You buy a property and in 10 years it doubles in value. Should this increase in value be taxed year by year? Of course not, right?
Well that is how the ultra-wealthy gain their wealth, and the income gap grows between rich and poor.
I think we – the average Joes/Janes – all cheered president Biden’s proposal in March to impose a
minimum 20% tax on the income and unrealized capital gains for taxpayers worth more than $100 million. This move would achieve two things: generate a massive amount of tax revenue for the government within the upcoming years for one, and will also eliminate the inefficient sheltering of income for decades or generations by the ultra-rich. Win-win.
What about us? Since we, Canadians, more often than not look South of the border for an example on how to run our country. Ok fine, not all the time, but we are somehow connected at the umbilical cord that has never been really cut… But that is a political dissection we won’t get into just now.
Let’s focus on taxes. Who would benefit from taxing unrealized gains in Canada? Certainly not those being taxed, but then everyone else.
At the moment there are no immediate tax implications associated with unrealized gains and losses.
As the tax gap widens and the income gap widens the call for tax reform cannot be avoided.
Let’s lead the world with comprehensive tax/fiscal/crypto reform to be a global model.
A system that is fair and equitable for all.
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Written by: Christa Lazar