Evidence of meeting #117 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was education.
A video is available from Parliament.
10:35 a.m.
Chair and Founder, Broadbent Institute
Let me put it in context.
It has been said by a number of people in recent years that the top 1% have had about 30% of all the income growth in the country. The argument is that if they have really benefited, to generalize a lot, from globalization and other reasons, disproportionate to middle-class and lower-income Canadians, then the argument is, look at restoring some of the tax rates they used to pay.
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
I understand what you're saying.
What other tax cuts would you want to see us reverse, because, frankly, those folks are paying the majority of taxes that pay for our social programs. I'd hate to chase them away. Nevertheless, it's a difference in philosophy.
10:35 a.m.
Chair and Founder, Broadbent Institute
I don't think they're going to go anywhere. The last report and all the survey data do not indicate they're going to pack up and move.
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Okay. So what other tax cuts would you see us reverse?
10:35 a.m.
Chair and Founder, Broadbent Institute
We're talking about capital gains; 50% of capital gains are exempt from taxes.
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Any others?
You mentioned the tax credits, for example, that we should eliminate these “boutique” tax credits, is what you called them in the report. What tax credits were you referring to when you made that statement?
10:35 a.m.
Chair and Founder, Broadbent Institute
Frankly, I would have to check specifically, to look at the list.
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
We'll accept a written response to the question after the fact.
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
The other things you say in your report, sir, are that we should “consider implementing taxes on...inheritances of wealth which pass morally-unjustifiable class privilege...” and that “significant revenues could be raised by the introduction of a financial transactions tax”.
Would you clarify what taxes you're referring to in that, sir?
10:35 a.m.
Chair and Founder, Broadbent Institute
The transactions tax is a very old idea that is coming into force. In fact, if I remember correctly, the European Union adopted it last week.
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
How would you see it work? The financial transactions tax you would implement, how would you see that work?
10:35 a.m.
Chair and Founder, Broadbent Institute
When you have transactions, movements of capital around, there are two purposes, I remember, when it was first proposed by a Nobel prize-winning economist. One is that it's a source of revenue when there are these flows of billions of dollars, instantly, in seconds. One is to get a source of revenue, and out of this—
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
But who would you tax, is my question? Who would you tax?
10:35 a.m.
Conservative
10:35 a.m.
Chair and Founder, Broadbent Institute
Well, whoever is initiating the transfer—
10:35 a.m.
Chair and Founder, Broadbent Institute
—would be the source of taxing. One purpose of it is to deter, depending on how it's implemented, highly rapid and highly destabilizing flows. It’s a technical matter that, other than making the general observation, I won't go beyond.
10:35 a.m.
Chair and Founder, Broadbent Institute
That's what is in mind with the transfer tax. I repeat that the European Union...with the notable exception of Britain’s objecting, and they're not part of the euro, the rest of the western European countries have adopted that.
What was the other tax you referred to?
10:35 a.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
I think we've run out of time, but I’m referring to your inheritance on wealth tax.
10:35 a.m.
Chair and Founder, Broadbent Institute
My view is that it should be looked at. We didn't say it should be adopted. Again, if you look at European countries, many, if not most, have some form of tax like that already.
I'm saying that if we really are concerned in general about inequality, these are things we should be looking at. We didn't say they should be, and I emphasize this, all adopted. We said they should be looked at.
10:35 a.m.
Conservative
10:35 a.m.
NDP
Peggy Nash NDP Parkdale—High Park, ON
Thank you very much.
Mr. Dinsdale, we haven't talked much about first nations this morning. As you've mentioned, some of our most pressing inequality challenges are among first nations.
You talked about a variety of concerns around taxation, around education. Certainly there is a great concern about the 30% gap between what first nations kids on reserves get versus kids in the rest of the country. There were some measures in the recent budget on training for first nations youth.
I'd like to ask you about consultation and about discussions with the federal government and the involvement of first nations in developing a strategy to address inequality and poverty in many first nations communities.
Would you tell me what consultations have taken place?
