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.
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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.
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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.
Some good points, putting a cap on the primary residence excemption seems more in spirit with the idea of wealth redistribution than simply removing it all together. We could also consider something like letting people claim their capital gains over multiple years which would lower the tax paid on those of lower income while it wouldn’t change anything for those that are consistently earning in the highest tax bracket.
Green space is tough because there’s definite benefits to urban green space. Like moderating urban temperatures, minimizing run-off of precipitation and its effect on the storm sewer system, providing habitat for native species(even if the green space isn’t completely native). Though that green space is probably more efficient if it’s managed by the municipality around denser housing rather than each individual homeowner.
I’m not so sure about the difference between adding units within existing square footage vs adding square footage. I think part of the problem is availability of reasonable quality housing within the budget of minimum wage earners. Having, smaller units available seems more cost effective in this context than larger ones. I think it’s particularly good for more people to be able to afford a smaller unit on their own rather than a splitting of a larger unit between roommates.