For Immediate Release
July 20, 2020
Kram Denounces Liberals’ Proposed Home Equity Tax
Michael Kram, MP for Regina-Wascana, today responded to reports that the federal Liberal government is eyeing imposing a first-ever tax on home equity.
“Home ownership is fundamental to our Canadian middle-class way of life. Over two-thirds of Canadian families own their own home and their home represents their primary tool for investing for their financial future. Home equity has always been sacrosanct in this country. A tax on home equity would devastate the retirement plans of millions of Canadians,” Kram said.
Kram’s remarks come on the heels of a report from Blacklock’s Reporter that the Canada Mortgage and Housing Corporation (CMHC) has spent $250,000 to commission a study from the University of British Columbia to examine options for a home equity tax, among other potential policies. The stated objective of the study is to find ways to “level the playing field between home-owners and renters”.
“The Liberals are always looking for new things to tax. Except instead of going after the rich, they are going after the middle-class. The Liberals can’t stand the idea that an average, middle-class home-owner might actually make a profit and gain a benefit from investing in their residence instead of renting.”
This is not the first time that the Liberal government has considered a home equity tax. In the lead up to the 2019 federal election, a leaked Liberal Party policy document that proposed a 50% tax on home equity at time of sale. The Liberals denied this, claiming that the document was a proposal and not an official policy. CMHC has likewise tried to downplay the most recent study, saying that the project is aimed merely at “research solutions to housing, wealth, and inequality.”
“Where there’s smoke there’s fire. This idea of a home equity tax comes up over and over again in Liberal policy musings. Despite their denials, it is clear they still favour the idea. It’s just a matter of time before they act on this agenda,” Kram said.
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For more information, contact:
Constituency Assistant for MP Michael Kram, Regina-Wascana