According to a new Ipsos Reid poll released Thursday, most Canadians feel taxes on the rich should be raised.
Nine in ten (88%) Canadians ‘support’ (48% strongly/40% somewhat) the following resolution…the rich should pay more taxes. Just one in ten (12%) Canadians ‘oppose’ (3% strongly/8% somewhat) this resolution.
The survey also shows a similar proportion (89%) of Canadians also indicate they’d be ‘supportive’ (54% very/34% somewhat) of a ‘millionaire’s tax’, whereby families with a combined annual household income greater than $1,000,000 would pay a special or additional tax on all income over a million dollars.
The pollster also asked Canadians what they considered to be “rich”. That answer —which might surprise you — is a household income of $195,000.
Gregory Thomas of the Canadian Taxpayers Federation says that raising taxes on the rich won’t work in the long term.
“The CD Howe Institute illustrated this recently in a study of Ontario’s tax hike [in their 2012 budget] for incomes over $500,000. CD Howe forecasts that hiking taxes to an effective rate of 49.73 per cent will bring the government extra revenue this year, because Ontario took taxpayers by surprise with the revenue grab,” Thomas told Yahoo! Canada News.
“But within a few years, all that extra revenue will disappear, as taxpayers make adjustments, moving assets and income into other jurisdictions to avoid the high rates.”