Creating a fairer tax system for all Canadians
To the Editor, I HAVE BECOME INCREASINGLY uncomfortable with the fear mongering in what has been happening with respect to Finance Minister Bill Morneau’s proposed tax reforms. While I say this, I want it to be clear I do not believe the people who use the loopholes are tax cheats and abusers. Those who use the loopholes that are presently legal are typically high-income earners, while those who earn $150,000 or less annually will have minimal impact.
We have income inequality in this country and we as fellow citizens need to address this issue with the help of tax reform. Life cir- cumstances facing children living in poverty and many within our Indigenous native populations are in desperate need of more funding just to have a bare minimum healthy environment in which to live.
From what I understand these tax reforms will impact 80 per cent of the most wealthy making over $2.3 million annually within our country. However, many of these people will continue to benefit from their existing excessive passive investments because they will be grandfathered. This is quite generous, to say the least. Yet the present loophole whereby the most wealthy get unfair advantage in retirement benefits, which has been projected at up to $16 billion annually in taxpayer subsidy, is an example of how a bad tax system contributes to inequality within our country.
The reform also allows small businesses to continue to benefit from the lower small business tax rate, which happens to be a $3.6 billion taxpayer subsidy. In fact, there should be more money available to invest in active business expansion rather than channel money into passive investments like stocks and real estate. Specific to farmers, the $1 million lifetime capital gain exemption which comes into play when the family farm is being transferred will continue, a significant continuing benefit.
Yes, I am saddened to read some wealthy Canadians are ready to opt out of our country to safeguard their wealth in reactions to these reforms. Yet we need to support these tax reforms as a step to minimize the inequalities within our country a place where most of us are proud to say “We are Canadians!”