This presentation looks at issues facing when it comes to imposing a wealth tax

1. DOES THE WORLD
NEED A WEALTH TAX
Paul Young CPA CGA
June 20, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process
Changes
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain
Management
• Academia – Advance
Accounting, Public Finance and
Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• How is wealth created?
• Top 1% and Canada (Taxes)
• Tax Fairness / Canada
• Highest Tax / Country
• Pensions Funds and Stock Market
• Tax Competitiveness
• What needs to happen

4. HOW IS
WEALTH
CREATED
• People invest in companies – share purchases -
https://www.bloomberg.com/news/articles/2020-06-15/asia-stocks-to-gain-after-fed-
ignites-risk-on-mood-markets-wrap
• People buy property / Rental Property -
https://www.slideshare.net/paulyoungcga/canada-housing-market-latest-analysis-may-
2020
• People start businesses - https://www.slideshare.net/paulyoungcga/canada-whats-
next-for-small-business
• People inherit money - https://taxfoundation.org/estate-and-inheritance-taxes-around-
world/
• Win the lottery - https://www.lottoland.asia/magazine/9-countries-where-you-do-not-
need-to-pay-tax-on-lottery-winning.html
• Innovation - https://www.slideshare.net/paulyoungcga/2019-election-innovation-and-
rd-canada-2014-to-2017
• Professional Athlete, Actors and Actresses -
https://www.statista.com/statistics/675120/average-sports-salaries-by-league/ or
https://www.cnbc.com/2020/02/07/the-10-highest-paid-actors-and-actresses-of-
2019.html
• Choose a career that has upsell opportunities in terms of salary and benefits, i.e.
engineer, lawyer, doctor - https://www.foxbusiness.com/lifestyle/the-10-highest-
paying-jobs-in-the-world

5. TOP 1%
AND TAXES
Source -
https://www150.statcan.gc.c
a/t1/tbl1/en/tv.action?pid=1
110005501

6. TAX FAIRNESS / CANADA
Taxing high income earners has not work in the past.
There are ways to fix tax fairness by re-working the ITA, closing down tax havens, Technology tax, revisiting eCommerce taxing, etc. -
https://www.slideshare.net/paulyoungcga/2019-election-who-do-your-trust-more-when-it-comes-to-tax-fairness
If Canada also became more competitive it could also bring back FDI and be a world leader in sustainable natural resources -
https://www.slideshare.net/paulyoungcga/have-the-liberal-party-of-canada-supported-the-natural-resources-sector
https://www.slideshare.net/paulyoungcga/world-needs-to-look-at-tax-fairness (October 2019)
We do not need a wealth tax!
We do need the following
1. Refocus on supply chain
2. Transforming of Government
Source - https://www.slideshare.net/paulyoungcga/how-best-to-reshore-supply-chains
Source - https://www.slideshare.net/paulyoungcga/canada-municipal-and-local-government-whats-needs-to-be-done
Source - https://www.slideshare.net/paulyoungcga/world-needs-to-look-at-tax-fairness

7. HIGHEST TAX JURISDICTION / COUNTRY
Source - https://www.weforum.org/agenda/2019/11/income-tax-around-the-
world/
• Scandinavia has some highest cost of living in the world
- https://www.businessinsider.com/most-expensive-
countries-to-live-in-ranked#6-denmark-20
• USA wealth distribution - https://www.urban.org/policy-
centers/cross-center-initiatives/state-and-local-finance-
initiative/state-and-local-backgrounders/public-
welfare-expenditures
• Scandinavia have strong, but expensive government
models - http://statisticstimes.com/ranking/democracy-
index.php
• Consumption Taxes - https://www.retail-insight-
network.com/features/highest-sales-tax/
• Revamping Tax codes -
https://www.fool.com/retirement/2019/07/21/you-
wont-believe-how-complex-our-tax-system-is.aspx or
https://www.slideshare.net/paulyoungcga/designing-
social-programs-and-tax-fairness-policies

8. STOCK MARKET AND
PENSION FUNDS
• Role of the Stock Market – “The stock market refers to the
collection of markets and exchanges where regular
activities of buying, selling, and issuance of shares of
publicly-held companies take place. Such financial activities
are conducted through institutionalized formal exchanges
or over-the-counter (OTC) marketplaces which operate
under a defined set of regulations. There can be multiple
stock trading venues in a country or a region which allow
transactions in stocks and other forms of securities.
”https://www.investopedia.com/terms/s/stockmarket.asp
• Pension funds have issues with solvency -
https://www.slideshare.net/paulyoungcga/pension-plans-
continue-face-solvency-issues
• Pension Funds
• Real State
• Money-market
• Company ownership
• Source -
https://www.investopedia.com/articles/credit-loans-
mortgages/090116/what-do-pension-funds-typically-
invest.asp

9. TAX COMPETITIVENESS
Source - https://taxfoundation.org/publications/international-tax-competitiveness-index/

10. FAILURE OF
WEALTH
TAXES
• “Normally progressives like to point to Europe for policy success.
Not this time. The experiment with the wealth tax in Europe was a
failure in many countries. France's wealth tax contributed to the
exodus of an estimated 42,000 millionaires between 2000 and
2012, among other problems. Only last year, French president
Emmanuel Macron killed it. In 1990, twelve countries in Europe had
a wealth tax. Today, there are only three: Norway, Spain, and
Switzerland. According to reports by the OECD and others, there
were some clear themes with the policy: it was expensive to
administer, it was hard on people with lots of assets but little cash,
it distorted saving and investment decisions, it pushed the rich and
their money out of the taxing countries—and, perhaps worst of all,
it didn't raise much revenue. ”Source -
https://www.npr.org/sections/money/2019/02/26/698057356/if-a-
wealth-tax-is-such-a-good-idea-why-did-europe-kill-theirs
• Wealth taxes have failed around the world -
https://www.wsj.com/articles/where-wealth-taxes-failed-
11572910833
• You cannot tax someone to prosperity -
https://fee.org/articles/why-a-wealth-tax-can-t-solve-our-
problems/

11. WHAT’S NEEDS TO BE DONE
• Revamping the tax code including shutting down tax havens - https://www.slideshare.net/paulyoungcga/does-taxing-the-top-1-
generate-the-tax-dollars
• Reforming government as part of making government more efficient and effective -
https://www.slideshare.net/paulyoungcga/transforming-the-public-sector-canada
• Focusing policies that support economic growth - https://www.slideshare.net/paulyoungcga/how-best-to-reshore-supply-chains or
https://www.slideshare.net/paulyoungcga/whats-next-for-canada-post-covid19
• Fixing issues with protectionism including revamping the WTO - https://www.slideshare.net/paulyoungcga/canada-merchandise-trade-
april-2020
• More emphasis on education and training - https://www.slideshare.net/paulyoungcga/human-capital-skills-trades-and-skills-
development
• Reforming United Nations and its various agencies - https://www.slideshare.net/paulyoungcga/reforming-both-the-united-nations-
and-who
• Focusing on improving areas like infrastructure, farming, urban planning, water and forestry management -
https://www.slideshare.net/paulyoungcga/the-real-truth-about-emissions-and-carbon-taxation or
https://www.slideshare.net/paulyoungcga/canada-how-are-farmers-doing-in-financial-in-canada

12. OTHER
SOURCES
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel
free to review my material
on
https://www.udemy.com/
(search Paul Young CPA
CGA