The increase in the tax contribution of the 5% of the richest citizens will not lead to an exodus of capital or the loss of head offices, assures Gabriel Nadeau-Dubois. The parliamentary leader of Québec solidaire wants the wealthiest Quebecers to contribute more to the financing of public services.
Mr. Nadeau-Dubois explained that a united government would need financial resources to improve health and education services, to fight against climate change and to help households counter the effects of inflation, during a press briefing on Tuesday in Gatineau. “We need means to fight against climate change to build a future. And no, money doesn’t grow on trees, we’re going to get it. »
The left-wing party proposes two measures: an additional tax on large fortunes and an inheritance tax. He estimates that he can raise $2.65 billion with this proposal.
The taxation of the wealthiest is debated among economists. Proponents believe that higher taxation of the very wealthy would fund public services and reduce wealth gaps. Critics say such measures could lead to counterproductive consequences, such as an exodus of capital to a country where taxation is more advantageous.
The specter of an exodus of the rich would be a rather rare phenomenon when asked for a larger tax contribution, says the candidate in Hull and professor at the University of Quebec in Outaouais, Mathieu Perron-Dufour, who was present at the ‘announcement.
“Obviously, we brandish the ghost, because we do not want it, the tax, but, in fact, there are many other factors that determine why we choose a place or another to live, answers the economist. That (taxation) is one among many others and it is not dominant. »
The proposed additional 35% tax on estates over $1 million, however, raises questions about the protection of head offices in Quebec. In 2014, the Task Force on the Protection of Head Offices formed at the request of the PQ government of Pauline Marois identified inheritance tax as an obstacle to maintaining head offices in Quebec.
The idea is that upon the death of a business founder, the estate may have to sell shares of their business to pay estate tax. The shares of a family business could therefore be acquired by buyers outside Québec and control could pass to foreign interests.
Questioned on the subject, Mr. Nadeau-Dubois ruled out this risk. He pointed out that inheritance tax was present in other European countries and said that the sale of shares to foreign interests was not a phenomenon that had been observed elsewhere.
“There are 24 of the 37 OECD countries that have an inheritance tax and it is not phenomena that have occurred there. I don’t see why it would happen here. In fact, Quebec is rather an exception among developed countries. »
As for the tax on net assets, the measure provides for an additional 0.1% tax for citizens who have net assets of $1 million to $10 million.
For this bracket, this would represent an additional tax of $1,000 per $1 million. In other words, an individual with assets of $10 million would pay an additional tax of $9,000.
It should be noted that net assets also take debts into account. For example, an individual who owns apartment buildings worth $1.5 million, but who has a mortgage of $700,000, would not be affected by this measure.
For the $10 million to $99 million bracket, the tax rate increases to 1%. Above $100 million, the rate is 1.5%.