institute shows that the majority of Canadians know that to be true.
The Wealth Gap Report shows that four out of five Canadians (80%) are supportive of increasing the federal income tax rate on the highest income bracket, while three out of four (75%) support increasing corporate tax rates back to pre-2008 levels to address inequality. This support includes more than 70 per cent of Canadians in the highest income bracket.
The survey found support for progressive policies to reduce the wealth gap cut across traditional political party affiliations.
- 83 per cent believe political parties should pledge not to introduce any tax cuts that would increase the gap between the rich and the rest of us
- 75 per cent said corporate tax cuts should be rolled back .
- 80 per cent agreed that the highest income tax bracket should be raised.
- 62% support taxing capital gains and stock options at the same rate as wages to address inequality.
Regular taxpayers seem to be way ahead of many politicians on this issue. A large majority -80 per cent - say the wealth gap has grown in Canada over the past decade, including 76 per cent of Conservative voters.
Canada has seen its federal corporate tax rate cut in half since 2000. This year is the first time in Canadian history in which taxes paid by individuals will make up more than half of all government revenue. An earlier survey showed voter cynicism over the broad reduction in corporate tax rates over the past 15 years, saying that it did not encourage companies to invest the money back in this country. Canadian money in tax havens is at an all-time high and widespread use of profit-shifting by Canadian multi-nationals is testing the patience of voters.