Skip to content
aDiamondMortgage
Menu
  • Welcome
  • Mortgage
    • Purchase
    • Refinance
    • Equity
    • Reverse
    • Commercial & Alternative
  • Resource
  • About
    • Terms Of Use
    • Privacy Policy
    • Cookie Policy (CA)
  • Contact
  • Realtors
  • Application
Menu

Three ways Canadian taxpayers might foot the bill for the government’s COVID-19 response

Posted on 2020-11-29
Three ways Canadian taxpayers might foot the bill for the government

Higher taxes meant to cover Canada’s COVID-19 expenses might come in the form of removing the exemption on principal residences, according to wealth and investment analyst Gordon Pape.

In a recent piece for The Toronto Star, Pape said that there is a prevailing belief among tax experts that “it is only a matter of time” before the capital gains exemption for personal residences is lowered or removed altogether.

“The Canada Revenue Agency began collecting data on housing sales a few years ago, in a move many viewed as a prelude to introducing a new tax,” Pape said. “Again, this would fit with the Liberals’ philosophy of reducing wealth inequality in the country, especially if the plan included an exemption for lower-cost residences.”

Such a tax will be one of the measures that the government might consider when the time comes to deal with the debts taken on during the pandemic. Pape cited an analysis from the Canadian Taxpayers Federation which said that the national debt is on track to reach $1 trillion by the end of 2020, and the federal deficit is approaching $400 billion.

Another possible solution to the debt problem would be to raise the inclusion rate for capital gains, Pape said.

“As things stand right now, only 50% of capital gains are taxable (with principal residences still exempt),” Pape said. “This is seen by proponents as a way to encourage more risk-taking by Canadian investors and entrepreneurs. Opponents contend it is a tax break for the rich. Philosophically, the Liberal government falls into the latter group; don’t be surprised to see the inclusion rate for taxable capital gains increase to 75% or even 100% in a future budget.”

A likely effective, although contentious, step would be to raise the goods and services tax.

“Most economists agree that consumption taxes are much fairer than income taxes,” Pape said. “With the Liberals expressing concern over wealth inequality in this country, that suggests the GST would be a good, if unpopular, place to start. … It has been estimated that every percentage point increase in the GST could raise about $7 billion in additional revenue for Ottawa. That has to be very tempting for any cash-strapped government.”
Whatever the final approach would end up being, however, Pape said that it will definitely not happen right away.

“Imposing new taxes on a staggering economy would drive the country into a depression that could last for years,” Pape said. “But a year or two from now, when the pandemic is under control and the economy is in recovery mode, watch out. Someone has to pay the bill, and it’s going to be us.”

  • https://www.mortgagebrokernews.ca/news/three-ways-canadian-taxpayers-might-foot-the-bill-for-the-governments-covid19-response-333971.aspx?utm_source=GA&utm_medium=20201011&utm_campaign=MBNW-Weekend-20201011&utm_content=CAB225E9-A56E-4453-BA7A-30CBD695B619&tu=CAB225E9-A56E-4453-BA7A-30CBD695B619

Complimentary Hotel Stays Are here!!!

Would you like a complimentary hotel stay? Some locations are:

  • Bali, Indonesia – Hotel Rooms 8 days and 7 nights
  • Bangkok, Thailand – Hotel Rooms 5 days and 4 nights
  • Cabo San Lucas, Mexico – Hotel Rooms 5 days and 4 nights
  • Cancun, Mexico – Hotel Rooms 6 days and 5 nights
  • Dubai, United Arab Emirates – Hotel Rooms 5 days and 4 nights
  • Las Vegas, NV – Hotel Rooms 4 days and 3 nights
  • Phuket, Thailand – Hotel Rooms 8 days and 7 nights
  • Puerto Vallarta, Mexico – Hotel Rooms 6 days and 5 nights

We have teamed up with GiveAwayVaca.com to offer our clients and our realtor clients complimentary hotel stays around the globe. Simply complete your mortgage of any type with us and choose your location.

Please Note:
– Clients/users must pay taxes ~$35.00/night.
– All information may change without notice.

Mortgages-101

Selecting a mortgage is one of the biggest – and most stressful – financial decision made by many Canadians. But a clear understanding of a few basic terms and concepts can help allay some the anxiety. Here’s a primer on the basics of mortgages, along with insights into the current market.

  • more...MORTGAGES-101

Archives

Tags

Affordable Housing Alberta Banks BC Black Homeownership BOC Calgary Canada Canadian home prices CMHC Commercial Condo COVID COVID-19 Credit Credit & Debit Debt Default Deferrals Economist Economy Equifax Government Homebuying Homeownership House Housing Canada Inclusive Interest Rates Investment Mortgage Mortgage Tips OSFI Pre-Approval Price Private. Alternative Purchase Purchase & Down Payment Real Estate Refinance Revenue Taxpayers Toronto Underwriters Vancouver

Archives

  • October 2023
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020

Sections

  • Mortgage
  • Economy
  • Banks
  • BOC
  • Government
  • Underwriters
  • Commercial
  • Revenue
  • Investment
  • Purchase & Down Payment
  • Credit & Debt
  • Real Estate
  • Inclusive
  • Mortgage Tips
  • All News Topics
  • To Top

Tools

  • Terms of Use
  • Privacy Policy
  • Cookie Policy

About Us

  • Contact Us
  • Feedback

Follow Us

  • Facebook
  • Twitter
  • Instagram
©2023 aDiamondMortgage | Design: Newspaperly WordPress Theme
Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}