As for the tax system, we regularly hear it said that such a review could decrease the capacity of taxing those with the highest incomes, among other things. People also say that this could discourage work and savings.
I am going to take Steve Jobs and Bill Gates as examples, two individuals about whom it may be said that they succeeded in business. They launched their businesses in the 1970s, when the tax rates were particularly high. Over the past 100 years, the glorious 30 years were those decades where economic growth was the most sustained and where there were the fewest economic crises. It was also the period when tax rates were the highest.
I simply want to point out that that effect will not exist if you broaden the tax base, and as we advocate, reduce the opportunities for tax avoidance, that is to say the opportunities for those with the highest incomes to reduce their tax bill.
Moreover, the fact of reducing inequalities has a concrete impact. Here's an example. In Montreal, there is a 10-year gap in life expectancy between the Hochelaga-Maisonneuve neighbourhood and the Westmount neighbourhood. I am not talking about dollars here, but years of life expectancy, an extremely concrete indicator. This 10-year gap is also the same as the one between Bangladesh and Germany.
Reducing inequalities is a desirable goal. As our budget bulletin pointed out, it is a first step. However, it only stops the growth in inequalities. If they remain high, the negative consequences will persist.
Thank you.