The below highlights some of the tax measures proposed by the New Democratic Party of Canada for the 2021 Canadian federal election that will be held on September 20, 2021. The purpose of the below article is to summarize and outline the different tax measures published by the political parties in their election platforms in an impartial manner. The views and measures expressed herein are those of the New Democratic Party of Canada , they do not necessarily represent our views. 

Tax Measures for Businesses 

Increase the Capital Gains Tax Inclusion Rate From 50% To 75% 

The NDP plan to increase the capital gains inclusion rate from 50% to 75%. 

Increase Federal Corporate Tax Rate from 15% to 18% 

The NDP will roll back the Conservatives’ corporate income tax cuts by three percentage points to 2010 levels. The small business tax rate will be maintained at its current level. In Ontario this will increase the general corporate tax rate from 26.5% to 29.5%.  

Mandate Large Businesses to Invest in Job Training 

The NDP will require large employers to spend at least 1% of payroll on training for their employees annually.  

Extend Wage and Rent Subsidies Until Businesses Can Fully Reopen 

Wage and rent subsidies will continue until small businesses are able to fully reopen.  

Long-Term Hiring Bonus from the Government 

The NDP plan to implement a long-term hiring bonus such that the government pays the employer portion of EI and CPP for new or rehired staff.  

15% COVID-19 Excess Profit Tax on Large Corporations 

An additional 15% tax on large corporate windfall profits during the pandemic. The NDP will put particular emphasis on large corporations that utilized COVID-19 wage subsidies for executive bonuses, executed stock buy-backs or shareholder dividends.  

Close Tax Loopholes for Large Corporations  

Companies compelled to prove the economic reason for offshore transactions, and transparency is expected on the taxes paid by large corporations. The NDP also proposes increased compliance funding to the CRA’s enforcement section dealing with international and corporate taxation.  

Pension Protection Measures  

Companies will be prevented from paying out dividends and bonuses when pensions are under-funded. A mandatory, industry-financed pension insurance program will be implemented.  

Tax Internet Giants 

The NDP plans to ensure that internet giants like Facebook, Google and Amazon pay their fair share of taxes. 

Tax Measures for Individuals and Families 

Increase the Capital Gains Tax Inclusion Rate From 50% To 75% 

The NDP plans to increase the capital gains inclusion rate from 50% to 75% 

Increase the Top Marginal Tax Rate by 2% 

The NDP plans to increase Top marginal tax rate increased by two points. The top rate will increase from 53.53% to 55.53% in Ontario.  

Luxury Goods Tax 

Introduction of luxury goods tax on items such as yachts and private jets. 

Wealth Tax on Multi-Millionaires 

The NDP plans to introduce a wealth tax on high-net-worth individuals (deemed the very richest multi-millionaires by the NDP).  

Guaranteed Livable Income  

The NDP plan to build out a system where all Canadians have a basic minimum living income. They plan to start first with seniors and those with disabilities.  

Increase Minimum Wage to $20 per hour  

The NDP plans to put in place a living federal minimum wage starting at $15 an hour and rising to $20 an hour, indexed to the cost of living. 

Minimum EI of $2,000 per month 

Implement a low-income supplement. The NDP states that no one relying on EI regular or special benefits to stay afloat will receive less than $2,000 a month.  

Make EI System More Flexible  

The NDP also proposes to expand EI eligibility to individuals who necessary childcare or to protect their health or the health of immunocompromised family members. Extend sickness benefits from 15 to 50 weeks, and create a pilot project to allow workers with episodic illnesses and disabilities to access EI sickness benefits a day at a time, as they need them. The “Extra Five Weeks” pilot project will be reintroduced and made permanent. The NDP states that this will bridge the gap between the end of EI and the start of seasonal work.  

A new parental leave policy has been proposed to allow parents to take shorter paternal leave at a higher replacement rate. Self-employed workers will be allowed to opt into parental benefits at any time before taking the leave, and move to double leave for parents of multiples.  

The NDP also proposes to expand EI eligibility to allow workers who quit their jobs to go to school. Expansion of options for workers in designated sectors and regions to take EI funded training in advance of losing a job.   

Incentives for Individuals to Purchase Zero-Emissions Vehicles 

The NDP plans to waive federal sales tax on zero-emissions vehicle purchases, and offer incentives up to $15,000 per family for made-in-Canada vehicles.  

Create the Pension Advisory Commission 

Commission to develop a long-term plan to enhance Old Age Security, boost the Guaranteed Income Supplement, and strengthen the Canada Pension Plan. Automatic enrollment in OAS and GIS will be retroactive.  

Make the Canada Caregiver Tax Credit Refundable 

The NDP plans to make the Canada Caregiver Tax Credit refundable. The NDP estimates that thousands of dollars will be provided to the most low-income caregivers. Caregiver allowance to be expanded for veterans.  

$10 a day Child-Care 

The NDP plans to work immediately with the provinces to build a universal, $10 a day child-care system that’s there for all parents. 

Remove Interest and Forgive up to $20,000 of Student Loans 

New Democrats plan to remove interest from federal student loans and introduce a targeted debt forgiveness program for graduates that will forgive up to $20,000 in student debt. In the future, the NDP plans to move away from loans and permanently double non-repayable Canada Student Grants. 

Other Measures 

Measures to Combat Hot Housing Market 

Encourage the Construction of Housing Projects 

The NDP plans to streamline the application process and help communities get the expertise and assistance they need to get projects off the ground. 

No GST on New Affordable Rental Units 

The NDP plans to waive for the federal portion of the GST/HST on the construction of new affordable rental units. 

Double the Home Buyer’s Tax Credit 

The NDP plan to double the Home Buyer’s Tax Credit to $1,500.  

20% Foreign Buyer Tax to Lower Foreign Speculation 

Introduce a 20% Foreign Buyer’s tax on the sale of homes to individuals who aren’t Canadian citizens or permanent residents.  

Reintroduce 30-year Terms to CMHC Insured Mortgages 

The NDP plans to reintroduce 30-year terms to CMHC insured mortgages on entry-level homes for first time home buyers. This will allow for smaller monthly payments. 

Public Beneficial Ownership Registry 

The NDP plans to work with provinces to create a public beneficial ownership registry to increase transparency about who owns properties, and require reporting of suspicious transactions in order to help find and stop money laundering.