Canada’s NDP has proposed a one per cent tax on wealth over $20 million as part of its election platform. The party doesn’t include much detail yet but estimates it could generate several billion dollars a year. Pundits have been quick to pounce on a wealth tax as too extreme, difficult or costly. A National Post column last month asked: “What is the problem to which creating a wealth tax is a solution?” Growing inequality is the problem.

The richest families in Canada are now more than 4,400 times wealthier than the average family, according to a study by the Canadian Centre for Policy Alternatives (CCPA). This widening gap has gone hand-in-hand with declining social and economic mobility. The CCPA found that family dynasties are more likely to keep their money in the family than they were two decades ago thanks to light taxes and loopholes that primarily benefit the wealthy, while Statistics Canada recently reported that family income mobility has declined since the 1980s. The idea of a wealth tax sparked more interest earlier this year after Democratic leadership contender and U.S. Sen. Elizabeth Warren proposed a two per cent tax on those with more than US$50 million in assets, with the rate rising to three per cent for fortunes over US$1 billion. “The Ultra-Millionaire Tax” would target all assets, from closely held businesses to residences outside the country. Warren estimates it would bring in US$2.7 trillion over a decade ⁠— revenue she would use to reverse staggering inequality in the country through measures such as universal child care and free tuition at public colleges. Rising disparity is a global problem, and it’s not just progressive politicians who are pointing out the need for increased taxes on wealth.

There’s debate among economists about the pros and cons of annual wealth taxes, and whether inheritance taxes and other taxes on capital and wealth would work better. Canadians for Tax Fairness, an organization that advocates for fair and progressive taxation, has called for restoring an inheritance tax on high-wealth estates to narrow Canada’s widening wealth gap, make our tax system fairer and generate funds to pay for public services. Democratic leadership contender and U.S. Sen. Bernie Sanders proposed a similar plan to expand the estate tax for inheritances over US$3.5 million. The question and debate should no longer be whether we have increased taxes on wealth and capital, but what form they should take. We should thank the NDP for getting this debate going in Canada, and look forward to seeing what other federal political parties propose. Erika Beauchesne is a communications coordinator with Canadians for Tax Fairness, which advocates for progressive tax policies to reduce inequality and strengthen the economy. Canadians for Tax Fairness has proposed a set of progressive tax measures for federal parties ahead of the 2019 election.