Let’s start with one of the highest-voltage [third rails] in federal politics: Old Age Security.
OAS only begins to be clawed back once a senior’s income exceeds $91,000. And payments aren’t zeroed out until income hits $148,000 – or $154,000 for those 75 and older. Senior couples earning a quarter-million dollars a year, and living mortgage-free, are getting cheques from younger and (much) lower-income taxpayers.
That has to be fixed. The OAS threshold should be lowered – to, say, $60,000 – and the clawback sharpened, with benefits tapping out at $100,000.
…
End the capital-gains exemption for principal residences. It’s even more untouchable than OAS. It’s also more economically harmful and inequitable.
It pumps up housing prices and pushes more and more national wealth into housing. It’s dumb economics, plus the tax break only goes to the two-thirds of families who own a home. And the richer you are, and the more home you own, the bigger the tax break. It adds up to a hyper-regressive policy to make Canada less productive.
…
Let’s restore the two percentage points of Goods and Services Tax the Harper government cut. Our tax system is too tilted to income taxes, and away from taxes on consumption. And the cut to the GST costs Ottawa about $20-billion a year.
If the GST were raised, some of the proceeds could beef up the tax credit for low-income Canadians.
There’s some good stuff in there.
This is the best summary I could come up with:
In the run-up to the 2015 election, the federal Liberals touched an electrified third rail of Canadian politics: they promised to raise taxes.
On Tuesday, Finance Minister Chrystia Freeland touched another high-voltage wire, with a plan to raise the tax rate on capital gains.
Only some capital gains, and only over $250,000 a year, and with small business largely shielded by a $1.25-million lifetime exemption, and with Ottawa saying that only 0.13 per cent of taxpayers will be affected – but still: a politically impossible tax increase is, apparently, possible.
There are lots of other third rails in Canadian politics – long-standing and costly policies that governments will not touch, no matter their illogic or unfairness, for fear of electoral electrocution.
Senior couples earning a quarter-million dollars a year, and living mortgage-free, are getting cheques from younger and (much) lower-income taxpayers.
The Department of Finance projects that this year, the tax exemption of private health and dental plans will cost Ottawa $3.9-billion.
The original article contains 809 words, the summary contains 162 words. Saved 80%. I’m a bot and I’m open source!