Trudeau’s “rich tax” will make poor Canadians wretchedly poor

luxury tax

Source: National Post

In the garb of protecting the environment, the Canadian Prime Minister will ring the death knell for his own country. It has been known to us for quite some time now, that Trudeau can go to any lengths to support the country’s green goals. Although, he himself flouts them is another issue. Now, in the name of the green goals Justin Trudeau is looking forward to hitting the poor. Let us tell you how.

Often, calls to “tax the rich” fall on deaf ears but when it comes to Trudeau’s Canada, the scenario has to be something different. Ergo, Canada appears to be listening to these calls. And, Trudeau’s administration is now all set to impose a new “luxury tax” on the sale and importation of high-valued cars, planes and yachts.

Macleans. Ca

The Select Luxury Items Tax Act, which will go into effect on 1st September 2022, is positioned as a component of the Canadian government’s commitment to a more equitable tax system. The levy is the culmination of budget suggestions that were initially made last summer and have since won legislative support.

Now, this might come as music to the ears of the poor in Canada. But, they soon will be up in arms once they know they are heading towards an impending doom.

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Who will pay the tax?

Certain vehicles and aircraft costing more than $100,000 (€76,400) and certain yachts costing more than $250,000 (€191,000) are subject to the new luxury tax. It shall be determined as either 10% of the vehicle, aircraft, or vessel’s full retail value or 20% of the amount above the threshold.

Only new automobiles bought by customers for personal use will be subject to the tax. Most sales made after January 1, 2022, will be subject to it retroactively.

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The main question here is — who will be afflicted? What if we say the poor? Many of you might be bowled over. Won’t you? You see, it is a myth that levying tax on the rich will take their wealth away from them. Sadly, it will eventually weaken the weak in society. Now, let’s do some maths.

Canada’s luxury tax ensures that “those Canadians who can afford to buy luxury goods are contributing a little more,” according to a statement on the Government of Canada’s website. Certainly, the taxpayers will hardly be affected by the “rich tax” as they will just be contributing some more amount which is not going to be a burden on their pockets.

However, it could deter the rich from buying the gas-guzzling luxurious cars, yachts, and private jets. Low sales will eventually force the companies to lay off employees. Thus, it will be the employees who will see their salaries being deducted, bonuses being seized along with the fear of losing their jobs. It will be the employees who are going to bear the brunt of Trudeau’s “tax the rich” policy. Evidently, the poor will head towards becoming wretchedly poor.

https://www.youtube.com/watch?v=lfjscIJYWMw

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