CCPA report explores seven ways to publicly fund national pharmacare program

The Canadian Centre for Policy Alternatives suggests seven ways the federal government could raise $10.4 billion annually to fund a national pharmacare program:

1. Increase the GST to 1.5 percentage points to 6.5%;
2. Increase the general corporate income tax to 20.25% from 15%;
3. Increase all personal income tax rates by 1.8% (except the lowest bracket);
4. Introduce a 1.1% payroll tax, split between employers and employees, with a $10,000 exemption;
5. Increase the capital gains inclusion rate to 75% from 50%;
6. Combine a two percentage point increase in corporate taxes and a 1.2 percentage point increase in personal income tax rates (except the lowest bracket); and
7. Combine a 0.5% increase in the GST with a 1.8 percentage point increase to the corporate tax rate and a 0.6% percentage point increase in personal income tax rates (except the lowest bracket).

The CCPA anticipates that net savings from a publicly-funded plan of $6.1 billion annually would be more equitably shared if Ottawa adopts a funding formula that includes capital gains, corporate and personal income tax increases.