The Globe and Mail recently advocated taxing the sale of Canadians’ principal residences.
Their columnist Andrew Coyne also wrote, “As with most such proposals to take away someone’s tax break, the bigger the blowback, the better the idea.”
When did the absence of another government tax on private property become a “break?”
A “break” implies the government has an inherent right to Canadians’ private property, allowing us to retain a portion.
A tax on personal property, especially a home, is not a government right. It is an imposition on our financial security, privacy and freedom.
Taxing a principal residence ignores the fact that homeowners already pay GST, PST for construction, Property Transfer Tax, building permit fees, Development Cost Charges, amenity fees, BC Speculation Tax on cottages, and decades worth of property taxes.
In addition, there is a Capital Gains Tax on selling homes, other than a personal residence, for profit.
Taxes on housing generate billions of dollars in government revenue.
Fortunately, Jesse Kline, an editor with the National Post set the record straight. He said,
“…the Globe and Mail argued the real estate market should be cooled by taxing capital gains on the sale of primary residences, conveniently forgetting that Canadians already pay huge sums of money in property taxes…”
He adds, “What’s not supposed to happen is for meddlesome politicians to artificially decrease the supply of housing and drive up prices through bad zoning and other laws, and then use that as an excuse to increase taxes.”
Exactly. Record immigration, millennials starting families, and low interest rates have spurred housing demand while disconnected municipalities choke supply with outdated zoning.
Another tax on our principal residences only erodes our financial security.
And it’s never enough…