Policy Forum: A Tax Shift — The Case for Rebalancing the Tax Treatment of Earnings and Housing Wealth

20 Pages Posted: 8 Oct 2018

See all articles by Paul Kershaw

Paul Kershaw

University of British Columbia (UBC)

Date Written: September 10, 2018

Abstract

This study encourages provincial and/or federal governments to shift the balance of revenue generation to rely proportionately less on taxing earnings in favour of more annual (deferrable) taxation of housing wealth. The author argues that this shift would help to address three concerns: (1) the growing gap between local earnings and home prices; (2) the growth in inequality driven by returns to housing capital; and (3) inequalities that result from violations of the intergenerational golden rule in government budgeting. To support this tax shift, the author suggests design considerations by reflecting on housing wealth surtaxes introduced by the government of British Columbia in 2018 and a "million-dollar homes tax" alternative that he proposes in order to stimulate further discussion.

Keywords: Property Taxes, Wealth Taxes, Housing, Tax Mix, Tax Equity

Suggested Citation

Kershaw, Paul, Policy Forum: A Tax Shift — The Case for Rebalancing the Tax Treatment of Earnings and Housing Wealth (September 10, 2018). Canadian Tax Journal/Revue Fiscale Canadienne, Vol. 66, No. 3, 2018. Available at SSRN: https://ssrn.com/abstract=3247140

Paul Kershaw (Contact Author)

University of British Columbia (UBC) ( email )

2329 West Mall
Vancouver, British Columbia BC V6T 1Z4
Canada

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