BarrieToday welcomes letters to the editor at [email protected]. Please include your daytime phone number and address (for verification of authorship, not publication). The following letter is in response to LETTER: MP says new luxury tax will 'devastate' manufacturing,' published June 9.
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I must be missing something, but Mr. John Brassard, one of Barrie’s MPs, is protesting an increase in taxes on luxury goods bought by the wealthiest members of our society.
“... New NDP-Liberal tax that will devastate Canada’s car manufacturing sector, boating sector and aerospace sector. Bill C-19 will impose a new luxury tax on automobiles and aircraft valued over $100,000 and vessels valued over $250,000.”
The cars most people buy cost $25,000 to $35,000. To exceed $100,000 you must look at the Cadillac Escalade and Lincoln Navigator, both around $110,000. Sorry, Mr. Brassard, but I am finding it hard to squeeze out a tear of sympathy for folk who might have to emit less carbon dioxide by downsizing a little.
A new Piper Cub or Cessna 172 cost well over $200,000, but neither are made in Canada. The only Canadian manufacturer is Bombardier, which manufactures corporate jets. If you are in the market for a private jet aircraft and cannot afford the new tax, once again, my tear ducts remain dry.
For boats, the proposed tax apparently only kicks in at $250,000. I wouldn’t know how to look up boat prices in that range. My boating is more in line with aluminum fishing boats powered by an outboard hanging on the transom. I’m pretty sure these run well below $30,000.
Mr. Brassard then makes a statement carefully phrased: “The Parliamentary Budget Officer estimates the tax, which is set to take effect Sept. 1 pending parliamentary approval, would bring in less than $200 million per year for the five years, but cause a $2.9-billion drop in sales of the vehicles over the same period.”
The correct way to say this is: “Over five years the tax would bring in less than $1 billion, but cause a $2.9-billion drop in sales of ultra-luxury goods.” Sounds far more reasonable that way.
People need to understand that multi-millionaires have many ways to avoid income tax. As ‘Oracle of Omaha’ Warren Buffett famously said years ago, he pays less tax than his secretary does. He then admitted this was fundamentally wrong.
Taxes on expenditures are harder to avoid. If you want to buy a Bentley Mulsanne, Mercedes Maybach or Maserati Quattroporte in Canada, I see no reason why you shouldn’t pay a little extra in tax. If the rich are not taxed, the rest of us must make up the shortfall.
That seems to be the Conservative theme. When they come into power, they cut taxes — it’s why people vote Tory. But we want good schools, a safe society, decently paved roads and hospitals capable of taking care of us should the need arise. When government cuts taxes, often increasing the deficit, the cost of today’s expenditures is kicked down the road — leaving our children and grandchildren with more debt.
I’m thinking of your government’s removal of the annual car registration fee and reduction of the fuel tax — just in time for the election. Shouldn’t drivers pay for the roads we use? How about subsidizing the price of electricity? But electricity must be paid for; we just pay by increasing debt.
Will you explain to your children and grandchildren, Mr. Brassard, that this debt was enlarged by your party and that you didn’t want to tax the wealthy on their luxury goods?
Peter Bursztyn
Barrie
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