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Tax the rich more than 50%?  “There is a breaking point,” says Mario Dumont.

Tax the rich more than 50%? “There is a breaking point,” says Mario Dumont.

While tax increases for the richest are expected to be announced in the federal budget on Tuesday afternoon, Mario Dumont believes there are limits to the rates that can be imposed at 1% without having consequences for the economy.

The political analyst is particularly concerned that large companies and investors are deciding to leave the country.

“There is a breaking point,” he says. Currently, people receiving these salaries are taxed at approximately 52% in Quebec. It has been proven that above 50% no longer has any appeal. You work and […] You give more to the government than you have left.

“When I say it's a breaking point, I mean people are taking action,” he adds. They leave Canada, take their money and move it. In the end, it becomes bad for the Canadian economy, because if they could, they would invest elsewhere.

Mr. Dumont believes this is Canada's “economic tragedy.”

  • Listen to the Dutrizac-Dumont meeting via QUB :

He added: “Companies are no longer investing.” Productivity is in free fall and productivity is directly the standard of living. The population has not yet received this message, but our standard of living is declining, and this is a slippery slope.

He continues: “In a few years, if nothing happens, our standard of living compared to Americans, we won't be in the same club at all.” The gaps are already widening dramatically, but we feel this will accelerate because companies here are no longer investing in productivity. “It's a worrying economic situation.”

The former politician will also pay special attention to budget expenditures, and more specifically whether they will be fully borne in the current year.

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He asserts: “What we are hearing is that the deficit in the budget year that begins may not be as huge as all the announcements in recent weeks have indicated, because we could have committed to spending over the two or three years following the budget.”

“In other words, a government that opinion polls show has a strong chance of losing the elections will actually commit to the budgets of the next government,” explains the former leader of the Democratic Alliance party. That would also be something to pay attention to.”

Watch Mario Dumont's full analysis in the video above