Friday, September 12, 2025

Latest

Here’s Yet Another New Way To Tax Canadians

Cities across Canada could soon have a new way to raise revenue if a proposal from the Canadian Centre for Policy Alternatives gains traction. The think tank is pitching the idea of allowing municipalities to collect a municipal income tax through the Canada Revenue Agency.  

Yes, it’s a new way to tax people.

Senior economist David Macdonald explains that under the proposal, cities would be able to tack on a 1% income tax to certain income brackets. This would provide an alternative revenue stream beyond just property taxes.

“Instead of being heavily reliant on property taxes, they can diversify their revenue base and access income taxes if they want,” Macdonald told CityNews.

The proposal comes as many cities are facing financial constraints after years of having major programs downloaded onto them by provincial and federal governments, despite not having the same tax tools as higher levels of government. Macdonald notes that seven Canadian cities now have bigger expenditures than the smallest territory.

He estimates that Vancouver alone could raise an additional $100 million per year by implementing a 1% tax on incomes above $56,000. Nationally, urban revenues from income taxes rose around 50% from 2019-2022, compared to just 7% for property taxes over that period.

Macdonald argues that property taxes are inherently flawed as primary revenue sources, as the amount cities collect stays flat even as home values rise year-over-year. He adds that prior to the 1940s, it was common for municipalities to levy income taxes before those powers were removed.

“These are powers that cities used to have about a century ago, but they haven’t really had since the Second World War,” he said.

While potentially controversial especially in today’s inflationary environment, proponents say a municipal income tax could provide cities with a way to keep up with funding needs for key services as they take on greater responsibilities.


Information for this story was found via CityNews, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Rising Rates Globally Set To Hit Spain, Australia, Canada The Hardest

Many corners of the financial and investing world are grappling with challenges that were not...

Saturday, September 17, 2022, 09:00:00 AM

Housing Minister Doesn’t Want Mayors To Be Blamed For The Housing Crisis, So Canadians Blamed Him Instead

Minister of Housing and Diversity & Inclusion Ahmed Hussen penned an op-ed castigating the opposition...

Saturday, July 15, 2023, 11:27:00 AM

Canadian Home Sales Set New Record With Increase of 45.6% in September

Canada’s housing market has thus far defied the coronavirus pandemic, and despite many analyst’s projections...

Thursday, October 15, 2020, 12:47:41 PM

Canadian Premiers Press Trudeau for Stronger Border Security

Canadian provincial leaders urged Prime Minister Justin Trudeau on Wednesday to strengthen border security and...

Monday, December 2, 2024, 02:04:00 PM

Trudeau’s Outreach to Carney Raises Questions About Freeland’s Position

Is he going to make her take the fall?...
Friday, December 13, 2024, 07:47:13 AM