NDP Revives Inheritance Tax Plan

[maplesyrup]

NDP revives inheritance tax scheme

The NDP has taken a page out of the 1970s and said it would introduce an inheritance tax to Canada, taking a slice of any parent-to-child wealth transfers that amount to more than $1-million.

This may, at the most, impact on 5% of Canadians.

Excellent idea.

[August1991]

This may, at the most, impact on 5% of Canadians.

Where did you get that number?

Did you notice too that farms and small businesses are exempt? Geez, this policy will really be popular in those urban ridings with baby-boomers - knowing that rural types, for some reason, are exempt.

[maplesyrup]

This is what our Canadian governments are really here for - to protect the least fortunate in society by slightly redistributing the wealth in Canadian society.

The Jack Layton's New Democrats are fiscally responsible, a small c conservative approach.

[Michael Hardner]

Did you notice too that farms and small businesses are exempt? Geez, this policy will really be popular in those urban ridings with baby-boomers - knowing that rural types, for some reason, are exempt.

Small businesses - urban ridings. Politically astute move. Anyone standing to inherit more than one million dollars will complain, surely. But I think the 5% figure is high.

[August1991]

It's not anyone - it's any family. The $1 million threshold is based on the total amount. Given the value of houses in Toronto and Vancouver, many family inheritances are worth more than $1 million.

But why exempt farms and small businesses? A dollar is a dollar is a dollar.

Of course, this policy will never be enacted so we're pissing in the wind. But I think the NDP was unwise to propose it.

[Black Dog]

Not a bad idea in theory, I'm not sure about the proposed execution. But, given they are a tax on unearned income, inheritance taxes are fundamentally a sound idea. I mean, they even have 'em in the U.S.

[Kliege]

This is a stupid move by the NDP, especially if it seeks to appeal in urban areas. In Toronto alone some properties cost over 1 million, because housing prices have gone up so much in the last 20 years. So this mean if you brought a house in downtown Toronto, during the 60's and 70's that would have cost 90-150k and now would be well overn 1 million, those that you leave your home two would have to pay an Inheritance tax.

Always leave it up to the NDP to find new ways to tax.

Good thing the NDP have no chance at government or a real opposition. It will forever be a protest party federally.

Remember Bob Rae?

[August1991]

I'm not sure about the proposed execution.

There's another issue with an inheritance tax. It invites evasion. For large sums, there are many ways to create special funds or offshore thingeys. I think that's what the McCain family did.

This proposal may come back to haunt the NDP. It invites all kinds of questions and confusion. People think the government wants to take something away from them. At the doorstep, people will ask about this.

I mean, they even have 'em in the U.S.

Wow! BlackDog says something good about our American cousins.

[Black Dog]

Always leave it up to the NDP to find new ways to tax.

Hardly new. Canada had an inheritence tax until the Mulroney Cons repealed it in the '80s.

There's another issue with an inheritance tax. It invites evasion. For large sums, there are many ways to create special funds or offshore thingeys. I think that's what the McCain family did.

That's why the NDP also want sto go after offshore tax shelters like the kind Paul Martin's Canadian Steamship lines used to duck taxes here.

Wow! BlackDog says something good about our American cousins.

Hey, even a stopped clock is right twice a day.

However, inheritence taxes are a bete noir of the Republicans, and the U.S inheritence tax is being phased out as part of Bush's last round of tax cuts (I understand this cut has a sunset clause though).

[maplesyrup]

Brilliant strategy to go after the offshore tax loopholes such as the Martin CSL empire.

Jack it up.

[maplesyrup]

As far as the proposed Inheritance Tax is concerned:

US has an inheritance tax

UK has an inheritance tax

Germany has an inheritance tax

The tax only applies to millionaires

Why should Canada be any different?

[Slavik44]

The NDP shoudl stick to proposals like this,

"It proposes to change the income-tax system so no Canadians earning less than $15,000 would pay taxes."

the amount of people that earn 15,000 is low and the money the government gets from income tax on thsoe people is low, but it would make a big enough difference in the persons life to be a bit of a help.

Unfortuanantley no, instead they want to push on a tax for rich people dumb enough to die. next it doesn;t amtter how many benificiaries there is on the inherritiance, making it entirley possible that, numerous middle class families from big citieswoudl just squeek in to this tax, which worries me. Personally if you are goign to tax the rich for dieing atleast make sure they are truely rich and put the tax in place only if 1 single person recieves over 1.2 million. This woudl block out most middle class families that moved into a booming are in housing, it woudl block out again middle class families by ensuring that the parents truley are rich (if you can give 1.2 mill to just 1 person it can be assumed tha tyou are rich). So if you are going to tax the rich for dieing please make sure they are 100% rich, and not just lucky middle class families.

[August1991]

Why should Canada be any different?

Just because everyone else is jumping off a cliff, does that mean I should?

MS, the fact that you put "impacts on perhaps 5% of Canadians" in your thread heading tells me that you are backtracking here.

Make no bones. The NDP wants to increase taxes. It wants to use the money supposedly to provide even more government services to people.

I admire Layton for being upfront about this.

But I'm sure I'm not the only one asking: How much further do we want to go down this road when the government already takes about half from us? And will we even get the services promised?

[August1991]

the amount of people that earn 15,000 is low and the money the government gets from income tax on thsoe people is low, but it would make a big enough difference in the persons life to be a bit of a help.

I suspect that most people earning less than $15,000 are kids living at home working part-time. This is a gift to the middle class. It makes sense though because it will eliminate alot of administrative tax collection work.

But imagine the NDP suggested the same for payroll taxes! I bet unemployment would fall to 5-6%!