CMHC in Access To Information records for the first time acknowledged intense opposition to its promotion of a home equity tax. Staff in internal emails uncovered by the Canadian Taxpayers Federation concluded it was “not worthwhile” to pursue the idea..“Canadians can’t afford higher home taxes,” Franco Terrazzano, federal director of the federation, said in a statement..“Why is CMHC wasting time and money studying home equity taxes?”.According to Blacklock's Reporter, the Canada Mortgage and Housing Corporation in 2020 paid $250,000 for research on an equity tax, then approved another $200,000 to promote the concept..“It is not worthwhile,” read a March 25 staff email. There was “very little” public or media interest in pursuing the idea, wrote staff..Researchers in a report last January 5 proposed a $5.8 billion annual tax on home equity. It suggested a 1% yearly levy on primary residences assessed at $1 million or more affecting some 1.4 million homeowners nationwide..The tax report Wealth And The Problems Of Housing Inequity Across Generations complained increased values in home equity resulted in “windfalls gained by many homeowners while they sleep and watch TV.” Cabinet immediately rejected the report..CMHC in a Media Review report admitted an equity tax was controversial..“The reaction both in the media and by the public was swift, intense and extremely varied with reactions ranging from unequivocal support to complete opposition,” wrote staff..Housing Minister Ahmed Hussen in a letter distributed to CMHC ruled out any equity tax. “Let me be very clear once again that our government is not considering implementing a home equity tax or surtax on primary residences,” wrote Hussen. “Any suggestion to the contrary is false.”.“CMHC is not responsible for the views and recommendations included in the report,” wrote Hussen, adding: “There is no requirement for the Government of Canada or CMHC to adopt any of the proposals.”.Access To Information documents earlier showed CMHC sought out researchers to study an equity tax..“We have glorified this idea of home ownership, haven’t we?” Evan Siddall, then-CEO of the federal insurer, said in a 2019 podcast with one tax advocate. Asked if he considered home ownership a “driving source of inequality,” Siddall replied: “For sure.”.The Taxpayers Federation said the proposal would not reduce inequality..“New taxes won’t make homes more affordable,” said Terrazzano..“Tax hikes make things more expensive. We need to improve affordability.”
