MEDIA RELEASE: Canadians for Tax Fairness welcomes new tax fairness measures in Throne Speech
For Immediate Release – Sept 23, 2020
OTTAWA – The federal government’s plans to address extreme wealth inequality and make tax filing easier for citizens will help Canadians on the road to a more inclusive recovery.
“Over $50 billion in federal transfers require individuals to file their taxes each year. Many low-income and vulnerable Canadians do not receive the benefits they need because of barriers to filing their taxes. Moving to a free automatic tax filing system will help the most marginalized individuals obtain the supports they need at this critical time and help decrease poverty in Canada,” said Toby Sanger, economist and director of Canadians of Tax Fairness.
Canadians for Tax Fairness was also encouraged by the government’s plans to identify new ways to tax extreme wealth inequality. As we’ve previously recommended, an annual net wealth tax at modest rates of 1% and 2% on fortunes of over $10 million could raise over $10 billion annually.
“We’re pleased to see the government plans to follow through on previous commitments to tax digital giants and limit the stock option deduction but it shouldn’t stop there. Over 90% of this billion-dollar tax break pays out to the top 1%. The government should move to completely eliminate it alongside other unfair and expensive loopholes, such as the lower rate on capital gains,” Sanger said.
While it is long past time to tax foreign digital firms that avoid paying taxes in Canada, the federal government also needs to crack down on Canadian corporations that hoard their assets in tax havens.
“Today’s speech was one of the most ambitious we have heard from this government since it was elected nearly five years ago. Investments in green jobs and accessible childcare will help rebuild a more robust, equitable, and sustainable economy, but we can afford to invest even more by making our tax system fairer. We hope to see that ambition reflected in the fall economic update.” Sanger said.
Canadians for Tax Fairness
Canadians for Tax Fairness is a non-profit organization that advocates for progressive taxes to fund important public services, reduce inequality and strengthen the economy.