The following summarizes how we may assess the potential revenue of a Land Value Tax in Canada.
- In the 2010 Proposed Government of Canada Budget Based on Rent Recovery, the Henry George Foundation proposes a Land Value Levy of 5.5% of the total value of land in Canada. In 2009 the assessed market value of land in Canada was $1.8 trillion, thus the proposed levy could have generated $100 billion on new tax revenue at the time.
- From 2009 to the end of 2019, land value in Canada had increased to $4.472 trillion (see the National balance sheet and financial flow accounts, fourth quarter 2019 and the National Balance Sheet Accounts). Land values in Canada have increased significantly over the past decade.
- If a land value levy of 5.5% were to be applied to the 2019 land value across Canada, $248.2 billion in revenue could be generated.
- Using a rate that is 50% less than the one proposed by the Henry George Foundaiton (2.78%), would generate ****$124.1 billion in annual revenue. A 50% applicaiton of the proposed rate is applied becasue this assumes that this would be the federal portion, with the balance being made available for taxation by provincial and municipal jurisdictions.
Therefore, a land value levy could generate up to $248.3 billion in new revenue for the federal government.