Fair tax measures for $92 Billion annually

PDF icon Fair tax measures that could raise $92 billion annually
FAIR TAX MEASURES THAT COULD RAISE OVER $92 BILLION ANNUALLY
A Factsheet from C4TF's Briefing Package for Budget 2022
Original calculations from C4TF's Platform for Tax Fairness 2021
March 2022
 
 
Over $92 billion dollars could be raised through a series of fair tax measures, outlined in C4TF’s recent Platform for Tax Fairness. These measures would require the richest individuals, biggest corporations and major polluters to pay a fairer share of government revenue. Canadians across political lines overwhelmingly support fairer taxes.
 
 

$ Billions available in estimated revenue from fair tax measures :

Revenue
(Billions)
 Fair Tax Measure
22
 Tax capital gains income at 100%, just like employment income
20
 Impose an annual wealth tax on the very richest Canadians
11
 International corporate tax reform to tax multinationals fairly
8
 Increase the general corporate tax rate from 15% to 20%, reversing decades of tax cuts
8
 Impose a pandemic super profits tax
7
 Introduce a financial activities tax at 5% on profits and compensation in the financial sector
3
 Increase investment in enforcement, strengthening the CRA
3
 Strengthen the carbon tax framework by eliminating preferences for large emitters
2.5
 Restrict the deductibility of interest by large internet platforms
2
 Impose an inheritance tax on high-wealth estates
1
 Reduce the corporate dividend tax credit
1
 Increase the top federal tax rate on personal incomes over $750,000 from 33% to 37%
1
 End the tax deductibility of advertising on foreign internet platforms
1
 Impose a minimum tax on corporate book profits
0.5
 Eliminate the stock option deduction
0.5
 Cap lifetime TFSA contributions at $75,000
0.5
 Put a $1 million cap on the business deduction for executive pay
0.45
 Impose a meaningful luxury goods tax
0.3
 Eliminate remaining fossil fuel subsidies
0.2
 Eliminate the business entertainment expense deduction
92.95
 $ Total potential revenue (billions)
 
Funds raised through these fair tax measures would be enough to pay for
  • universal pharmacare ($15 billion) [1],
  • ending the First Nations’ water crisis ($7.4 billion) [2],
  • energy retrofitting of our homes ($6 billion),
  • the Canada Child Benefit including Child Disability Benefit ($27 billion) [3],
  • the cost of improving long-term care ($13 billion) [4],
  • and more…
 
 
SOURCES
[2] Clean Water for First Nations: Is the Government Spending Enough?, Parliamentary Budget Office of Canada, 1 December 2021
[3] Details of Economic and Fiscal Projections, Budget 2021, Government of Canada, 19 April 2021
[4] Cost Estimate for Motion 77: Improvements to Long-Term Care, Parliamentary Budget Office of Canada, 4 August 2021

 
 
{Photo by Clay Banks on Unsplash}
 
 
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