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Liberal plan to tax wealth and inheritances barely makes dent in deficit

Erskine-Smith wants a 3% tax on assets over $10 million, a 5% tax on assets over $20 million, and an inheritance tax on estates worth more than $5 million.

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A Liberal MP says an equity tax on the rich and inheritances are needed to pay off the pandemic bills.

But Blacklock’s Reporter said Thursday the Parliamentary Budget Office predicted that would cover less than a tenth of ongoing deficits.

Deficits from the onset of COVID-19 to 2026 are $686.1 billion, by official estimate.

“I think we have to tackle wealth inequality,” Liberal MP Nathaniel Erskine-Smith (Beaches-East York, Ont.) earlier told the Commons.

“Of course I would like to see a social safety net akin to a basic income that leaves nobody behind.

“The math does not work directly, so the money generated from an excess profits tax and a wealth tax would not even address the first issue of a minimum income let alone the other noble objectives.

Erskine-Smith requested the PBO figures and sponsored Motion 68 pending in the Commons that asks the cabinet to “address rising extreme wealth inequality and generational fairness concerns by implementing a one-time tax on extreme wealth to help pay for the pandemic response.”

Erskine-Smith wants a 3% tax on assets over $10 million, a 5% tax on assets over $20 million, and an inheritance tax on estates worth more than $5 million.

All three measures combined would raise $60.7 billion over five years, said the PBO, the equivalent of 8.8% of ongoing deficits over the period.

Analysts noted “uncertainty with respect to revenues raised by the tax” due to “behavioural responses” by millionaires. Parliament abolished the federal inheritance tax in 1972.

The Commons last November 16 by a 292-27 vote rejected a similar New Democrat motion to impose a 1% equity tax on assets over $20 million, and an excess profits tax on corporations.

“It is easy and wonderful to say to people we are going to tax the wealthiest and we are going to do this, do that, and take all that money and give it to the poor,” said Liberal MP Kevin Lamoureux (Winnipeg North), parliamentary secretary to the Government House Leader.

“At the end of the day, we need to spend time focusing on Canada’s middle class.”

Conservative MPs opposed the motion in Commons debate and warned of higher costs of borrowing.

“In the future, in three, four or five years when interest rates get back to normal, the biggest spending increases will go toward paying the interest on the debt the government is racking up,” said MP Pierre Poilievre (Carleton, Ont.).

“The biggest threat to our health is this government’s out-of-control spending and debt,” said Poilievre, who predicted taxpayers “will wind up paying more for the interest on our debt than we spend on health transfers.”

 The Canadian Taxpayers Federation is calling on the government to rein in spending again.

“Politicians’ eat-the-rich mentality is just silly political posturing,” said Franco Terrazzano, Federal Director for the CTF.

“The PBO data shows that the Trudeau government’s deficit spending would burn through the extra cash in about a month, so if the feds don’t start saving money, it will be everyday Canadians that get clobbered by the debt tab.”

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
Twitter.com/nobby769

Dave Naylor is the News Editor of the Western Standard and the Vice-President: News Division of Western Standard New Media Corp. He has served as the City Editor of the Calgary Sun and has covered Alberta news for nearly 40 years. dnaylor@westernstandardonline.com

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3 Comments

3 Comments

  1. CodexCoder

    July 17, 2021 at 9:02 am

    If the federal government, under the control of people like Natty Erskine-Smith, had listened to the EMO organizations across the country, and had implemented the plan that they had spent years developing, instead of borrowing and printing money like the vapid, mindless losers that they are, the deficit would not have ballooned, and this asset and estate taxation would not be necessary.

    IF…

    A fool and his money are soon parted.

  2. Baron Not Baron

    July 16, 2021 at 9:31 pm

    No to that. Have them politicians and their enablers pay for the destruction they created and profited from.
    We, the people, want (this illegal) tax elimination. For good.

  3. Steven

    July 16, 2021 at 1:09 pm

    Commie Justin Trudeau in five years of platitudes & spending taxpayers money like a drunken sailor has amassed a Trillion Dollar taxpayer debt in 2021.

    I say: All Family Foundations, in Canada, especially the Trudeau Foundation be assessed a tax of 50% to help pay back the debt platitude Justin has given Canadians. With all that spending by Trudeau are we as “long term Canadians” any better off? Nope!

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News

Judge says military accounting a major mess

Defence lawyers in the case argued army accounting was so incompetent all evidence of theft was circumstantial.

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A judge in Nova Scotia says he has no doubt Canadian Armed Forces money was swiped, but military bookkeeping is so terrible he can’t say how much.

Blacklock’s Reporter said the money was discovered to be stolen from Sydney, N.S. Garrison after an internal audit faulted the Department of National Defence for mismanagement of money-losing golf and curling clubs.

In convicting a former manager of theft, Nova Scotia Provincial Court Judge Peter Ross said he was “convinced beyond a reasonable doubt” that tens of thousands of dollars were stolen from the Sydney Garrison, but had to estimate the loss at $28,000 due to “lax accounting practices” and “sloppy recordkeeping.”

Defence lawyers in the case argued army accounting was so incompetent all evidence of theft was circumstantial.

“There are too many holes in the bucket,” the Court was told.

David Mullins, a former Department of Public Works manager, was found guilty of theft. Mullins worked as manager of the Sydney Garrison Messes for two years handling food and liquor sales, hall rentals, petty cash, bank deposits and inventory.

Court was told bookkeepers in Halifax became alarmed when the Garrison started “going into the red” and reporting bank deposits for $4,700 “deemed suspicious because it was such a round number.”

Forensic accountants found the Garrison “did not have working cash registers” and discovered $2,800 in banknotes in a filing cabinet.

“If bottles are missing, cost is what matters,” testified Roberta Sullivan, a forensic accountant with the Department of Public Works.

“If cash is missing, retail value is what matters.”

The Garrison Messes were managed by the Canadian Forces Morale and Welfare Services branch, the same division responsible for operations of 39 military-owned sports clubs nationwide.

An earlier Non-Public Property Audit Of Special Interest Activities found the clubs lost $2.7 million annually.

The review found military clubs sold memberships to the general public in direct competition with the private sector.

“Policy dictates the combined non-military membership at a special interest activity shall not exceed 50% of the total membership,” said the report.

“Several special interest activities have requested exceptions to this, citing financial sustainability.”

“Policies require special interest activities to operate as businesses with the goal of being financially sustainable.”

“Sustainability” was widely interpreted, the report added, with unnamed club managers found to “interpret a net loss as acceptable” as long as it was subsidized by the Department of National Defence.

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
Twitter.com/nobby7694

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Civil service mag promotes immunization passports

Any mandatory scheme would see Canadians required to carry proof of vaccination to eat at a restaurant, visit a shopping mall or go to a baseball game, said the magazine.

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A magazine for Canadian public service managers says the country must introduce vaccine passports, says Blacklock’s Reporter.

“The immunity of the population is detrimental for the safe reopening of the economy and various jurisdictions across the world are exploring the idea of immunity certificates as an enabler,” said a commentary in Canadian Government Executive, a periodical published for federal public service managers.

“After a rigorous analysis of the issue of immunity certificates, this article concludes the necessity of immunity certificates in Canada as a key enabler for the safe reopening of the society and economy in a post-Covid world.”

Any mandatory scheme would see Canadians required to carry proof of vaccination to eat at a restaurant, visit a shopping mall or go to a baseball game, said the magazine.

“They can also be used to promote economic activities such as workplace safety, tourism etcetera,” said the periodical.

The magazine acknowledged Canadians were divided on the issue and numerous foreign jurisdictions have banned vaccine passports.

“It is important to note in the United States several states such as Florida, Texas, Arizona etcetera have either banned or prevented the mandatory use,” said the commentary.

Privacy Commissioner Daniel Therrien in a May 19 statement said vaccine passports breached the Privacy Act since they compelled users and non-users alike to disclose personal health information to access public facilities.

“There must be clear legal authority for introducing use of vaccine passports,” said Therrien, adding Parliament would require “a newly enacted public health order or law” before any mandatory scheme could be introduced.

Prime Minister Justin Trudeau in a January 14 podcast called it a divisive issue.

“I think the indications that the vast majority of Canadians are looking to get vaccinated will get us to a good place without having to take more extreme measures that could have real divisive impacts on community and country,” said Trudeau.

“I think it’s an interesting idea but I think it is also fraught with challenges. We are certainly encouraging and motivating people to get vaccinated as quickly as possible. We always know there are people who won’t get vaccinated, and not necessarily through a personal or political choice.

“There are medical reasons. There are a broad range of reasons why someone might not get vaccinated. I’m worried about creating undesirable effects in our community.”

Federal research shows about 12% of Canadians would refuse a COVID-19 vaccine under any circumstances. A total of 26% said they did not trust the Public Health Agency, according to the Statistics Canada report.

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
Twitter.com/nobby7694

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Canada Post to make bank on lending operations

The union said loans would be issued in a test project at post offices in Halifax and Bridgewater, N.S. and surrounding rural areas, as well as Calgary and Red Deer by year’s end.

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“A roll of stamps and $30,000 please.”

That will soon be possible as, for the first time in 53 years, Albertans will be able to go to the post office for a loan.

Blacklock’s Reporter said Canada Post on Thursday confirmed outlets in Alberta and Nova Scotia will broker cash loans for the Toronto Dominion Bank.

“The market test goal is to offer the new financial service in over 249 Canada Post locations before the end of 2021,” the Canadian Union of Postal Workers said in a statement.

Post offices would offer Toronto Dominion loans of $1,000 to $30,000 at “competitive rates.”

Post offices currently sell money orders, gift cards and process electronic cash transfers but disbanded deposit-taking postal banks in 1968.

The union said loans would be issued in a test project at post offices in Halifax and Bridgewater, N.S. and surrounding rural areas, as well as Calgary and Red Deer by year’s end.

“CUPW continues to support the creation of an independent postal bank despite our current partnership with Toronto Dominion Bank,” said the union.

“Partnering with a financial institution does not put an end to the goal of an independent postal bank.”

Parliament in an 1867 Postal Act allowed post offices to hold cash deposits and offer cheque-cashing services. Postal banks at their peak in 1908 held the equivalent of a billion dollars on deposit.

A 2016 Department of Public Works survey found 39% of small business owners nationwide, and 44% on the Prairies, said they would use Canada Post banking services if offered.

The department paid $142,137 for the study by Ekos Research Associates Inc.

“I think Canada Post is very open to increased financial services, not necessarily ‘postal banking’,” Brenda McAuley, national president of the Canadian Postmasters and Assistants Association, said in an earlier interview.

“I think the word ‘banking’ scares a lot of people. The banks don’t think it is necessary.

“There are islands in British Columbia where people have to take a ferry to get to a bank. We will look at pilot projects. I’ve got quite a few places on my radar.”

Canada Post in its 2020 Annual Report said it was “reinventing our retail model” at 6,084 post offices nationwide, including “assessing new financial services and options” mainly in rural Canada.

“Our vast retail network of post offices and dealer outlets across the country provides convenient locations and services with many of them offering evening and weekend hours to meet the changing needs of Canadians,” wrote management.

Jessica McDonald, then-chair of the Canada Post board, in 2018 testimony at the Commons government operations committee said the Crown corporation was “very open-minded” on resuming postal bank services.

“Postal banking has been under a tremendous amount of discussion and continues to be,” said McDonald.

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
Twitter.com/nobby7694

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