Where can Canada find new tax streams?

There is no doubt that taxes are a fact of life for people living in Cornwall and indeed the whole of Canada. By collecting tax money from individuals, businesses and large corporations, the Canadian government is able to raise funds to divert back into the country. While nobody in Ontario really likes paying taxes, it is more palatable when you look at how they help the country prosper. Whether it is income tax, capital gains tax or estate taxes, the funds generated are vital to keep Canada in great shape moving ahead.

However, recent times have lead to Canada spending more money to tackle the global COVID-19 pandemic. This has lead to budget deficits in places like Ontario widening and left-leaning politicians looking for ways to raise more money to close them. The most obvious route to take is looking at new tax revenue streams to take advantage of. A new sales tax on digital big-tech platforms has already been delivered in July 2021, which could raise $6.5bn in revenue.

But what other new tax streams might the Canadian government think about moving into?

Focus on iGaming market

For many, the easiest and most obvious place to start is the iGaming sector in Canada. At present, it is illegal to operate an online casino in the country without a license, but fine for players in Canada to use offshore iGaming platforms. This means that the most popular internet casinos for Canadian players tend to be big name brands who operate offshore and outside of Canadian taxation laws. This leads to the country missing out on huge amounts of tax revenue which they could be collecting from offshore iGaming sites.

A good idea to tap into new tax streams could be to allow offshore sites easier access to the Canadian iGaming market and levy a tax on them to operate within the country’s borders officially. It would also make sense to raise taxes on any offshore iGaming site which caters to the Canadian market. This could bring in billions of extra dollars into the economy each year from iGaming taxes. In addition, big online casino brands officially operating within Canada could choose to set up a physical base in the country. This would create new jobs and result in more tax being collected each month from these new workers.

Hike up income tax

Although this is not a new tax stream as such, it is a way to access more money and new amounts of tax capital for the Canadian government. As far as political news in Ontario goes, it is fair to say this would not be popular with people — especially as many believe we all pay enough tax as it is!

Lowering tax thresholds or increasing taxation levels though is a viable way of bringing more cash into the country’s coffers. If the increase were not too harsh, many people may not actually mind paying a little more to secure the country’s economic future. While it would be a brave government who implemented this, it does stand out as an area that new taxation monies could be generated from.

Tax junk food

One new revenue stream lots of people have been calling for in recent years is taxation of junk food in Canada. This has not been implemented by Canada’s politicians as yet though — but could be a great way to not only raise more money for national coffers but also improve the nation’s health. It is thought that obesity is a big health issue in general across Canada and costs the country around $4bn each year.

By taxing junk food, Canada would not only generate extra revenue but also have larger funds to do more in the fight against obesity. In addition, taxing junk food would make it more expensive to buy and hopefully change people’s eating habits as a result.

New tax revenue streams crucial for Canada

All countries naturally look for new tax revenue streams to generate more cash each year. This is done to not only help safeguard the country’s economy but also to provide funds for public services and secure the country’s future. Canada is no different, but tough recent years have led to an increase in budget deficits in terms of spending. It is now crucial to close these deficits and ensure provinces like Ontario face a robust financial future. New tax revenue streams are a viable way to do this and the above might well be some options that the Canadian government looks at.

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