A Modest Proposal
Things That Matter, By Dennis Rizzo
Being that the lifestyle, security, and well-being of Ontarians has been left to the whims of a few self-serving autocrats, it has become necessary to prepare a plan for the dissolution of status quo in the province. When in the course of human events a population faces the slings and arrows of neoconservative backsliding of health care, education, housing, and income equity, it becomes necessary for the majority to stand up to the few who profit from our community’s cumulative quandaries.
We who do the work, complete the tasks, plan the operations, and sustain the welfare of the corporate community must take a position of leadership. The captains of industry abandoned their moral compass in favour of endless, grasping consumption of the energy and productivity of the majority. It has evolved that all benefits from policy and investment gravitate to a few power-mongers and their sycophants.
Current Status
Our hyper-commercialized society continues to reward only investment in capital ventures. While it is proper for the investor to achieve a reasonable return for risk taken, it seems for certain circles there is no risk. There is no downside to an investment if one has the right connections, despite claims of a free market system.
A free market means that those who risk their cash should win or lose based on the viability and effectiveness of speculation. Yet, time and again, this has not been the case. Poor planning, spurious investment schemes, bank and government accounting tricks, and insider dealings have trashed any semblance of a free market. The rich do not suffer – they pass their losses on to the taxpayers and employees but not their gains. The game is rigged.
The taxpayer will bail out businesses when they fail to provide additional funds to prop up failing industry. The argument is always, but the jobs. Those with their hands in the government trough love to talk about the risk and reward cycle – but run to the taxpayers when their plans fall short. Meanwhile, the single parent family is castigated for using welfare, ODSP, or public assistance and public services are subjected to merciless cuts to save your money.
We have accepted the standard of living set for us by our social connections and the commodification of our existence. We spend hours at work to gain a few moments of leisure where we spend additional money paying for memberships or other entertainment. It is to the benefit of the well-off to keep those less well-off fighting among themselves. It is to the benefit of the autocrats to provide bread and circuses – as the Roman emperors did. Distractions. Diversions. Duplicity. We meekly follow the plan, replete with complaints but never with effective opposition.
Most wealth is held by relatively few households in Canada. The wealthiest (top 20% of the wealth distribution) accounted for almost two-thirds (64.7%) of Canada’s total net worth in the first quarter of 2025, averaging $3.3 million per household. This becomes even more disparate when we look at the top 1%.
Tax code is written for the benefit of those with significant disposable income and these influencers make the rules. There are some tax credits engaged to attain social goals, and offering these can make a difference in private philanthropy, however, there are many more situations where tax breaks and loopholes serve the sole purpose of minimizing public contribution by those with the ability to pay accountants to leverage their money and assets.
Well-off people stick their assets in non-taxable products then borrow against those to get the cash for daily activity. Neither is taxable and they may even be able to write off the interest they pay on those loans. When an asset is used as collateral for a loan that asset should become taxable “income” since it is effectively exactly that.
Your Tax Dollars At Work
Another issue rises regarding effective application of tax dollars. If taxes are levied for the benefit of the society as a whole, then the expenditure of those dollars should be reflected in the conditions of that society. Most citizens are comfortable paying taxes when the outcome results in improved lifestyle. This is evident in Scandinavian countries and elsewhere – taxes are high but expenses for basic needs, health care, schooling, and housing are covered 100% through taxes. The government provides essentials, allowing disposable income to be used for the individual.
Investing tax revenues into building physical and human capital provides a solid basis for economic development. Improved infrastructure benefits the whole population; water, sewers, communications, and lifestyle are affected by the condition of our civic systems. Commerce and industry benefit. It can be a win-win.
Economic development without commensurate social development is pointless. A strong economy and a weak population opens the doors to exploitation and draining the resilience of a country. Human capital is too often disregarded in the planning and operation of public systems.
Wise corporations know loyal, well-paid and supported employees are more productive. This leads to a more secure bottom line – though not always to immediate, monthly returns for investors. Therein lies the problem with greed capitalism. Where the goal of effort is simply to enrich a few, the effort has little or no value to the community as a whole.
Here’s an idea of what a progressive government might endorse:
Whereas: Our hyper-commercialized society continues to reward only investment in capital ventures while eschewing effective investment in human capital,
And, well-off people stick their assets in non-taxable products then borrow against those to get the cash for daily activity,
And, the tax code is written for the benefit of those with significant disposable income and these influencers make the rules,
And, the change required to resolve these issues calls for concerted, citizen action to address unfair taxation,
Therefore, let it be resolved, the citizens of Canada shall bring forth a government dedicated to supporting human capital, fair taxation, and beneficial commercial growth.
And, which supports investment of tax dollars for the benefit of the general population in infrastructure, health, defence, education, agriculture, and housing.
And, which immediately installs a fixed universal tax rate of 15% on all earned and unearned income, gross profit, actual value of assets or personal resources valued at over $10 million, and property, material goods, collateral, and personal monetary resources valued at over $20 million and tie this level to the CPI to allow for inflation/deflation.
Imagine The Effect Of Such A Proposal
Taxation as currently implemented looks at income and excuses non-cash assets. However, as noted, those with the capability and the assets borrow against those assets to have cash to live luxurious lives and pay little or nothing into the public coffers. Often their asset building efforts often benefit from the public actions they don’t pay into.
The implementation of a tax code that reflects this approach would replace Capital Gains with an asset-based tax. If properly administered and enforced this would remove most of the shelters used to avoid taxation and tie the maximum value to inflation ensuring it follows the rest of the economy.
Here is a list of assets (in U.S. dollars) held by Canadians that escape taxation at this time:
Changpeng Zhao – Binance Holdings – $105 billion
Stuart Hoegner – Tether, Ltd. – $24.7 billion
Joseph Tsai – Alibaba – $13 billion
Jim Pattison – Pattison Group – $12 billion
Sherry Brydson – Reuters/Globe&Mail – $11.5 billion
Tobi Lutke – Shopify – 10.7 billion
Alain Bouchard – Circle K/Couchard – $7.9 Billion
Ling Tang – AppLovin – $7.9 billion
Peter Gilgan – Mattamy Homes – $7.7 billion
Daryl Katz – Edmonton Oilers – $7.2 billion
Chris Olah – Arthropic – $7 billion
Chip Wilson – Lululemon Athletica Inc. – $6.5 billion
Garrett Camp – Uber – $5 billion
Lawrence Stroll – Aston Martin F1 team – $3.8 billion
Pierre Karl Péladeau – Quebecor Inc. – $3.4 billion
Larry Tanenbaum – MLSE chair – $2.8 billion
Brian Hill – Aritzia Inc. – $2.2 billion
Guy Laliberte – Cirque du Soliel – $1.7 billion
Michael Andlauer – Ottawa Senators – $1.3 billion
James Cameron – Filmmaker – $1.1 billion
Not discounting whether these people earned their money, or have legal rights to their assets, IF there was a wealth tax – even one time – the value of assets in Canadian dollars if taxed would net $312 billion. A Canadian government could impose 15% wealth tax on those assets held as of December 31 of a tax year, yielding $47 billion, and these billionaires would still be able to buy Animal Crackers at Loblaws without breaking their own personal budgets. Right now they pay nothing. This is in addition annual income taxes and may be a one-time assessment. This also does not include corporate profit taxation.
What would this revenue mean? Below are three major areas the Canadian government spent money on in 2024:
Elderly Care Transfers (CPP, OAS, etc.) – $81.1 Billion
Health Care Transfers – $52.1 Billion
Public Debt Payments – $46.5 Billion
$47 billion would go very nicely to taking some of the tax burden away from the rest of us, and this does not include revenue the government might get from those with assets valued between $20 million and $999 million. It would help keep the country functioning without more taxation on you.
(Images Supplied)
Dennis Rizzo joins SUNonline/Orillia as a columnist writing on big issues affecting ordinary Orillians. He is an ex-pat Yank from New Jersey. Orillia, Ontario. Canada is his adopted home, but he has brought along a degree of puckishness and hubris. Dennis spent more than 30 years working in the field of disabilities, with some side trips to marketing and management. He presented and keynoted for many conferences and served on a President’s advisory committee. Dennis is the author of several journal articles and booklets in the field of disabilities and work and five non-fiction books, including “A Brief History of Orillia – Ontario’s Sunshine City.” He recently republished a novel set in 1776 and a mystery set in 1860. He also enjoys sitting in on music sessions around town when he can.
