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Generation Squeeze argues that the surtax could raise between $4.54 billion and $5.83 billion to go toward other housing projects. A think-tank funded in part by the Canada Mortgage Housing Corporation (CMHC) and National Housing Strategy is proposing that homes valued at more than $1 million be subjected to an annual deferrable surtax as part of a plan to tackle housing inequality. The proposed surtax rates would range from 0.2 per cent on homes valued between $1 million to $1.5 million and up to one per cent tax on homes valued at over $2 million. The tax would only apply to the value in excess of the $1 million threshold. Most Canadians, according to the report, would not have to pay anything. “The tax will apply only to the nine per cent of households living in the most valuable principal residences in the country — including 13 per cent of Ontario households, and 21 per cent of B.C. households,” it reads. Deferrable in this case would mean that the tax would not need to be paid until the home is sold or inherited. The report added that this design detail would be flexible to avoid imposing risks on those with limited incomes or wealth beyond their homes.

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