Anxiety has chased Ontario finance minister Charles Sousa to write to the federal minister of finance, Bill Morneu. In his letter, he stated that there is a need to check the country’s housing investments based on speculations by altering the profits taxing system.
Except your property has a principle residence exemption, no matter who you are, you are charged with capital gain tax of 50 percent on every profits made on sale of a home. Now, his main focus here is that he is urging the minister to increase the tax beyond 50 percent, so as to chase away housing speculators.
Everyone is complaining about the hiked prices of houses in Toronto and Vancouver, and this is actually one of the major reasons why the prices are on a high side.
If the government takes due action, it would make it easier for first time buyers to comfortable buy a house, plus it would help generate tax revenue which could channeled into funding more affordable housing ideas.
He also stated that his major goal is be the voice of average Canadians who want to buy house but are shackled due to the high rate of housing prices, all thanks to house investment speculation. The only way, this would also be achievable is if borrowers and lenders maintain a balance during economic tides.
Minister Bill Morneau is set to deliver his speech on the profit taxing on Wednesday, for now all we can do is hope that he makes decisions that would benefit everyone.