Yesterday entered into force the measures to tax the most regressive in a long time, the implementation of a low single rate of school tax to the province of Quebec.
Part of the great promises of François Legault during the election campaign that brought him to power in October 2018, the entry into force of the single rate represents a decline in annual school tax of $ 744 million dollars across the province.
The tax rate of a school-varied enormously in the 18 regions of Quebec, the range of rates ranging from 0,1054 to 0,30932 per $ 100 of property valuation.
The government caquiste back for all the regions of the taxation school at the lowest rate, that is, 0,1054, it is totally defensible.
But what, at that time, this tax cut is school irritates me-does it ? Because it appears to me to be unfair.
Let me explain.
This decrease favours unduly the rich owners of residences. It is important to know that the school tax is to be levied on the land value of the properties. The higher the value of the property, the higher the school tax is high.
In turn, by reducing the rate of the school tax, it’s the rich owners who benefit most.
Let’s make one thing clear. When people decide to pay and live in a property of great value, they are aware that the invoice of the school tax will be high, as is that of municipal taxes, heating, maintenance, etc
Other iniquity blatant : the 40 % of households who are renters do not benefit from the reduction of the school tax. Although the school tax, of course, part of the expenditures used to calculate the cost of the rent, do you think that the owners of rental housing will pass it on to the tenants the reduction of the school tax ?
Now, who is going to absorb the decrease of $ 744 million $ of revenues from school taxes ? It is the government, as François Legault has promised to compensate school boards for the shortfall of $ 744 million $.
Who says government, says of course all taxpayers, tenants included.
I don’t see why the owners who have residences in several millions of dollars should have such a gift for tax purposes.
To compensate for the shortfall of $ 744 million $ that the government will be required to pay to school boards, Québec could introduce in the statement of income a special tax on the luxury property, of the kind 8 cents per $ 100 in valuation on the assessment amount in excess of $ 1 million.
For the owner of a residence of $ 2 million, it will pay a special fee of $ 800, which would add to his tax bill school 2108 $. The rich owner of a domain $ 10 million would pay a special tax of $ 7200, in addition to his school tax of 10 540 $.
The other solution, much more radical than that. In an open letter in La Presse+, Julia Posca, a researcher at the IRIS, and the enterprise architect Haroun Bouazzi propose to abolish the school tax and replace it with a progressive tax on wealth.