Speculation Tax: Tax and Housing Measures

speculation tax: Premier Kathleen Wynne said the new tax would not target immigrants, and a rebate would be available to foreigners who work in Ontario, those who subsequently get citizenship or permanent resident status and international students, according to Hamilton Spectator. With this tax, we are targeting people who aren't looking for a place to raise a family they're looking only for a quick profit or a safe place to park their money, Wynne said. The 15-per-cent non-resident speculation tax was among 16 housing measures the provincial government announced Thursday, which also included a promise to expand rent control, allow Toronto to impose a tax on vacant homes and use surplus provincial lands for affordable housing. Fears of a potential real estate market collapse as well as diminishing housing affordability have put increasing pressure on Wynne's Liberal government to take action, at a time when the average price of detached houses in the Greater Toronto Area has increased more than 30 per cent since last year. Some economists were skeptical Thursday about the impact the new tax on foreign speculators would have on soaring house prices, noting that all three levels of governments have admitted they lack housing market data. Wynne said the measures were designed to help people afford to rent or buy a home, brushing off a suggestion that the move was more about boosting her approval rating, which has recently plunged to just over 10 per cent, according to polls. (www.immigrantscanada.com). As reported in the news.