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Do wealthy Canadians pay enough taxes? That depends how we define 'fair share' – CBC.ca

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When the federal government announced an increase in capital gains taxes in its recent budget, the hike was defended, in part, as a way to ensure the wealthiest Canadians pay their fair share.

But how exactly do we determine what a “fair share” is? Especially, as some data suggests, the wealthiest are already paying a larger share of the overall income tax burden.

“That word fair is completely subjective,” said Trevor Tombe, a professor of economics at the University of Calgary. “What’s needed in any kind of statement around what is or isn’t fair is clarity around what the person means when they say that word.”

Jake Fuss, director of fiscal studies at the Fraser Institute, echoed that a lot of these discussions are not informed by definitions, which is why the institute releases an annual report about Canada’s tax system that has found high-income Canadians are paying disproportionately more in taxes.

WATCH | The federal budget hikes capital gains inclusion rate: 

Federal budget adds billions in spending, hikes capital gains tax

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Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.

Fair share definition ‘vague’

“It’s kind of very vague in terms of what governments and policymakers actually mean by a fair share,” said Fuss.

In the 2024 budget, the federal government lays out its case for what it believes is not fair, particularly when it comes to taxes on capital gains.

“While all Canadians can benefit from the capital gains tax advantage, the wealthy, who tend to earn relatively more income from capital gains, disproportionately benefit compared to the middle class,” the budget said.

That’s why, in the interest of fairness, the government said it would increase the inclusion rate of the capital gains tax from one-half to two thirds on capital gains above $250,000 per year for individuals, and on all capital gains realized by corporations and trusts.

This, according to the government, would affect 0.13 per cent of Canadians with an average income of $1.4 million. 

WATCH | Confused about the capital gains tax changes? We break it down: 

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The federal government unveiled billions in spending in its 2024 budget, and to help pay for it all, it’s proposing changes to how capital gains are taxed. CBC’s Nisha Patel breaks down how it works and who will be affected.

While those tax changes may impact the very wealthiest, Fuss suggested that what is often overlooked is how much high income earners are actually paying in taxes.

The Fraser Institute’s 2023 report suggests that the top income-earning families — those making just under $250,000 — pay the majority of Canada’s taxes.

It found that the top 20 per cent of income earning families pay 61.9 per cent (that’s nearly two thirds) of all the country’s personal income taxes, while accounting for just under half of its total income.

 As well, the study found that those top income earning families pay 53.1 per cent of total taxes.

Similar data was also compiled by Statistics Canada on those who pay higher income taxes. For example, in 2021, the top one per cent income group paid 22.5 per cent of all income taxes, but accounted for 10.4 per cent share of the country’s total income. The top 10 per cent income group paid 54.4 per cent of all income tax, but had a share of the country’s total income of 34.4 per cent.

Still, Allison Christians, the H. Heward Stikeman Chair in the Law of Taxation at McGill University, said some of those numbers are skewed because some top earners can shelter their income through creative tax planning.

According to Christians, the top earners also pay a much lower percentage of their income in consumption taxes than other earners.

“The question is not what percentage of income taxes is someone paying, but what is their relative contribution to the finances of Canada as a whole,” she said.

WATCH | Could the capital gains tax changes impact small businesses?: 

How could capital gains tax increases impact Canadian small businesses? | Power & Politics

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Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.

Income inequality a factor

Clement Nocos, director of policy and engagement at the Broadbent Institute, says the Fraser Institute figures, along with the Statistics Canada data, ignores the totality of actual income inequality.

Nocos referred to a recent Statistics Canada report showing that the wealthiest 20 per cent of Canadians account for more than two-thirds of the total net wealth.

As well, according to the data, the bottom 40 per cent of net income earners make up just under three per cent of total wealth.

“You look at wealth as a whole of what people have and what contributes to inequality. That’s sort of what’s missing in these arguments,” he said. “Inequality when it comes to wealth is actually massive and growing.”

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Two youths arrested after emergency alert issued in New Brunswick

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MONCTON, N.B. – New Brunswick RCMP say two youths have been arrested after an emergency alert was issued Monday evening about someone carrying a gun in the province’s southeast.

Caledonia Region Mounties say they were first called out to Main Street in the community of Salisbury around 7 p.m. on reports of a shooting.

A 48-year-old man was found at the scene suffering from gunshot wounds and he was rushed to hospital with non-life-threatening injuries.

Police say in the interest of public safety, they issued an Alert Ready message at 8:15 p.m. for someone driving a silver Ford F-150 pickup truck and reportedly carrying a firearm with dangerous intent in the Salisbury and Moncton area.

Two youths were arrested without incident later in the evening in Salisbury, and the alert was cancelled just after midnight Tuesday.

Police are still looking for the silver pickup truck, covered in mud, with possible Nova Scotia licence plate HDC 958. They now confirm the truck was stolen from Central Blissville.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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NDP declares victory in federal Winnipeg byelection, Conservatives concede

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The New Democrats have declared a federal byelection victory in their Winnipeg stronghold riding of Elmwood—Transcona.

The NDP candidate Leila Dance told supporters in a tearful speech that even though the final results weren’t in, she expected she would see them in Ottawa.

With several polls still to be counted, Conservative candidate Colin Reynolds conceded defeat and told his volunteers that they should be proud of what the Conservatives accomplished in the campaign.

Political watchers had a keen eye on the results to see if the Tories could sway traditionally NDP voters on issues related to labour and affordability.

Meanwhile in the byelection race in the Montreal riding of LaSalle—Émard—Verdun the NDP, Liberals and Bloc Québécois remained locked in an extremely tight three-way race as the results trickled in slowly.

The Liberal stronghold riding had a record 91 names on the ballot, and the results aren’t expected until the early hours of the morning.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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World Junior Girls Golf Championship coming to Toronto-area golf course

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MISSISSAUGA, Ont. – Golf Canada has set an impressive stretch goal of having 30 professional golfers at the highest levels of the sport by 2032.

The World Junior Girls Golf Championship is a huge part of that target.

Credit Valley Golf and Country Club will host the international tournament from Sept. 30 to Oct. 5, with 24 teams representing 23 nations — Canada gets two squads — competing. Lindsay McGrath, a 17-year-old golfer from Oakville, Ont., said she’s excited to be representing Canada and continue to develop her game.

“I’m really grateful to be here,” said McGrath on Monday after a news conference in Credit Valley’s clubhouse in Mississauga, Ont. “It’s just such an awesome feeling being here and representing our country, wearing all the logos and being on Team Canada.

“I’ve always wanted to play in this tournament, so it’s really special to me.”

McGrath will be joined by Nobelle Park of Oakville, Ont., and Eileen Park of Red Deer, Alta., on Team Canada 2. All three earned their places through a qualifying tournament last month.

“I love my teammates so much,” said McGrath. “I know Nobelle and Eileen very well. I’m just so excited to be with them. We have such a great relationship.”

Shauna Liu of Maple, Ont., Calgary’s Aphrodite Deng and Clairey Lin make up Team Canada 2. Liu earned her exemption following her win at the 2024 Canadian Junior Girls Championship while Deng earned her exemption as being the low eligible Canadian on the world amateur golf ranking as of Aug. 7.

Deng was No. 175 at the time, she has since improved to No. 171 and is Canada’s lowest-ranked player.

“I think it’s a really great opportunity,” said Liu. “We don’t really get that many opportunities to play with people from across the world, so it’s really great to meet new people and play with them.

“It’s great to see maybe how they play and take parts from their game that we might also implement our own games.”

Golf Canada founded the World Junior Girls Golf Championship in 2014 to fill a void in women’s international competition and help grow its own homegrown talent. The hosts won for the first time last year when Vancouver’s Anna Huang, Toronto’s Vanessa Borovilos and Vancouver’s Vanessa Zhang won team gold and Huang earned individual silver.

Medallists who have gone on to win on the LPGA Tour include Brooke Henderson of Smiths Falls, Ont., who was fourth in the individual competition at the inaugural tournament. She was on Canada’s bronze-medal team in 2014 with Selena Costabile of Thornhill, Ont., and Calgary’s Jaclyn Lee.

Other notable competitors who went on to become LPGA Tour winners include Angel Yin and Megan Khang of the United States, as well as Yuka Saso of the Philippines, Sweden’s Linn Grant and Atthaya Thitikul of Thailand.

“It’s not if, it’s when they’re going to be on the LPGA Tour,” said Garrett Ball, Golf Canada’s chief operating officer, of how Canada’s golfers in the World Junior Girls Championship can be part of the organization’s goal to have 30 pros in the LPGA and PGA Tours by 2032.

“Events like this, like the She Plays Golf festival that we launched two years ago, and then the CPKC Women’s Open exemptions that we utilize to bring in our national team athletes and get the experience has been important in that pathway.”

The individual winner of the World Junior Girls Golf Championship will earn a berth in next year’s CPKC Women’s Open at nearby Mississaugua Golf and Country Club.

Both clubs, as well as former RBC Canadian Open host site Glen Abbey Golf Club, were devastated by heavy rains through June and July as the Greater Toronto Area had its wettest summer in recorded history.

Jason Hanna, the chief operating officer of Credit Valley Golf and Country Club, said that he has seen the Credit River flood so badly that it affected the course’s playability a handful of times over his nearly two decades with the club.

Staff and members alike came together to clean up the course after the flooding was over, with hundreds of people coming together to make the club playable again.

“You had to show up, bring your own rake, bring your own shovel, bring your own gloves, and then we’d take them down to the golf course, assign them to areas where they would work, and then we would do a big barbecue down at the halfway house,” said Hanna. “We got guys, like, 80 years old, putting in eight-hour days down there, working away.”

This report by The Canadian Press was first published Sept. 16, 2024.

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