Wealth

Home renovation tax credit proposed by Sask. Party, NDP proposes wealth tax

The Saskatchewan Party is promising a new home renovation tax credit while the NDP said it would bring in a wealth tax as the election campaign came to Saskatoon on Wednesday.

Scott Moe, the leader of the Saskatchewan Party, said homeowners would be able to claim a 10.5 per cent tax credit on up to $20,000 of eligible renovations under his proposed tax credit.

“In this year’s budget, we reduced the PST on new home construction,” Moe said in a statement.

“We also want to provide a break to those who are fixing up their existing home. This new home renovation tax credit does just that.”

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Saskatchewan election tracker 2020

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The tax credit would include permanent additions to a homeowner’s primary residence but does not include items like furniture, appliances, hot tubs, tools or maintenance, Moe said

The cost of the program — which would run from Oct. 1, 2020, to Dec. 31, 2022 — is estimated by the Saskatchewan Party at $124 million.

The party said the maximum eligible amount allowed to be claimed to the end of 2021 is $11,000 and $9,000 for 2022.

Meanwhile, NDP Leader Ryan Meili said his proposed wealth tax would bring tax fairness to the province.

“We can do better — and ask the wealthiest amongst us to help ensure every family has access to the health care they need, when they need it,” Meili said in a statement.

“It’s time for a tax plan that puts people first — not the Sask. Party’s old boys’ club.”

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NDP faces uphill

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Some Wealth Gap Improvements Were Happening, Then the Recession Hit

It is no secret that there is a wealth gap in America. Many nations have these wealth gaps among different races and ethnicities, but they are more easily tracked in the most developed economy in the world. Before considering the impact of the 2020 recession, there was some good news and some bad news in the wealth gap and disparities among different races in America.

The Federal Reserve has released its 2019 Survey of Consumer Finances. While the broad report is vast and covers many topics, the Fed also broke down how those wealth disparities look by race and ethnicity. Since the most recent similar report in 2016, the Fed indicated that the typical white family has about eight times the wealth of the typical Black family and about five times the wealth of the typical Hispanic family.



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The Fed indicated that median wealth rose for all race and ethnicity groups between 2016 and 2019. During that time, the growth rates of median wealth rose by significantly higher rates for Black and Hispanic families. The media growth in wealth was 33% for Black families and 65% for Hispanic families. The median growth in wealth of white families rose by 3% in that time. The broad “other” category for families saw their median wealth wise by 8%.

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While this much faster growth in median wealth for black and Hispanic families was seen, the Fed also pointed out that this resulted in only modest wealth gap changes between white families and that of Black and Hispanic families. The white-Black gap in median wealth was $163,700 in 2016, and it was $164,100 in 2019. The white-Hispanic gap fell from $160,000 in 2016 to $152,100 in 2019.

In the 2019 Federal Reserve survey, white families had

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