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Mar 23, 2022 · Meanwhile, the NDP, in their 2021 platform, proposed a wealth tax of 1% on wealth over $10 million which would result in approximately $60 billion in revenue over the next five years. C4TF’s proposal for a wealth tax would be even more progressive, at 1% for wealth over $10 million, 2% for over $100 million and 3% for wealth over a billion, which would generate close to $20 billion annually.
- John Anderson
John Anderson was the Murran Dobbin Communications and...
- Factsheet
Figures from the Parliamentary Budget Office (PBO) show that...
- John Anderson
Aug 26, 2021 · Figures from the Parliamentary Budget Office (PBO) show that a modestly progressive wealth tax, at 1% for wealth over $10 million, 2% for over $100 million and 3% for wealth over a billion would generate close to $20 billion annually. Reintroduce an inheritance tax: Canada is the only G7 country without a federal inheritance or estate tax. The ...
Aug 16, 2021 · This demonstrates why we need an annual wealth tax in addition to income taxes. Figures from the Parliamentary Budget Office (PBO) show that a modestly progressive wealth tax, at 1% for wealth over $10 million, 2% for wealth over $100 million and 3% for wealth over a billion would generate close to $20 billion annually. $20 billion
- Pandemic Relief
- Supporting Working Parents
- Protecting and Supporting Seniors
- Supporting Canadian Workers
- Supporting Students
- Personal Tax Changes
- Business Tax Changes
- Other Measures
Canada Recovery Hiring Program
The budget proposes to introduce the new Canada Recovery Hiring Program which will run from June to November 2021 making it easier for businesses to hire back laid-off workers or to bring on new ones and allowing businesses to shift from the CEWS to this new support. The hiring subsidy will provide eligible employers with a subsidy of up to 50 percent on the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021. Eligible employers would be permitted to...
CEWS
In response to the COVID-19 pandemic, the government introduced the CEWS to provide eligible employers that have experienced a decline in revenues with a base subsidy for eligible remuneration paid to their employees. In addition, the wage subsidy provides a top-up subsidy to employers that have experienced a decline in revenues of at least 50 percent. The maximum combined base and top-up subsidy rate is 75 percent, on up to $1,129 of remuneration per week for each employee, through the quali...
CERS
The government previously introduced the CERS to provide qualifying organizations that have experienced a decline in revenue due to the COVID-19 pandemic with direct and easy access to rent support. The CERS provides qualifying organizations with a subsidy on qualifying expenses. The maximum base rent subsidy rate is set at 65 percent of eligible expenses until June 5, 2021. The budget proposes the base rent subsidy rate structures for June 6, 2021 to September 25, 2021. The budget proposes t...
Establishing a Canada-wide early learning and child care system
The government proposes to build alongside provincial, territorial and Indigenous partners a Canada-wide, community-based system of quality child care. The government is aiming to: 1. Reduce average fees by 50 percent for regulated early learning and child care in all provinces outside Quebec, before or by the end of 2022; 2. Bring fees down to an average of $10 a day by 2025-26 for all regulated child care spaces in Canada; 3. Create ongoing annual growth of affordable child care spaces acro...
Old age security (OAS) for pensioners age 75 or older
For OAS pensioners who will be age 75 or older as of June 2022, the budget proposes to provide a one-time payment of $500 in August 2021. The budget also proposes an increase to regular OAS benefits by 10 percent on an ongoing basis for pensioners age 75 or older starting in July 2022. Therefore, if you are currently entitled to the maximum OAS benefit, your benefits will increase by an estimate of $766 in the first year. This amount will rise over the years, as OAS benefits are indexed to in...
Protecting seniors
In order to protect and support seniors throughout the pandemic and for years to come, the government proposes to strengthen long-term care and supportive care as well as provide support for seniors to stay in their homes for longer. In order to do this, the budget proposes to provide: 1. $3 billion over five years, starting in 2022-23, to Health Canada to support provinces and territories ensure that standards for long-term care are applied so that seniors can live in safe and dignified cond...
Canada Workers Benefit
The budget includes certain measures designed to improve working wages and address income inequality. The CWB is a refundable tax credit that is designed to help working individuals and families earning a low income, by providing them with tax refund – up to almost $1,400 for single individuals without children and $2,400 for families. The CWB is an income-tested benefit. The budget proposes to make enhancements to the CWB starting in 2021, including raising the income level at which the bene...
Enhancing employment insurance (EI) sickness benefits
There is currently 15 weeks of sickness benefits available under EI. The budget proposes to enhance sickness benefits from 15 weeks to 26 weeks, effective summer 2022. There will also be legislative changes made to ensure job protection for those who are receiving EI sickness benefits that work in federally regulated industries.
Waiving interest on student loans for an additional year
To ensure that the cost of post-secondary education in Canada remains predictable and affordable for everyone during the economic recovery, the government proposes to extend the waiver of interest accrual on Canada Student Loans and Canada Apprentice Loans until March 31, 2023.
Enhancing repayment assistance
The government provides repayment assistance to borrowers with low incomes. Currently, the threshold for this support is earning $25,000 per year or less, for a single borrower. To ensure that no federal student loan borrower ever has to make a payment they cannot afford, the budget proposes to increase the threshold for repayment assistance to $40,000 for borrowers living alone, so that nobody earning $40,000 per year or less will need to make any payments on their student loans. To ensure t...
Doubling the Canada Student Grants for two additional years
To ensure students from low-income households remain supported throughout COVID-19 and continue to have access to this opportunity as the economy recovers, the government is announcing its intention to extend the doubling of the Canada Student Grants until the end of July 2023.
Improving access to the disability tax credit
To help more families and people with disabilities access the DTC and other related support measures like the registered disability savings plan and the child disability benefit, the budget proposes to update the list of mental functions of everyday life that is used for assessment for the DTC. This will allow for easier assessments, improved access to benefits and reduce delays. The budget also proposes to recognize more activities in determining time spent on life-sustaining therapy and to...
Northern Residents Deduction
Currently, the Northern Residents Deduction only provides tax relief to those who already receive travel benefits through work. The budget proposes to expand the travel component of the Northern Residents Deduction to northerners without employer-provided travel benefits. You would be allowed to claim up to $1,200 in eligible travel expenses. This measure would take effect starting with the 2021 tax year.
Postdoctoral fellowship income
An amount awarded to a postdoctoral fellow for postdoctoral work generally does not qualify for the scholarship exemption and is taxable similar to employment income. However, this fellowship income does not create registered retirement savings plan (RRSP) contribution room. The budget proposes to include postdoctoral fellowship income received in 2021 and subsequent taxation years in “earned income” for purposes of determining your RRSP contribution limit. In addition, you will be able to re...
Digital services tax
The government is committed to ensuring that corporations in all sectors, including digital corporations, pay their fair share of tax on the money they earn by doing business in Canada. In the 2020 Fall Economic Statement, the government announced that it would be moving ahead to implement a tax on corporations providing digital services. Although the government has a strong preference for a multilateral approach to this issue, the budget proposes to implement a DST at a rate of 3 percent on...
Immediate expensing
The capital cost allowance (CCA) system determines the deductions that a business may claim each year for income tax purposes in respect of the capital cost of its depreciable property. The budget proposes to provide temporary immediate expensing in respect of certain property acquired by a CCPC. “Eligible property” that is entitled to this immediate expensing must be acquired by a CCPC on or after April 19, 2021 and become available for use before January 1, 2024. The immediate expensing wou...
Interest deductibility limits
Many companies borrow in order to fund their operations. Generally, the interest charges on those borrowings are considered a cost of doing business and, therefore, are deductible from income for tax purposes. Excessive interest deductions claimed by some companies, typically multinationals such as large oil and gas companies can reduce or erode the Canadian tax base. Therefore, the budget proposes to limit the amount of interest that certain businesses can deduct to 40 percent of their earni...
Luxury tax
Starting on January 1, 2022, the budget proposes a tax on the purchase of new personal-use luxury cars, aircraft and boats. The tax will apply to luxury cars and personal aircrafts with a retail price over $100,000 and to boats with a price over $250,000. For vehicles and aircraft priced over $100,000, the amount of the tax would be the lesser of 10 percent of the full value of the vehicle or the aircraft, or 20 percent of the value above $100,000. For boats priced over $250,000, the amount o...
Tax on unproductive use of Canadian housing by foreign non-resident owners
The government intends to implement a national, annual 1 percent tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused, effective January 1, 2022. There may be an exemption of the tax where the property is leased to one or more qualified tenants for a minimum period in a calendar year. All owners who are not Canadian citizens or permanent residents of Canada will need to file a declaration as to the current use of the propert...
Building green homes and communities
Where Canadians seek to replace items in their home to make it more energy efficient or improve insulation, these retrofits will help reduce emissions. To support this, the budget proposes to help home owners with retrofits by providing interest-free loans of up to $40,000 through the Canada Mortgage and Housing Corporation. Loans will be made to eligible homeowners and landlords who make improvements laid out through an authorized EnerGuide energy assessment.
Personal income tax rates: unchanged (p. 13) Corporate income tax rates: general and M&P rate unchanged; small business . CCPC rate decreased from 4% to 2% on January 1, 2021 (p. 27) Nova Scotia . Personal and corporate income tax rates: unchanged (pp. 14, 28) Nunavut. Personal and corporate income tax rates: unchanged (pp. 14, 28) Ontario
Dec 8, 2021 · NB reduced the lowest tax rate to 9.4% from 9.68% for 2021. ON allowed a one-time 20% bump to The Ontario CARE tax credit for 2021. There is also a new temporary Ontario Jobs Training tax credit for 2021. MB provided more support for teachers purchasing supplies is provided with a non-refundable tax credit effective for 2022.
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Feb 17, 2021 · A wealth tax on the very rich is an important practical and symbolic step forward in our response to COVID-19 in Canada. If considered as a part of a broader set of programs and policies aimed at resource redistribution – such as broader tax reform to increase fairness, universal social programs, and policies that target safe and equitable work environments – then a wealth tax could ...
