Ce n’est pas le moment d’introduire une taxe de luxe

Avec tout ce que la pandémie a causé à l’industrie de l’automobile, le plus important maintenant, c’est la possibilité de récupérer.

On dit que le printemps apporte une vie nouvelle vie; c’est la saison de l’espoir. Il apporte transformation et changement — de l’obscurité à la lumière, du froid à la chaleur, du gris aux éclats de couleur. C’est la période de nettoyage de la maison et de préparation du jardin.

Dans la bulle politique d’Ottawa, le printemps est aussi une période où il se passe beaucoup de choses. C’est la saison du budget, le moment où le gouvernement fédéral présente ses objectifs et ses aspirations pour l’année à venir.

Une telle occasion s’est produite en avril ; Chrystia Freeland, la première femme ministre canadienne des Finances, a dévoilé le premier budget du gouvernement libéral en plus de deux ans, à une époque où les cas de COVID-19 sont de nouveau à la hausse dans tout le pays.

Ce budget tant attendu a été l’un des plus importants de l’histoire récente, car de nombreux secteurs de l’économie sont encore sous le choc des effets dévastateurs de la COVID-19, et les provinces jonglent avec les nouvelles fermetures et un déploiement national fragile de la vaccination.

Le document de 700 pages, qui pourrait servir de base à la campagne électorale des libéraux, a fourni la feuille de route du gouvernement pour la reprise économique du Canada après la crise ainsi qu’un plan visant à permettre aux entreprises de se rétablir.

The themes of supporting the hardest hit sectors, investing in green energy, and supporting those who have been disproportionately affected by COVID-19 (including women, Indigenous peoples, youth and racialized Canadians) ) were recurring within this budget.

“The auto industry has been hit hard by COVID-19, vehicle sales have seen record declines, and the current global shortage of microprocessors is creating strong headwinds for the industry’s recovery. Now is not the time to impose new taxes. « 

The government has largely attempted to balance the need to provide an ongoing bailout for an economy weakened by the pandemic and set the stage for a stronger economic rebound.

Essential programs like the Canada Emergency Wage Subsidy Program (SSUC) and the Canada Emergency Rent Subsidy Program (SUCL) have been extended until the fall. However, they are expected to take off in the coming months, indicating the government’s willingness to wean businesses off these support programs as the economy recovers. The budget also included massive spending of $ 100 billion over the next two years, including a plan for a national learning and child care program.

That said, as the popular saying goes, “Nothing is free,” and the budget proposed a number of measures to add revenue to federal coffers after a year of stratospheric public spending.

Although the budget does not propose a « national wealth tax » as suggested by the NDP, the budget proposed higher spending on social programs like child care, while taxing « luxury » items like planes, boats and cars as well as web giants.

As you will recall, the luxury tax was part of the liberal election platform in 2019. The pledge has been postponed for the past two years, in part due to overwhelming opposition from CADA, across the board. industry and European countries.

The vast majority of luxury vehicles sold in Canada are made in Europe. The government recently signed a free trade agreement with the European Union; therefore, the new levy can be seen as a non-tariff barrier to trade and contrary to the spirit of the agreement.

Beyond the economic argument that luxury royalties do not work and are ineffective, as has been demonstrated in many other jurisdictions, including the United States, the timing of this tax is highly questionable.

The auto industry has been hit hard by COVID-19, vehicle sales have seen record declines, and the current global shortage of microprocessors is creating strong headwinds for the industry’s recovery. Now is not the time to impose new taxes, specifically, an arbitrary and inefficient tax system like a luxury tax.

Instead, the government should focus on the recovery and take the necessary steps to ensure that the economy recovers from the crisis. Strong economic growth after the pandemic will support revenue generation for the government. Businesses need an economic environment where they can thrive and remain competitive, not disruptive policies that will hamper their growth.

On the bright side, Budget 2021 proposed to implement the new tax next year, with separate legislation to be introduced in the fall. This provides an opportunity to fine tune the details of the law and minimize the impact on the industry.

While luxury tax policies are morally appealing for the wealthiest among us to pay our fair share and generate additional income, the reality is that it doesn’t work. They are punitive, economically inefficient and tend to disproportionately affect target industries.

In addition, in Canada, luxury goods are already taxed in proportion to their retail value, so the very rich pay more when they buy expensive cars.

If Ottawa’s ultimate goal is to generate efficient income and reduce income inequality, there are better ways to achieve this through economic growth, job creation and an efficient structure. taxation and administration at all levels of government. Imposing this burden on Canadian businesses simply will not cut it.

Articles similaires
Share via
Copy link