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Decentralized Democracy

House Hansard - 43

44th Parl. 1st Sess.
March 22, 2022 10:00AM
Context: House Hansard - 43 - Mar/22/22
Mr. Mark Gerretsen (Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate), Lib.)
Mr. Speaker, I want to congratulate the member on the introduction of his private member's bill. It is always a great opportunity for members to bring forward policy ideas that they are individually extremely passionate about, and I am glad to see that this member has had that opportunity. I wanted to address one thing that I heard the member say in his speech. If I heard him correctly, and I may have gotten it wrong and he can correct me if I did, he said that the cost of this would be approximately $50 million. My understanding from the PBO is that it would be over $750 million with the possibility of getting close to $1 billion. That is my understanding of what the PBO had reported on it. Can the member either tell me that I misheard him or tell me what I and the PBO might be missing?
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Context: House Hansard - 43 - Mar/22/22
Mr. Marty Morantz
Mr. Speaker, I would like to thank my hon. colleague for the question. I said the $50 million to $60 million was the capital gains tax cost. To the extent that there are incremental donations, let us say it is $200 million a year, there would also be tax receipts associated with that. That analysis was done by the PBO as well, and I think it is in the range of another $50 million or $60 million a year. It is something like that, to the extent that there are incremental donations triggered by the incentivization of giving by the relief of the capital gains tax. The PBO numbers are over a period of time. The annualized cost is roughly $120 million or $130 million, and if we take that over a five-year horizon, that is how we get to the $700 million to $800 million cost. I would point out that the tax cost in all cases, on an annualized basis or over five years, is less than the actual contributions that charities would receive.
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