Quote:
Speaking in Milton, Ont. Poilievre unveiled another plank of his party's plan to tame the housing crisis by pledging to cut development taxes on new home construction.
For every dollar of development taxes cut, a newly elected Conservative government says it will match that amount to a maximum of $25,000 per home, for a total possible saving of $50,000.
For example, if a municipality cuts development taxes on a home by $35,000, it will receive a "federal bonus" of $17,500.
"We will build more, tax less and get the government out of the way to save you tens of thousands of dollars," Poilievre said in a video promoting the policy.
|
https://www.cbc.ca/news/politics/con...506678?cmp=rss
The money for these developments need to come from somewhere, and municipalities have tried to put the burden on the new home vs on existing taxpayers(with varying success) who already paid for their own development costs. So while this will reduce the cost of new homes, it will serve as an inflationary tax on existing owners and renters who have to make up for this loss.
I suspect it will help boost the profits of builders, because these new homes still compete on price with existing ones, so unless they lower their new home prices, causing competition in the rest of the market to lower as well, it's not going to move the price much. I suspect developers swallow up the vacated development costs. Is that a good policy? I don't think so, but open to discussion.