Regina-Wascana MP Michael Kram is lashing out about the reports of the Liberal government conducting research on implementing a tax on home equity.
Home equity is considered as one of the largest sources of retirement savings and investments for most Canadians.
Kram feels the move would create a lot of frustration. “I think people want certainty when they plan for their retirement so that they know that the equity they have built up for their homes will not be subject to this new tax and makes it difficult for people to plan for their retirements when the Liberals keep moving the goalposts.”
The Liberal government have previously funded a study into the policy proposal but have denied that they were taking it seriously.
It’s speculated that the rumored tax on home equity would come in effect for homes that are valued over $1 million, Kram says that number may seem high currently, but adds that could change. “As we’ve seen over the last few years the price of homes keep going up, up and up, right now if your home is only worth half of a million dollars, in a few years it might be past a million dollars, people might be hit with the tax that way.”
One of the main concerns for Kram about the possibility of a tax on home equity is that citizens will have to start rethinking their retirement plans. “Some people maximize their RRSPs, some people maximize their TSFAs, some people invest in a home and when they sell their home, they retire and that’s their nest egg, it creates an amount of uncertainty when we don’t know what the Liberals will tax next.”
With parliament resuming in Ottawa, Kram says this is an issue he plans on presenting to the house on Monday.
