Canada's NDP

NDP

September 13th, 2021

What’s Trudeau’s “limit” for what the ultra-rich should pay?

Yesterday, Justin Trudeau suggested we're at the “limits” of what the ultra-rich should pay. He said it would be wrong to “go with unlimited zeal against the successful and wealthy in this country to pay for everything else.

But Canadian billionaires got $78 billion richer during the pandemic. And the PBO says Canada misses out on $25 billion a year due to tax havens and other corporate tax avoidance.

So let’s look at what Justin Trudeau considers over the “limits” of what the ultra-rich should pay:

  1. Returning corporate tax rates to 2010 levels. The PBO says this will raise $5.5 billion a year.
  2. A 1% wealth tax on people with fortunes over $10 million. The PBO says this will raise $11.3 billion a year - even accounting for “behavioral change” from people trying to avoid the tax.
  3. Fighting tax havens by requiring companies to show their international transactions are legitimate. The PBO says this will raise $2.7 billion a year. This estimate also accounts for behavioral affects.

The independent PBO says Canada can raise billions through these simple measures. Meanwhile, Trudeau’s plan doesn’t include a cent for the prescription drug coverage he promised in 2019.

So why does Justin Trudeau think these measures are beyond the limits of what “the successful and wealthy” should pay?