For those of you who don’t know, the C. D. Howe Institute is a Canadian right wing think tank. That is the official story. But when the results are predetermined (right wing) it’s not a think tank, more like a spin tank. Ontario might add taxes to the mega rich in the coming weeks which spawned the institute’s “musings”.
First of all the institute’s brazen product is a threat to the government. They are saying if you do this, in a few year’s time you will make less in taxes than you do now. This is really an unbelievable statement so let’s look closer.
This article I have linked to has one key paragraph on how the revolt is supposed to go:
“Some [wealthy individuals] may choose to substitute more leisure for overtime work, to migrate to a lower tax jurisdiction, to engage in more aggressive tax planning, or to modify forms and timing of compensation, use of tax deductions, and tax avoidance or evasion,” he writes.
Let’s pick on the first two points. Substituting more leisure for overtime work would result in more jobs for the rest of us. And migrating to a lower tax jurisdiction also results in more jobs for the rest of us. And these jobs pay super handsomely. Else the mega rich wouldn’t do them.
Sure the mega rich can engage in more aggressive tax planning or modify forms and timing of compensation. It’s true that the rich are flexible. But so too is the government and tax law. The government can remove some of its loopholes in taxes at any point.
As for using tax deductions, that simply means more charities will get the money. With charities brimming in new found money, this takes some of the strain off social programs, meaning the government will need less.
Finally there is tax avoidance or evasion. You’ve seen the problems organized crime has hiding its money. This is true of any large amount of money. The mega rich will find they have problems and if many take this avenue, many will end up in jail.
Further down in the linked article, they give stats about how the mega rich are paying what is supposed to be more than their fair share. What I find shocking about these stats is that the mega rich make this much more than the rest of us do. They can easily pay a small amount more.
The C. D. Howe Institute will undoubtedly deny they are signalling the mega rich how to revolt. After all, counselling to commit a crime (tax evasion!) is against the law. But the mega rich can easily read between the lines. I just wish there were a left wing shadow institute to call the C. D. Howe Institute on its ridiculous $#!+.