Opinion: Ottawa’s plan for a (very limited) increase in the capital gains tax? It’s a start
www.theglobeandmail.com
There are lots of third rails in Canadian politics. Since governments won’t dare to go there, Tony Keller will

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.

https://archive.is/GDzQG

  • @[email protected]
    3•7 months ago

    How would the removal of the primary residence exception disproportionately disadvantage someone who has to move every 2-3 years?

    Would you not just have to include the capital gains or deduct the capital loss on the difference in home value from those 2-3 years alone? Meaning likely a rather small amount. In fact, wouldn’t you be less affected than most seeing as your gain would possibly be in a lower tax bracket given the lower amount and also under the new $250K threshold. Or…am I missing something?

    Not that I think a blanket removal of the principal residence exception is even a good idea, I just don’t follow your argument here.