PBO confirms new tax brackets for the wealthiest would raise over $1 billion a year

OTTAWA — A report released today by the Parliamentary Budget Officer, requested by NDP Finance Critic Don Davies, confirms that adding three new federal income tax brackets for the wealthiest 0.3 percent would raise over $1 billion annually.

“Adding new brackets with a modest 1% increase each for the wealthiest 0.3 per cent is a fair and reasonable way to make our tax system more progressive," said Davies. "Instead of selling off Canada’s strategic assets like ports and airports, we should be asking those who have benefited the most from our society to contribute their fair share.”

The findings come amid the Carney government's push to privatize public infrastructure, opening the door to ownership and control by foreign investors for a one-time revenue boost.

The PBO report resulted from Davies’ introduction of M-24 in Parliament earlier this year. It found that adding three new federal income tax brackets, each one percentage point higher on income over $500,000, $750,000 and $1 million, would generate $4.3 billion over four years. The majority of revenue would come from those making more than $1 million annually, representing the wealthiest 0.1 percent of Canadians.

“At a time when Canada is facing unprecedented threats to its sovereignty, everyone must step up and do their part,” added Davies. “The wealthiest Canadians can afford to do a little more to help protect and build the country that made their success possible.”

The proposal would help restore progressivity to Canada’s tax system at the highest income levels. Research has shown that preferential tax treatment and tax avoidance currently allow the wealthiest households to pay the lowest effective tax rates despite having the highest incomes.

“New Democrats are calling on the government to adopt this proposal without delay,” concluded Davies. “Working Canadians shouldn't be asked to make more sacrifices while those at the very top fail to pay their fair share.”