, 11 tweets, 6 min read Read on Twitter
Good to see @theJagmeetSingh put some policy ideas on the table about housing. Read up on it here:


Three prongs:
1) target 500K new homes.
2) eliminate GST on affordable homes
3) double new homebuyers tax credit.

Some reactions.....

My reactions:

1) 500K new homes?

Good to have a target. Better to have a plan. A target is not a plan.

Also, read @GordShank 's thread. The new Burnaby mayor was elected on a platform of *slowing down* new development because of 'renovictions'....

My reactions

2) removing GST?

As @KelvinGawley notes below, the LPC govt had promised this, but then decided other options worked better.

I'd want to ask why @theJagmeetSingh thinks the govt was wrong about this. They may be wrong! But that's my Q.

My reactions:

3) Expand the homebuyers amount tax credit?

<eyeroll emoji>

Ok, this is income tax and in my wheelhouse. Let me explain why I don't like this.
The Homebuyers Amount was introduced in 2009.

It's a "$5000" tax credit, but since the credit rate is 15% that actually means $750 off your taxes.

The @theJagmeetSingh proposal is to double this to $10K-->$1500.

Two problems with Homebuyers Amount as an affordability tool

a) it's a *nonrefundable* tax credit, so you only get the value if you're a taxable filer. Around 8.6million of the 26.5 million taxfilers in Canada don't owe any taxes, so this credit means nothing to low income folks
Two problems with Homebuyers Amount as affordability tool

b) it's a demand-side measure. If all new homebuyers have $750 more in their pockets and supply is constrained, guess what happens to prices? Prices get bid up. Existing landowners benefit more than new buyers. No thnx!
Imagine we did a policy version of the 'Pepsi Challenge' (yes I'm old) with this housing proposal. You have to guess what political party came up with this housing plan:

1) vague target; no details
2) tax cut for builders
3) tax cut for middle earners

Me, I'd say 'centre-right'
I'm just glad to see some policy discussion coming out in this #BurnabySouth by-election.

More, please!

And also, backgrounder kitty would always be happier with a backgrounder. None that I see here....
Let me answer a version of this Q.

Imagine AOC were designing Canadian housing/tax policy. What would she think of the package offered by @theJagmeetSingh ?

I'd say she wouldn't like it.

What would she offer instead that was hard left? Let me see...

@theJagmeetSingh What would an aggressively left tax package for housing look like?

(I don't endorse this.)

1. Don't double the homebuyers credit. Cancel the damn thing. + 125MM

2. Eliminate capital gains exemption for principal residences. +6.6B.

3. Use the money to build social housing.
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