Proposes Discriminatory Legislation Via 2022 'Luxury Tax'

Next year, 2022, could be bad news for generation and other industries after being targeted by Canadian liberal legislators putting forward a luxury tax so that pilots and boat owners can 'pay their fair share.'

The Ottawa government is proposing to charge a luxury tax on new cars and personal aircraft priced over $100,000, and boats, for personal use, priced over $250,000.

Federal Finance Minister Chrystia Freeland says this is perfectly OK because various legislators expect pilots and boaters to make up for government shortcoming s due to the COVID crisis, even though Canada's response to the crisis has come under heavy criticism.

The tax will reportedly be calculated at the lesser of:

•  20 per cent of the value above threshold ($100,000 for cars and personal aircraft; $250,000 for boats) ; or
•  10 per cent of the full value of the luxury car, boat or personal aircraft.

The budget estimates that this boondoggle will boost federal revenues by $604 million over five years, starting in the 2021-2022 fiscal year -- but misses out on reporting how much damage will be done to the aviation industry, responsible for tens of thousands of Canadian jobs, as a result.

Much of this was proposed in 2019, and shut down at the time, but with recent tragedies so easily useable as the raison d'etre for the chance to raid the wallets of general aviation, they simply didn't seem able or wiling to let a crisis go to waste.

Indeed, Freeland smugly states, “If you’ve been lucky enough, or smart enough, or hard-working enough, to afford to spend $100,000 on a car, or $250,000 on a boat—congratulations! And thank you for contributing a little bit of that good fortune to help heal the wounds of COVID and invest in our future collective prosperity.”

She makes no mention of the sacrifices aviators make to fly, the difficulty many of us have in affording same, or how many flyers she may drive from the sky and the industry she may decimate... worse, though, is the possibility that Freeland may give the US government similar ideas. Yeesh...

More info to follow...

FMI: https://pm.gc.ca/en/cabinet/honourable-chrystia-freeland