In the midst of these difficult and uncertain economic times, the Liberals are quietly working to significantly raise your taxes.
In 2018, at their policy convention, Liberals proposed a 50% capital gains tax on the sale of residential homes.
The initial idea of the proposal was to penalize people for “flipping” houses in hot markets by imposing a tax on the profits: 50% if a house were sold after just one year of ownership, 25% after two years, 15% after three years, 10% after four years and 5% after five years.
Conservatives warned Canadians about the cost of a secret Liberal home tax during last fall’s campaign. The Liberals denied it, but now we have proof they are indeed considering it.
Media are reporting that the Canadian Mortgage and Housing Corporation (CMHC) – a Crown corporation under the purview of the Minister of Families, Children and Social Development – is spending $250,000 to study a federal home equity tax that would see residences taxed as capital gains.
This is shameful, especially at a time when many Canadians are struggling to make ends meet.
This new tax would negatively affect people who move for a new job, people who buy a home because they need a place to live right away but are hoping to find a larger permanent residence, people who have a sudden change in family status because of marriage, divorce or children. There are many reasons for someone to buy a house and sell it in less than five years and they shouldn’t be punished for it.
Moreover, tax free equity in one’s personal residence is key to their financial security. A capital gains tax of any kind on primary residences would devastate the housing market, hurt the economy and ensure that many Canadians could not afford to retire.
While the Liberal government denies that this is what they’re doing, Justin Trudeau’s record speaks for itself.
We all remember when the Justin Trudeau called small business owners “tax cheats” who use their businesses as “tax shelters”. In this case, the research project’s organizers write that homeowners are “lottery winners”, and that their homes are “tax shelters”. Sound familiar?
These Liberals never met a tax they didn’t like and are willing to do anything to advance their reckless spending agenda.
They spent the cupboards bare before COVID-19 hit. Now, despite the ongoing economic uncertainty, it looks like they are planning to aggressively go after one of the few remaining sources of financial security Canadians have left.
Conservatives will keep fighting for Canadian taxpayers and holding the Trudeau government to account.