However, the government has shown little appetite for systematic tax reforms to reduce economic inequality and ensure Canada’s long-term fiscal health. The pandemic has exacerbated wealth inequality, with the fortunes of the country’s 44 billionaires increasing by almost $63.5 billion since March 2020 and a handful of global corporations generating huge profits.
Despite commitments in the Speech from the Throne to tackle extreme wealth inequality, the government rejected some of the leading policy solutions to curb extreme wealth accumulation shortly afterwards. In November 2020, the government voted down an NDP motion in the House of Commons proposing a wealth tax and new measures to combat pandemic profiteering by large corporations.
One positive step this year was the commitment to introduce automatic tax filing, which could help more marginalized people get access to government transfers. Moving forward, the government should apply a GBA+ equity lens to all tax expenditures and government transfers in Canada; and close tax loopholes, including the preferential treatment of capital gains and stock options that largely benefit wealthy individuals and large corporations.
