Tax those who're richer than me

The survey of 1,512 Canadians found that 82 per cent support a tax on luxury goods, including items such as pricey cars, boats, yachts and private planes. They are also in strong support of a so-called wealth tax on those with higher incomes, with 81 per cent of respondents in support of such a policy. Increasing taxes on corporations – something each of the three major parties has proposed – also received 78 per cent support.

But Canadians balk when it comes to the idea of a capital gains tax on principal residences, something 67 per cent of those surveyed say they are against. However, half of young Canadians – those between the ages of 18 and 34 – are in support of a capital gains tax on principal residence, likely a reflection of the affordability challenges in the Canadian housing market.

Summary:

• Canadians to wealthy people: Fuck you!
• Canadians want 0% tax on their real estate profits.
• Young Canadians to older Canadians: Fuck you!

Anyway, a wealth tax is a horrible idea on many levels. Here's a simple scenario. The government imposes an annual tax of 1% on the super wealthy. A guy who has exactly one billion dollars will have to pay an extra $10 million in just the first year. Would it really be a surprise if he moved his entire wealth to a different part of the world? There's no shortage of countries that'll be delighted to give this guy citizenship for the volume of capital he'll bring. So, that 1% tax will bring $0 from this one billionaire. Worse, Canada will lose all other future taxes (income, sales, capital gains, etc.) from him.

Taxing wealth is a terrible plan because capital can be easily and quickly moved away. Of course, it plays well with the public because they're envious and stupid.