Prime Minister Justin Trudeau is eyeing a $60-billion wealth tax to pay for the Liberal government's spending spree, according to heavily redacted documents that were obtained by the Canadian Taxpayers Federation (CTF).."While many Canadians might not be directly hit by a wealth tax, its impact on the overall economy means everyone will suffer," said Ontario Director for the CTF Jay Goldberg.."When wealthy people flee, they take not just their wealth, but also their income and spending power, with them. Wealth taxes shrink the economic pie.".The Parliamentary Budget Officer (PBO) released a report early last year looking at the revenue implications of implementing a one-time wealth tax on Canadians. The PBO report, which was written at the request of a Liberal member of parliament, found that a one-time wealth tax would hit taxpayers who have wealth of more than $10 million and rake in $60 billion..According to documents, Trudeau requested an analysis of the report to explore the “merit of the policy.” In a memorandum explicitly addressed to Trudeau, bureaucrats lay out exactly how a wealth tax could be imposed on Canadians..But Trudeau’s own briefing note admitted that wealth taxes are “complex” and generate “tremendous uncertainty,” meaning a wealth tax may not generate as much revenue as the government hopes while having potentially damaging economic implications in the process..The CTF said embracing a wealth tax in Canada would be a "colossal mistake," as it would hurt the entire economy. It pointed out that other countries have "tried and then quickly abandoned" wealth taxes, as they cause the ultra-wealthy to leave the country taking their investments and businesses with them. .After 12,000 millionaires fled France in a single year, President Emmanuel Macron, led a successful push to repeal France’s wealth tax. He saw how detrimental the tax was to the national economy. Macron said the wealth tax had turned France into “Cuba without the sun,” and Macron declared that it had to be overturned.."France figured out the dangers of a wealth tax the hard way, losing rich people and income tax revenue as a result. Canada should learn from France’s experience and take a pass on wealth taxes," said Goldberg..Because rich people are mobile, many of France's wealthiest citizens decided to move to Denmark. The same thing would happen in Canada, Goldberg pointed out..He added that if an entrepreneur that made $30 million per year and paid $15 million in income taxes left Canada, it would take fifteen hundred taxpayers earning $50,000 per year to cover that annual bill.."Embracing a wealth tax in Canada would be a colossal mistake. Wealth taxes don’t just hurt the rich. They hurt the entire economy," Goldberg said.
