Does Canada really need an inheritance tax?
A new report published by the Canadian Centre for Policy Alternatives (CCPA) discovered that the 87 richest Canadian families have more collective wealth than everyone in New Brunswick, Prince Edward Island, and Newfoundland combined. This wealth is typically concentrated in the same families, and is passed down among many generations leaving very little room for change. In response, David Macdonald, an economist, has proposed a 45% tax on estates larger than $5 million, similar to other countries, to help reduce the gap. However, in Canada, the addition of this type of tax could result in certain assets being taxed two if not three times.
“Canada is the only country in the Group of 7 advanced economies (G7) without an inheritance, gift or estate tax.”