NDP pledges to raise top marginal tax rate, capital gains inclusion rate
The corporate tax rate would also go to 18%
The NDP will raise the top federal marginal tax rate by two percentage points if given the mandate to form government.
Ahead of a widely anticipated federal election, the NDP released a proto-platform Thursday that targets the “super-rich” and large corporations.
“Tax the ultrarich to invest in people. That’s our plan. And really no other party is willing to say those words,” Singh told reporters in St. John’s, N.L.
Under the NDP, the top marginal tax rate, which applies to income over $216,511 in 2021, would rise to 35% from 33% (the platform, however, said the top rate applies to “those making more than $210,000”).
The capital gains inclusion rate would increase to 75%.
The party also brought back a campaign promise from 2019: the wealth tax. A 1% wealth tax would apply to “super-rich multimillionaires with over $10 million in wealth.” In the NDP’s 2019 platform, the threshold was $20 million.
On the consumption side, the NDP promised a luxury goods tax “on things like yachts and private jets.” Yesterday, the Liberal government launched consultations on the luxury tax promised in that party’s 2019 platform.
The NDP would double the Home Buyer’s Tax Credit to $1,500 while also introducing a 20% foreign buyer’s tax on homes. In the 2021 federal budget, the Liberal government announced it would impose a 1% tax “on the value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused” beginning in 2022. The Liberals also launched a consultation on that proposal earlier this month.
The NDP’s platform also targets corporations, particularly those that did well during the pandemic. An NDP government would impose a temporary 15% “excess profit tax” on “large corporations that took publicly funded Covid-19 wage subsidies and turned around and paid out executive bonuses, executed stock buybacks or paid shareholder dividends.” The platform also includes a $20 minimum wage.
The corporate tax rate, which is 15%, would return to its 2010 level of 18%. The small business tax rate would be unchanged.
The NDP would also close certain corporate tax loopholes and boost funding for the Canada Revenue Agency’s enforcement section dealing with international and corporate taxation.
These revenue-generating initiatives would fund pricey promises such as a guaranteed livable income for seniors and Canadians with disabilities, student debt cancellation, and universal pharmacare and dental care.
The platform noted that the party wants to “build towards a future where all individuals residing in Canada have access to a guaranteed livable basic income.”
Other tax-related promises included income tax averaging for artists and cultural workers, expanding the Volunteer Firefighters Tax Credit, and making the Canada Caregiver Tax Credit refundable.
The party said it will work with the parliamentary budget officer to cost out portions of a more detailed platform, as Thursday’s action plan included no accounting.
“In all cases, we will manage debt and deficits responsibly, borrowing when required to rebuild and defend the services that Canadians and their families rely on, and moving to balance when it is prudent to do so,” the plan states.
Pocketbook pledges included a price cap on cellphone and internet bills and 30-year terms on mortgages insured by the Canada Mortgage and Housing Corporation.
Other promises included 10 days’ paid sick leave for federally regulated workers, rapid reductions to greenhouse gas emissions, abolishing the Senate and implementation of the Truth and Reconciliation Commission’s 94 calls to action.
Original Article Source Credits: Advisor’s Edge https://www.advisor.ca/
Article Written By: Melissa Shin, with files from Canadian Press
Original Article Posted on: Aug 12, 2021