The Green Party of Canada has outlined a tax plan aimed at promoting economic fairness and supporting low- and middle-income Canadians. Key components of their plan include:
Increasing the Basic Personal Amount
The Greens propose raising the federal BPA from approximately $15,705 to $40,000. This change would allow individuals to earn up to $40,000 annually without paying federal income tax, providing up to $3,675 in tax relief for millions of Canadians.
Support for Low-Income Canadians
Recognizing that over a third of Canadians earn under $40,000 yearly, the Green Party aims to implement tax reforms that benefit those with the lowest incomes. This approach contrasts with proposals that include tax cuts for large corporations.
Addressing Capital Gains Tax Adjustments
The Greens have expressed disappointment with decisions to cancel adjustments to the capital gains tax, viewing such moves as favoring the wealthiest Canadians and contributing to growing inequalities.
These initiatives reflect the Green Party’s commitment to creating a fairer tax system that alleviates financial burdens on average Canadians while ensuring that wealthier individuals and large corporations contribute their fair share.
What Is the Green Party’s Wealth Tax?
The Green Party is proposing an annual tax on the ultra-wealthy, targeting only households with net worths above $10 million. This is not a tax on income—it’s a tax on accumulated wealth.
What does it mean to "Add a Financial Transactions Tax on high-frequency trades"?
The Green Party proposes adding a small tax on financial transactions—specifically those made by high-frequency traders (HFTs). These are massive firms that use algorithms to buy and sell stocks or commodities in fractions of a second, often thousands of times per day.
The goal of this tax is twofold:
Curb harmful speculation
High-frequency trading doesn’t add real value to the economy—instead, it can destabilize markets and make things more volatile. A small tax (for example, 0.5% or less) discourages this kind of risky, rapid-fire trading.
Raise public revenue
Even a tiny tax on billions of dollars in trades could generate billions in new revenue. This money could then fund public priorities like housing, education, and health care—without raising taxes on working people.
In short: It’s a way to make the financial sector pay its fair share while making our markets healthier and more stable.
How It Works?
The tax would apply to total net wealth (assets minus liabilities) as follows:
1% on wealth over $10 million and up to $50 million
2% on wealth over $50 million and up to $100 million
3% on wealth over $100 million
For example, a household worth $60 million would pay:
1% on the first $40 million over the $10M threshold = $400,000
2% on the $10 million between $50M–$60M = $200,000
Total: $600,000/year
Who Pays?
Only Canada’s richest households—roughly the top 0.5%—would be affected. No one with under $10 million in net wealth pays a cent.
How Much Will It Raise?
Despite expected avoidance behaviors (factoring in a conservative 35% reduction in reported net worth), this measure would bring in:
- $22.8 billion in 2025–2026
- $23.1 billion in 2026–2027
- Increasing yearly to $26.8 billion by 2029–2030
Total revenue over 5 years: $121.5 billion
That’s funding we can use for:
- Free post-secondary tuition
- National housing strategy
- Climate resilience infrastructure
Dental and pharmacare expansion
Why Now?
Canada is seeing a historic rise in wealth inequality. The richest 1% now control over 25% of the country’s wealth. This tax ensures that extreme wealth contributes fairly to the public good—especially as everyday Canadians struggle with affordability.
What About Loopholes?
The plan assumes that wealthy households will attempt to reduce their exposure—by hiding wealth or shifting assets. To account for this, the projections already exclude 35% of total taxable wealth from the base. Additionally:
- Administrative costs are estimated at just 2% of revenue
- Strong reporting rules and enforcement will be key
This isn’t about punishing success—it’s about ensuring fairness. While working- and middle-class families pay their taxes year after year, the ultra-wealthy often accumulate millions with minimal contribution. It’s time to level the playing field.
