Owners of luxury cars, boats and planes will pay more for these big-ticket items if the Liberals form the government in October.
The party’s platform, released Sunday, said the Liberals would ask “the wealthiest Canadians to pay a little bit more” if they’re re-elected. This included a promise to introduce a 10% tax on luxury vehicles costing more than $100,000.
The party estimated the new tax would generate $585 million in revenue in the 2020 tax year, a figure that would rise to $621 million by the 2023 tax year.
The luxury tax could be seen as a more targeted version of the wealth tax proposed by the NDP and the Green Party. The New Democrats would implement a 1% wealth tax on “super-rich multi-millionaires with wealth over $20 million,” its platform said, generating “several billion dollars annually.”
The parliamentary budget officer (PBO) estimated the NDP’s wealth tax could add $2.1 billion to government revenues in 2019-20, increasing to $6.8 billion in 2023-24.
The Green Party didn’t include details about a wealth tax in its platform. The party’s costing document used the same revenue numbers as the PBO’s NDP wealth tax costing, only starting a year later, in 2020-21.
The Liberal platform also included a promise to “crack down” on corporate tax loopholes that allow businesses to excessively deduct debt from their earnings to artificially reduce the tax they pay. The platform did not elaborate on how this would be achieved, but the party estimated it would lead to more than $1.7 billion in revenue in the 2020 tax year.
Multinational tech giants would also pay more if the Liberals are re-elected. The party said it would ensure these companies pay corporate tax on revenue generated in Canada — a measure it expects would generate $540 million in revenue next year.
The NDP and Greens also promised to make transnational tech giants pay tax in Canada.
The Liberal platform did promise some relief for small businesses. The party said it would slash the cost of federal incorporation from $200 to $50.
It also said it would eliminate the fees charged for business advisory services by the Business Development Bank of Canada and Export Development Canada, and give $250 to new businesses “looking to expand their online services.”
Doubling the Child Disability Benefit, increasing student grants
The Liberals said they would offer immediate assistance to families with children who have severe disabilities by increasing the Child Disability Benefit (CDB).
The CDB is a tax-free monthly benefit that currently provides up to $2,832 per year. The Liberals, if re-elected, would double the maximum benefit to $5,664 per year.
The party predicted the increase would cost $391 million in the 2020 tax year and rise to $561 million by the 2023 tax year.
The Liberals also promised to increase Canada Student Grants by up to $1,200 per year. Currently, the eligible students can receive up to $3,000 annually depending on their gross family income.