If you’ve been following Canadian politics for more than a few election cycles, you might feel a strange sense of déjà vu heading into the next vote.
Mark Carney may be the new face at the front of the Liberal band, but the tune he’s playing is one Canadians have heard before, and not everyone’s a fan. Behind the polished speeches and promises of prosperity is a tax-heavy agenda that’s raising eyebrows and blood pressure alike.
The Greatest Hits (of Taxes Past)
Let’s start with one of the more contentious proposals that’s been floating in the political ether: the home equity tax. The concept? Tax the “unearned wealth” of Canadians whose homes have appreciated over time, particularly older homeowners who’ve paid off their mortgages and now sit on valuable real estate.
The group Generation Squeeze, a favorite among some Liberal thinkers, argues this is about “generational fairness.” Their idea is to introduce a surtax on homes worth over $1 million, targeting what they say is the top 12% of homeowners. The logic is that wealth gained from housing shouldn’t be treated differently from wages.
But here’s the rub: homeowners already pay plenty. From property taxes and GST/HST on renovations, to capital gains on non-principal residences and (until recently) carbon tax on home heating, the idea that homeowners are sitting in untaxed luxury doesn’t exactly hold up.
A home equity tax would only add to this pile, punishing people for doing what we’ve long told Canadians to do: save, invest, and work toward owning their home. It’s not just controversial; it feels like moving the goalposts after the game has already been played.
Enter the Wealth Tax (Again)
Another recurring chorus in the Liberal tax tracklist is the wealth tax. This idea isn’t new, but it’s been gaining renewed attention, particularly as the Liberals face pressure to fund expansive new spending promises. A tax on net assets (not just income) is pitched as a way to curb extreme wealth and redistribute resources. But globally, the tune is fading: only a handful of countries still have a net wealth tax, and many have dropped it after finding it ineffective or economically damaging.
France, for example, scrapped its wealth tax in 2017 after watching more than 60,000 wealthy citizens flee the country. It was too expensive to administer and failed to generate the revenue promised. Sound familiar?
Still, despite these cautionary tales, the Prime Minister’s Office explored such a policy in 2021, and with Carney at the helm and an appetite for big spending, don’t be surprised if the idea re-emerges.
The Climate Refrain
Climate policy is another area where the Liberals, and Carney in particular, seem unlikely to stray from old tunes. Carney’s recent decision to suspend the carbon tax may have seemed like a bold pivot, but critics argue it had more to do with political pressure than a real change of heart. After all, the legislation hasn’t been repealed, meaning it could be reintroduced at any time, likely after the ballots are counted.
And let’s not forget the industrial carbon tax, which could be cranked up under a Carney government. The climate rhetoric might be noble in spirit, but it often seems disconnected from economic reality, something businesses and consumers alike can’t afford to ignore.
What’s Old Is New Again
At the end of the day, Mark Carney may be a fresh face, but the policies he’s aligned with are anything but. Whether it’s home equity taxes, wealth taxes, or resurrected climate levies, it’s the same old playbook with a new cover.
Canadians hoping for a new direction may want to listen closely because the lyrics haven’t changed. As election day approaches, it’s worth asking: are we ready to sing along with the same tune again, or is it finally time to change the station?
