OPINION: A new report calculates how much you’d have to make per hour to afford rent. The result is an indictment of all levels of government
OPINION: A new report calculates how much you’d have to make per hour to afford rent. The result is an indictment of all levels of government
The solution involves taxing and regulating the wealthy, and investing directly in public works at a large scale–all which is utter heresy to the neoliberals that comprise both major parties and much of our civil service.
Our government and our representatives are not psychologically equipped to do the right thing. Fer chrissakes, Andrea Horwath’s platform was more right-wing than Mike Harris’ was in the late 90s, and she’s the progressive option.
We’ve had almost thirty years of not investing in society, of handing out cash and tax breaks like the supply-side pixie dust it is and just hoping that it’ll all work out. It hasn’t. And now, like someone who patted themselves on the back for saving money by not doing any home repairs for thirty years–and then blowing all the money we saved on a new boat and a trip to Vegas–we’re staring at a roof that’s collapsed and wondering what the hell we’re going to do.
The answer? Again, tax the wealthy. Marginal tax rates at 90% for the rich, corporate tax rates through the roof, increased taxes on capital gains, including unrealized ones, estate taxes: all of it. It should all be on the table, because we’ve let it get so bad that the only fixes are horrifically expensive. We should have done this twenty to thirty years ago. That would have been the best time. The next best time is now.
Will the rich leave? Sure they will. Fuck’em. Don’t let the door hit you on the ass on the way out. I’m sure someone equally smart but less greedy will pick up where the parasites left off.
“tax the wealthy” - I would say that in particular this should be taxing wealth. Canada is in the unique position that most of the wealth in this country is real-estate, and therefore has a street address. Capital flight is much more difficult under that circumstance. The guy who owns three houses and a few condos and a car-dealership is far more interesting than a well-paid surgeon, but one owes more of their lifestyle to their wealth rather than their labour. I tend to dislike Jagmeet Singh on policy issues but I think he’s spot on about it being time for wealth taxes in Canada.
Normally I’m pretty neoliberal when it comes to the housing crisis (ie: a huge part of the problem is overregulation) but at this point the solution will require undoing decades of damage and that will mean a need for below-market housing at least until the free market can catch up, if not forever. Taxing Canada’s wealthy land-owners is an obvious way to fund this, since they’re the ones profiting the most from this shortage.
That’s a really good point I’ve never seen articulated that way before.
I’ve long been curious about the impact of tweaks to the principal residence exemption for capital gains tax. Eg a cap, ie once a house has appreciated say $1M in value, further appreciation is taxable as revenue.