The Canadian Taxpayers Federation (CTF) confirmed the Trudeau government is still in discussions pertaining to a home equity tax, according to new documents obtained by CTF. .Despite claims from the Canada Mortgage Housing Corporations (CMHC) a home equity tax will not be introduced in Canada, the CTF discovered federal staffers in Prime Minister Justin Trudeau's office met with a group that received funding to produce a report recommending a home equity tax. .“During the election, Trudeau told voters he wasn’t going to impose a home equity tax, so why are his staff meeting about home equity taxes?” asked Franco Terrazzano, federal director of the CTF..“If Trudeau wants Canadians to believe he’s not coming after our homes, then his government should stop acting like it’s considering a home equity tax.”.Currently in Canada, when a homeowner sells their primary or principle residence — the home they reside in — they do not have to pay any tax on the proceeds from the sale. .Funding was provided to a group called Generation Squeeze by the CMHC to study housing policy. Its report from the study included recommendations for a home equity tax. .On several occasions, the Trudeau government has stated it is not studying a home equity tax and has no plans to introduce one. .“The Liberals have no plan to ever introduce a home equity tax on primary residences,” wrote the office of Liberal MP Terry Beech in an email to a constituent..“The only study that went into the introduction of the home equity tax was by a non-government organization that has no effect on the decisions of the Liberal Party, nor the Canadian Government.”. Despite the denials, the CTF said it obtained emails noting at least two meetings with the Prime Minister’s Office and the head of Generation Squeeze, Paul Kershaw, one meeting dated Nov. 18, 2021. .“Just keeping you in the loop,” wrote Kershaw on November 16, 2021, to CMHC executive Debbie Stewart..“I will be briefing the PMO on Thursday (November 18, 2021) about our Solutions Lab report, including giving them a briefing about the tax policy recommendation.”.Kershaw again met with the PMO a couple weeks later. .“I had a second meeting with the PMO today,” wrote Kershaw to Stewart, on December 10..“It makes me giggle to write this, because the way our Lab has been politicized would lead many to think the PMO is keenly aware of the Lab, and all of its activities, and that I have some magical direct access — if only!”.The CTF said it asked the PMO about the meetings, but did not hear back in time for publication. .According to the CTF, the CMHC spent $250,000 on the Generation Squeeze report, which included recommendations targeting the “housing wealth windfalls gained by many home owners while they sleep and watch TV.”.Recommendations in the report include charging an annual surtax of 0.2% to 1% on the value of a home beyond the million-dollar threshold. The tax would accumulate until the home is sold or inherited, costing Canadians and estimated $5.8 billion per year. .As an example, the CTF highlighted the cost Canadians could face with the new surtax for the sale of a home in Toronto or Vancouver sold after 10 years of ownership with a rate of 0.5% would cost close to $10,000. .CMHC confirmed it gave an additional $200,000 in April to Generation Squeeze and the CTF said it also obtained records showing the organization pitched for additional funds to "influence public opinion in favour of a home equity tax," said CTF..The documents reference the development of “key messages” aimed at changing public opinion about the group’s home equity tax proposal..The CTF said when it asked CMHC about home equity taxes, it confirmed the federal government will not move forward with any proposals to tax primary residences and said any suggestion to the contrary was false, but did not confirm if it would keep funding Generation Squeeze's advocacy work. .“The government is giving taxpayers every reason to worry that a home equity tax is coming down the pipe,” said Terrazzano..“If Ottawa isn’t bringing in a new home tax, then the CMHC shouldn't fund and promote home equity tax studies.”
