Making Taxes Work for Canadians

Many of Canada’s current tax rules were established with the demands of the mid-twentieth century in mind, and are not equipped to respond effectively to today's realities.

It’s long past time to reform the tax system to tackle what I believe are three key priorities: ensuring that our system is fair to all Canadians; cracking down on tax havens, tax evasion and white collar crime; and simplifying the system to deliver optimal efficiency and savings.

My plan proposes to streamline our tax regime for ease of administration and compliance, and to implement fair progressive policies designed to build a prosperous and sustainable economy, tackle economic inequality, and ensure the continued funding of high quality public services.

Some highlights from Making Taxes Work for Canadians, my package of proposals to bring fairness to our country’s tax system:

  • Create a Tax Crimes Division within the Department of Justice Canada: A more robust mechanism is required to deal with those who shirk their duties as taxpayers and exploit our tax system for personal gain. A dedicated new unit within the Justice ministry will have the authority and resources to investigate and prosecute white collar criminals and tax cheats.

  • Introduce a Financial Activities Tax: A new Financial Activities Tax (FAT) will be introduced on the profits of financial institutions and on banking executives’ remuneration packages, which will then be channelled into general government revenues to the benefit of all Canadians.

  • Eliminate the CEO stock option loophole: This relatively simple measure represents yet another broken election promise from Justin Trudeau’s Liberals, who vowed to close the glaring loophole, and instead immediately gave in to lobbying by big business interests. My plan will eliminate this loophole because - putting aside the feelings of CEOs - it’s the right thing to do.

Read on to see the complete set of tax reform proposals:

Making Taxes Work for Canadians

Projected Revenues    (in $ Millions)

Cancel 2nd bracket tax cut (20.5 to 22% over $45,000) and apply to 1st bracket (15% to 14%, under $45 000)

($ 400)

Cap interest payments to offshore subsidiaries

$ 200

Economic substance test for offshore subsidiaries

$ 400

 

Eliminate Corporate Meals & Entertainment Deduction

$ 400

Tax foreign e-commerce corporate profits

$ 600

Eliminate CEO Stock Option Loophole

$ 650

Limit RRSP Contributions to $20,000

$ 950

Eliminate federal fossil fuel subsidies

$ 1,500

Introduce Inheritance Tax (45% on assets over $5M)

$ 2,000

Enforce Tax on Havens Withholding Taxes (1% of funds)

$ 2,000

Introduce Financial Activities Tax (FAT)

$ 5,000

Increase Corporate Income Tax rate from 15% to 19%

$ 6,000

Introduce Wealth Tax (1% of net worth of wealthiest 10%)

$ 12,000

TOTAL

$ 31,300