in si de ha lto n. co m O ak vi lle B ea ve r | T hu rs da y, A ug us t 16 ,2 01 8 | 14 DISABILITY BENEFITS DENIED/TERMINATED? WE PROTECT YOUR RIGHT TO RECEIVE DISABILITY BENEFITS CONTACT US FOR A FREE CASE EVALUATION 905.337.9568 4-1464 CORNWALL RD., OAKVILLE Sofas • Chairs • Headboards • Throw Pillows 11-2345Wyecroft Road,Oakville • 905.616.3156 • info@baiers.ca 1000's of Designer fabrics to choose Since 1967 upholstery & design www.baiers.ca Call uS foran aPPoinTmenT 2018 nominee! WHERE IS YOUR LITTLE ONE PLAYING HOCKEY THIS SEASON? house league defense clinic shoot 2 score introduction to hockey house league skills clinic rep defense clinic rep skills clinic rising stars development league Learn to Skate AGES 2.5 - ADULT FALL REGISTRATION NOW OPEN FOR ALL PROGRAMS David Macdonald, senior economist for the Canadian Centre for Policy Alterna- tives, and author of the report Born to Win - Wealth Concen- tration in Canada since 1999, thinks Canada should have an inheritance tax. Currently in Canada taxes are paid before an estate is distributed to its inheritors. For example, there is an as-For example, there is an as-F sumed deemed disposition of assets at death that might trigger capital gains to be paid by the estate. Also any RRSP or RRIF as- sets are added to income in the year of death and are taxed as personal income. There is probate paid on es- tate assets, but the percent- age charged is extremely low. However, there is not a separate inheritance tax. This is a problem according to Macdonald's report, re- leased in late July. Canada is the only G7 country that does not have a federal inheritance tax.federal inheritance tax.f MacDonald argues the need for an inheritance tax because of the growing ineq- uity of wealth between the haves and everybody else. According to Statistics Canada, the 87 wealthiest families in Canada are worthfamilies in Canada are worthf almost $3 billion each. The wealthiest families' assets have grown 37 per cent from 2012 to 2016. Just over half of theJust over half of theJ wealthiest families in Canada have received their wealth from previous generations.from previous generations.f Just under half of those fami-Just under half of those fami-J lies created their own wealth. McDonald's solution is in- troducing an inheritance tax. As is usually the case when someone voices a strong opinion there are those that take the opposite view. Greg Mankiw, a Harvard economics professor, has written much on inheritance tax. His opinion in The Estate Tax is One Death Penalty Too Many is "It is a good rule of thumb that when you tax an activity, you get less of it." Mankiw argues it is better to motivate wealthy families to continue to expand their empire. The economic bene- fits will create more growth,fits will create more growth,f opportunity, employment and prosperity. Taxing inheritance in Cana- da would result in additional revenue. That would be helpful. But the fallout could be a reduced incentive for wealthy families to continue to investfamilies to continue to investf and expand. That would ulti- mately be a greater cost. Peter Watson, of Peter Watson Investments MBA, CFP, R.F.P., CIM, FCSI, offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.peterwat- soninvestments.com. SHOULD CANADA IMPLEMENT AN INHERITANCE TAX? OPINION TAXING INHERITANCE WOULD RESULT IN ADDITIONAL REVENUE, WRITES PETER WATSON PETER WATSON Column