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
[1] Advisory council calls for $15B universal, single-payer pharmacare plan, Kathlee Harris, CBC News, 12 June 2019
[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}
