We need progressive tax reform to ensure that the burden of the pandemic is fairly shared. A recent Abacus Data poll found that most Canadians agree that the fiscal burden of the crisis should be fairly shared, and that those with the most should pay the most. Indeed, 75% of respondents favoured a tax of 1-2% on large fortunes, (44% strongly support and 31% support) including 69% of even Conservative voters.
Today, only a handful of advanced economies levy an annual tax on wealth. Though inheritance taxes are still quite commonly levied on large fortunes being passed from one generation to another, the tax “burden” in most advanced economies has shifted from taxation of capital and the affluent to taxes on labour and ordinary working families over the past three decades or so.
This paper makes the case for an annual wealth tax to add to our fiscal arsenal and to achieve greater equality.Read more