3 minute read
Message from Secretary-Treasurer Tosato
What would a Wealth Tax mean for Canadians?
In the federal election, versions of a wealth tax appeared in several party platforms: whether a one-time tax, or an annual one per cent paid on wealth of more than $10 or $20 million.
A wealth tax is not a new idea but it’s one that rarely sees the light of day, likely because big corporations and CEOs have far too much influence on our politicians. But it’s an important idea that could bring some balance of wealth back to Canada and provide funding for vital programs and services.
In the last 18 months or so, more than 5 million people died from COVID-19 around the world.
Here in Canada, the number of workers affected by either job loss or hours reduced by at least half peaked at 5.5 million¹, with hundreds of thousands still facing income insecurity.
We’ve watched as our healthcare system, already understaffed and underfunded, struggled to maintain elder and patient care. We saw our hospitals reach capacity and stop elective procedures and even life-saving surgeries. We watched as far too many workers died from COVID-19.
Working people everywhere have adapted to new realities at work and at home to keep their communities healthy, safe, and fed.
Yet, throughout this same time, many employers raked in profits while refusing to pay premiums, lobbying against paid sick leave, and asking employees to face angry customers, work close to other people, and take care of the elderly and ill.
During the first year of the pandemic, the richest people in Canada got $78 billion richer.²
But this financial disparity existed long before the pandemic.
But, then, earlier this year, we watched billionaires go to space.
Of course, not all billionaires went to space. Some were content just to fight tooth and nail to avoid giving their hourly workers premiums, substantial raises, health and safety protection, and more.
And making personal space travel a priority doesn’t make someone a bad person. After all, those projects required innovation, research, and the labour of many working people.
But the stark contrast of having the luxury of time and money to fly to space to look back on a planet that’s in crisis, or to protect millionaire shareholder profits instead of the livelihoods of working people, is a little troubling to say the least.
So, what would a wealth tax mean to most people?
The CCPA estimates that:
A one per cent tax on wealth over $20 million could generate about $10 billion in revenue in its first year.⁴
In Canada, that income could fund investments to improve the lives of millions of people: from affordable child care to affordable housing, from funding healthcare and education, to providing financial support as industries and the economy move toward more environmentally sustainable models, and much more. It might not mean you see more money on your paycheque, but it means your paycheque would go further.
We also need responsible government leadership to address tax havens, put limits on profit sharing while a company and industry is in crisis, and ensure a company is responsible to its employees in every way possible – from fair, livable wages to protected pensions, full benefits, and more.
As you work, shop for gifts and groceries, and interact with each other, please remember that kindness and courtesy, including wearing a mask, go a long way.
Have a wonderful holiday season. Stay safe, and take care.
In Solidarity,
Kelly Tosato treasurer@ufcw175.com
² https://www.policyalternatives.ca/newsroom/news-releases/one-year-pandemic-canadian-billionaire-wealth-78-billion
³ https://www.policynote.ca/federal-wealth-tax/
⁴ https://www.policyalternatives.ca/newsroom/news-releases/wealth-tax-would-raise-much-more-revenue-previously-calculated-parliamentary
