The Wealth Tax.
The article on a possible Wealth Tax in the April 13, 2021 Opinion Section of the Toronto Star, argues that a Wealth Tax would be the simplest, fairest and most effective way to collect billions of dollars of extra revenue a year.
Nothing would be further from the truth. A Wealth or Estate tax is easily avoided by means of tax-free charitable foundations, offshore corporate holding companies, or many other devices. These devices if properly implemented are effective, legal tax planning measures- Tax Avoidance that is legal, as distinguished from illegal Tax Evasion that can be challenge by the tax collectors effectively.
In 1969, Canada eliminated the Federal Estate Tax. This was done in part because it did not raise much revenue, and in part because the government made capital gains taxable for the first time, albeit at half rates.
To make a Wealth tax effective would be a running battle between the tax planners for the wealthy and the tax collectors. Rather like the continuous struggle between the hackers on the internet and the service providers that strive to keep them out.
About the Author
Peter Farwell is the author or coauthor of several books on technology subjects. The subjects and leads to the books are spelled out on this website. The website also includes Current Developments in the selected topic areas, as well as blogs on these. subjects.