Coherent Identifier About this item: 20.500.12592/hxh65m

A Tax Shift that Benefits the Vast Majority

2018

Premium

Summary

Over many decades of a working career, larger annual tax payments for the medical care of retirees represent thousands of dollars in additional tax bills for the children and grandchildren of the aging population, regardless of where they are located in the income spectrum. [...] The addition of the $2,000 tax credit replaces the design feature in the initial version that would have credited income taxes paid against the speculation tax owed, and thereby eliminates the risk of creating regressive, higher tax rates for lower-income home-owners. [...] Eliminate the employer health tax introduced in the 2018 budget In the run up to the 2017 B. C. election, multiple parties were campaigning for votes with the promise to eliminate the Medical Service Premiums (MSP) that cost up to $900 annually per person (with reductions for low-earners that made the cost closer the $132 for someone earning around $25,000). [...] If the resident chooses to defer the taxes owed until the sale of the home, he will incur interest payments of approximately $111,000 over that period, bringing the total tax bill under the Million Dollar Homes Tax to $1.21 million. [...] Covering the costs of the income tax cut and the BC Child Care Plan would still leave $1 billion in annual revenue from the Million Dollar Homes Tax to contribute to medical care for the aging population.

Tags

health government politics economics economy taxation finance gross domestic product inequality canada debt employment interest investments labour retirement tax wealth tax pension taxes income taxes affordable housing housing affordability economic inequality retirees british columbia affordable housing in canada aging population

Topics