Overtax the ultra-rich, is this a good idea?

Surtaxer les ultra-riches, est-ce une bonne idée?

Is this the time to go searching through the pockets of the ultra-wealthy canadian taxpayers at least $ 5 billion in federal tax per year ?

Faced with a deficit of 343 billion dollars because of the emergency measures put in place to combat the financial crisis in this period of war against the COVID-19, the government of Justin Trudeau will dare to-t-he “force” the wealthy canadian families to pay more tax ?

The question is as pertinent and relevant as a global group of 83 archimillionnaires called, Monday, to more taxing the more wealthy of the planet “immediately” and ” permanently “, in order to contribute to the recovery after the crisis caused by the pandemic COVID-19.

Beautiful coincidence

In Ottawa, the parliamentary budget officer (DPB) does not have awaited the call of the group “the Millionaires for Humanity” to evaluate a proposal for the over-taxation of archiriches Canadians.

So, last week, the DPB Ottawa’s estimated $ 5.6 billion the amount of additional tax that the federal government may perceive by introducing a new tax of 1 % on the portion of the net assets in excess of $ 20 million.

The proposal of this surcharge was made by ndp mp Peter Julian, New Westminster-Burnaby. Originally filed last September, during the federal election campaign, the request for the assessment of this proposal has resurfaced in the wake of the dramatic increase in the federal deficit.

The taxpayers referred to

According to a study by the parliamentary budget officer, estimated 13 800 canadian families would be potentially subject to the surtax on net wealth, which would bring in an additional $ 5.6 billion in federal income tax in 2020-21.

Last fall, the DPB had estimated that the revenue potential of this tax measure could reach $ 9.5 billion by 2028-29.

It was, of course, before the COVID-19 leads to a global recession and a downgrading of the assets held by the wealthy taxpayers.

Another note of caution is needed on the potential revenue from such a surcharge.

“One might expect a strong change in behavior due to avoidance strategies and optimization of heritage employed by the families to high-net-worth “, wishes to clarify the parliamentary budget officer.

Concentration of wealth

According to Statistics Canada, canadian households held in 2019 assets for a net value of 11 700 billion, or five times the annual GDP of the country.

By net value, we mean the amount of money you would have to a family if she been all of his financial assets and non-financial, while discharging all his debts.

In Canada, there are about a hundred families billionaires, whose net assets totalled $ 221 billion.

Then there are a hundred others who possess a heritage ranging from $ 500 million to $ 1 billion, for a total value $112 billion.

There are 500 of which the net assets varies from 250 to 500 million $. Their net worth : 155 $billion.

Among the holders of net equity ranging from 100 to 250 million $, of which there are 2000. They share 297 billion $.

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