National Post (National Edition)
Hands off our homes, taxman!
Re: Yes, we should tax capital gains on principal residences, Allan Lanthier, April 7
I believe Allan Lanthier is completely wrongheaded in his advocacy for a capital gains tax on principal residences. Mr. Lanthier suggests using RRSPs and TFSAs as a preferred vehicle for retirement savings. He neglects to mention that the greatest storehouse of value for most Canadians is their principal residence. While being employed in the financial services industry, I observed that Canadians would almost sell off their first born rather than miss a payment on their mortgage. They did not have the same discipline with regard to their RRSPs and TFSAs, rather treating them as savings accounts and making withdrawals for auto purchases, etc., with the result that not a lot of wealth resided therein.
Also, for a lot of retirees a long-term plan involves selling off their principal residence and purchasing a less expensive condo, with the residue providing for the future. Paying a capital gain on principal residences would severely impact
What I find most appalling in this article is the blithe presumption that “it is time the government took a hard look ...” at extracting yet more from taxpayers. We pay land transfer tax (a relatively new extraction to plague those trying to get their first home), we pay property taxes, which have risen inexorably and mostly in excess of inflation, and we pay HST on the multiple costs of buying and selling. But this is not enough it seems. When it comes to the question of who can use the money most wisely, the government and its former adviser, Mr. Lanthier, seem to believe that they need it most and can use it best.
No, we should not tax lifetime savings. Not taxing something is not “largesse.” We should not have the government trying to extract every possible dollar from beleaguered Canadians. Rather, may I suggest that you advise the government to attempt to control their reckless spending.