Owners of Vancouver's most expensive homes pay very little tax, UBC study finds
A new study from the University of British Columbia has found owners of the most expensive properties in Vancouver are paying very little income tax.
Researchers found the top five per cent of homes as of 2018 had a median value of $3.7 million, but the median income tax paid by the homeowners was $15,800 – 0.42 per cent of their home’s value.
In contrast, owners of Vancouver homes with a median value of $984,000 – less than a quarter of the top tier – paid $12,500 in income tax, which is 1.37 per cent of their home’s value.
Study co-author Thomas Davidoff, an associate professor in UBC’s Sauder School of Business, called the findings “outrageous.”
“There are lots of people who pay a ton of income tax who own expensive homes, but there's too many people who are clearly affluent who don't contribute much to taxation in British Columbia and that's a failure of the progressivity of our taxes," said Davidoff.
He said it’s possible some owners are not paying as much income tax because they may have inherited the wealth, or they’ve brought money from overseas.
He suggests the city should implement a minimum income tax based on property value to level the playing field.
"What we've proposed is people have to pay an income tax of one per cent of their property value," Davidoff said.
"I think it's a pretty widely held belief that people with the greatest ability to pay should be those who pay the most taxes. There's people who disagree with that. There are people who think, ‘No, your ability to pay should be unrelated to how much tax you pay.' But generally in Canada, we seem to, based on income taxation, believe in progressive taxation.”
He hopes an equal tax for all will help fix what he describes as a weak relationship between income tax and property value in the city.
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.