How Doug Ford’s tax plan could bring back a housing bubble

a man wearing a suit and tie: Ontario PC Leader Doug Ford holds a unity rally in Toronto on Monday, March 19, 2018. THE CANADIAN PRESS/Chris Young© Used with permission of / © Rogers Media Inc. 2018.
Ontario PC Leader Doug Ford holds a unity rally in Toronto on Monday, March 19, 2018. THE CANADIAN PRESS/Chris Young

Election season is the time or politicians to throw out outlandish proposals to see what sticks. So it’s not entirely surprising that Ontario PC leader Doug Ford mused recently about abolishing the 15 per cent non-resident buyer tax on real estate, which was introduced last year by the Liberal government. But not only is such a move likely to win little popular support, it could also start re-inflating a housing bubble that policymakers have struggled to control.

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“I just don’t like the government getting involved,” Ford told the Globe and Mail. “I believe in the market dictating. The market, no matter whether it’s the stock market or anything, it will always take care of itself—supply and demand.” 

It’s a puzzling statement. “How that can possibly be a top priority, especially given very compelling evidence that said tax played a huge role in deflating the Toronto housing bubble in the past year, is a mystery,” wrote BMO chief

Article source: http://www.msn.com/en-ca/money/topstories/how-doug-ford%E2%80%99s-tax-plan-could-bring-back-a-housing-bubble/ar-BBKw4RE?srcref=rss