Finance Department report finds luxury tax will lead to between 400 and 870 job losses

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Analysis by the Finance Department also says the new tax could lower total Canadian GDP by between $58-million and $125-million

A Finance Department report on the projected impact of the new federal luxury tax says it could lead to between 400 and 870 job losses – a finding auto, boating and aviation industry groups argue confirms their warning that the policy will hurt Canadian workers.

The analysis by the Finance Department, which provides research and policy support to Finance Minister Chrystia Freeland, also says the new tax could lower total Canadian GDP by between $58-million and $125-million. The report describes this as equivalent to up to 0.005 per cent of GDP, adding that is “a negligible share, although this entirely reflects the very narrow and specific base to which this tax is applied.

Broken down by sector, the report says the vehicles market would be hardest hit in terms of reduced sales, with an impact of between $125.2-million and $210.2-million. Vessels would be next, with reduced sales of between $32.7-million and $102.9-million, followed by aircraft at between $13.5-milion and $28.7-million.released in May, 2022, by Parliamentary Budget Officer Yves Giroux.

“The analysis provided by Finance Canada on the impact of the Federal Luxury Tax makes clear that automotive retailers and their employees will be hurt by the tax – not wealthy Canadians,” he said in a statement. “Even this report’s minimizing approach makes clear hundreds of local dealership jobs will be lost and tens of millions of economic growth will be lost.”in 2021 by economists Jack Mintz and Fred O’Riordan that concluded the tax would lead to $90.

released last year by the Aerospace Industries Association of Canada, which warned the tax would cause at least 2,000 direct job losses in that sector alone. The department’s report acknowledges that estimating a behavioural response is especially challenging when it comes to aircraft.

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Oh no...870 job losses. These are jobs that relate to people working for rich people who don't pay taxes. Taxes could be used to create 2000 jobs.

And

I'm smelling a very biased report done with very shoddy methodology. TaxTheRich

It’s ok, they’ll create another 1,000 jobs and a few dozen high priced consultants to manage this tax. Who needs private sector jobs anyway

Oh well /s!!

Canada is broken.....

They don’t want Canadians to have nice things.

I thought we had a labour shortage

Then they can use the money and employ those people and turn a profit. Thanks.

hopefully Freezelands

But I’m sure those executives have some kind of skill that will help them get a real job.

globepolitics And who are the bad people that the Libs are hitting with this tax? Mostly middle class Cdns who worked hard and saved all their lives for a modest retirement yacht or rv Great policy - kill jobs, lower tax revenue, and make life just a bit more miserable for for many

I’m certainly not buying a new vehicle, and partly it’s due to this tax.

Got forbid Gov should spend wisely

We often forget the people with all the money many seem to resent and want to punish for their success are often the ones who provide much needed employment for many of us!!

Quit flying our jets do zoom if our leaders stay home that would save 1000 minimum wage jobs

For those who don’t understand. As an example: A car over $100k or a boat over 250k has a luxury tax slapped on it. This deters buyers, which affects workers negatively, like salespeople , service people, receptionists, cleaners etc and the business!This tax is not a good tax.

Just 400...hmm...sounds appropriate to say the benefits outweight the risks on that then...maybe we should put a mandate on it and lock their accounts if the protest the tax...

Gotta love the Liberals, spend lie,and take

Take back Canada.

Liberal economics

Imagine if Canada had a Federal or Provincial NDP government, the Globe and Mail would become FoxNews 😤😡 So sad, too bad, for the 200K vintage sports car. 🏎️

Anything to appease to the anti-economic growth ideologies of the Liberal party. Smh.

Hopefully they are all politicians jobs

Such bone stupid populism. There is no reason somebody who buys a $100,000 car deserves to be taxed more than somebody who buys two $50,000 cars. Except crass Liberal politics to stoke envy.

Like clockwork, whenever government discusses taxing the rich the corporate media puts up hysterical headlines about imminent collapse of society! 400 jobs? Postmedia alone cuts that every quarter.

Then tax the rich directly. Or close their offshore tax dodging loopholes.

Add that to the millions of jobs lost with the green transition plan.

cool, less inflation then

Those jobs shouldn't exist then...

Their solution to everything is more tax

Nobody's ever going to accuse Liberals of being Warren Buffet. This party spends $1 to get back a nickel. Then pats itself on the back.

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