Why Liberal-NDP Partnership Raises Taxing Questions
Advisors express concerns about the process and ramifications of latest news from Ottawa
Noelle Boughton • Mar 24, 2022
Financial advisors reacted with concern and a degree of nervousness to the potential impact the new federal Liberal-NDP partnership would have on their industry and clients.
The political pacts promises a new dental care program for low-income Canadians, progress toward a universal national pharmacare program, and more affordable housing and climate change initiatives, saying it will finance part of that with tax changes on financial institutions that made strong profits during the pandemic.
“Hindsight being 20/20, it’s easy to connect the dots between the election that we had in September to bleed out the campaign coffers of the NDP and put them into financial hardship and having them in a situation where their party is backstopping the federal Liberal government now,”
“I think that was well thought out ahead of time.”
Salzer noted the federal Liberals doubled the total federal debt in the last two years after it took 30 years to pay it down. He was also sceptical that many of the promises would amount to anything because, he said, “what governments in Canada tend to do is over promise and under deliver.
“They talk a great game, but nothing’s ever done. The money disappears and that is left for Canadian taxpayers today and in the future to pay,” he added.
Salzer said entrepreneurs and family enterprises he knows say they can’t run a business in this environment because there’s too much uncertainty, so they’re slowly fleeing Canada.
“It’s a trend. I don’t think it’s going to stop. It’s only going to get worse and, as a Canadian and a business owner, I’m very, very concerned,” said Salzer.
As for taxing the financial industry, he said he expects any additional taxes on Canadian banks and insurance companies will be passed on to Canadian consumers. Meanwhile, gas and heating oil taxes could increase, and tax planning could become more critical.
Arthur Salzer is CEO and Co-Chief Investment Officer at Northland Wealth Management.
The complete article originally appeared on Wealthprofessional.ca