The combined marginal tax rate in Ontario is 53.5% which is reached at 225k in taxable income. That is more than enough.
Canadians want a wealth tax and are willing to vote for it
- Thread starter Claudia Love
- Start date
I understand the concept. By taxing what are essentially unrealized gains you force people to sell assets in order to pay the tax. This in tur creates dislocations. it also results in inequities because the value of assets does not only go up. Lat week Jeff Bezos wealth declined by $13B. Would he begetting a refund?
The tax system is inequitable for sure. it favors the rich and self-employed and has way too may "loopholes" which in turn created increased disparity and wealth gaps.
The answer to me is an alternative minimum tax, increasing the rate on capital gains and getting rid of carried interests among other things. The US system also has so many deferrals that it is nuts. i have no idea what the number would be but it would result in many billions of dollars of revenue and a more equitable regime.
What is the corporate tax rate?
What is the tax rate on declared capital gains?
Which are the favorite foreign countries that corporations and businesses hide their income from Canadian taxation?
How many tax code exemptions, deferrals, benefits do corporations and executives have compared to the lowly taxpayers?
All in, what was the percentage ratio of total tax revenues collected by Rev Can from corporations vs. individuals in the 50's compared to now?
You are assuming that wealthy people pay that marginal rate. You assumption would be wrong. If you have managed to accumulate wealth you likely are smart enough to retain good accountants and lawyers and are highly unlikely to pay at that marginal rate. People who are on a salary are much more likely to pay those rates and that is the biggest impediment to accumulating capital. hence the disparity and wealth gap grows.
The Top 10% of earners pay 53% of the Taxes in Canada.
The so called loopholes you are referring to seem to be working quite well for the lower 90% cohort
The wealth tax in Denmark is better than that. You are not taxed on un-realized gains. It actually works OK, the main benefit is that it makes tax avoidance much harder.
Canada has an alternative minimum tax. I have hit it several times.
Capital gains tax is an interesting political issue. In North America, it is taxed lower than salaried income, In Canada now at 50%.
In "Socialist Denmark" capital gains are considered "unearned income" and taxed higher than salaried income.
Add to this that lower income people cannot afford accountants and generally do not understand the tax system. Some years ago, I volunteered with CAMH to help the people on welfare get their benefits (HST and Rent subsidy). They have to file a tax return to get these.
Canada Corporate Tax Rate | 1981-2021 Data | 2022-2023 Forecast | Historical | Chart (tradingeconomics.com)
26.5% on net Income, 38.7% on investment income
That does not include royalty payments to govt, payroll taxes, property taxes and export / import duties and likely another have dozen govt bites at the apple ie fees. licenses
The regulatory burden imposed on corporations is difficult to estimate, however the costs are significant
Your marginal rate * 50% of the gain
There use to be a lifetime exemption for stock market gains, but that was whittled down from $1 MM to $500,000 to zero
So they already have pounced on this several times
Sadly capital gains will likely be targeted again because of Justin's irresponsible spending , per-pandemic and during the pandemic
Ask Justin
He pour a extra billion or so annually into efforts to shake more tax revenue from the "offshore" accounts
The extra revenue came no where near the extra money spent on the incremental tax investigations and court costs
You are banging your head against the wall on this issue
Probably far less on a risk adjusted basis
Executives??? All individuals are taxes based on their income. There are no tax exemptions exclusively for executives
Corporate tax deductions are generally based upon the amount of money invested to maintain and grow their business
Ie Money they invest to grow our economy
Tax deductions designed to incentivize economic growth.
You should not be outraged by what you do not understand
And you most certainly should not think you can mess with what you do not understand
A policy mistake wrt corporate capital investment can be devistating
Different
The tax burden has been shifted onto individuals ie the GST replacing the manufactures tax
However we do need to compete globally now
If you are comparing to the 50s the most significant changes is the size of government
Canadian Federal budget as a % of GDP 1950 - Google Search
.
The government does not have a revenue problem it has a spending problem
Best to get government to stop wasting money and show it is able responsible manage the billions it already take in before asking for more
You may consider taking some economics / finance courses to
- Answer your questions
- Educate yourself
- Sooth your unwarranted outrage about who is paying taxes
Instead you will insult me, express even further outage and then run away
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The implementation factors are the main issue. That's why property taxes are one of the only wealth taxes around - relatively easy to implement.
But that is why so many of the new wealth tax proposals are interesting - they seem to be taking real steps to figuring a way around the implementation problem.
Can they solve it? I'm not sure.
I do like that they are taking it seriously, though, instead of just hand-waving rhetoric.
AMT is also something I support.
Correction: Denmark abolished the wealth tax in 1997.
microeconomicinsights.org
Wealth Taxation and Wealth Accumulation: Theory and Evidence from Denmark | Microeconomic Insights
What are the economic effects of taxing household wealth? While an enormous literature estimates the impact of taxes on labor supply and taxable income, much less is known about how taxes affect the supply of capital. The lack of evidence makes it hard to assess the desirability of taxing...
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We pay Income taxes, property taxes and we pay consumption taxes
Wealth taxes will cross a red line
Capital and jobs will fly out of this country if that insanity is introduced
We do not have a tax revenue problem, we have a government spending problem and now thanks to the liberals a government debt problem
"In "Socialist Denmark" capital gains are considered "unearned income" and taxed higher than salaried income"
Lottery winnings are "unearned income", let's tax them at 53%.
Some of you might find this true story funny. We once had a CRA auditor who wanted to tax us on what we should have earned on a deal not what we actually received.
Lottery winnings are "unearned income", let's tax them at 53%.
Some of you might find this true story funny. We once had a CRA auditor who wanted to tax us on what we should have earned on a deal not what we actually received.
Taxes on the wealthy will have the wealthy move or move their wealth out of Canada and it will remain untouched
you guys need to give your head a shake if you want something you need to earn it yourself not expect free handouts from everyone else
if you want to help everyone why aren’t you donating let’s say 95% of your huge salary because in another thread you told us all how you pay more tax then everyone
Enough with the bullshit about inequality get off your ass get an education then get a job and earn things you want or need
Tax all citizens regardless of where their wealth is stored or earned.
There, now they can't flee.
That is pretty much the way it works in both USA, Canada and countries in Europe.
Try to move out of a country and stop paying taxes to that country. It is very difficult. For USA citizens it is impossible, For Canadians it is almost impossible. Even small countries like Denmark make it difficult. It took me 5 years, including a suit at the high court after I immigrated to Canada to stop being taxable in Denmark.
And good luck trying to hide assets in other jurisdictions. Have you heard of Fintrac?
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Sorry i lost my cool guys its just im tired of having to personally defend myself about taxes when the Conservative men are looking to play dirty. For what its worth i just turned 48 and i think my hormones arent balanced perhaps its mental pause haha. now back to discussion. cheers,
It’s actually quite easy in fact former liberal Prime Minister Paul Martin did it with Canada shipping lines they registered their ships in foreign countries to avoid labor laws and taxes
Former Prime Minister’s have done it you can be sure sitting Prime Minister’s are doing it along with all the party elite do you really think they’re going to pass laws that will cost them money? not a chance chance
This is the standard argument people use to argue against any tax. It is simply not borne out by the evidence. There are certainly some people who will leave, however, that is a very small number and your argument would have the rest of the country held hostage to them. The current tax system in Canada, and much more so in the US is skewed toward the rich and self-employed. That is simply and indisputable fact.
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