Canadians react strongly to feds officially introducing capital gains tax hike
The federal government has officially proposed changes to the capital gains tax in Parliament and Canadians have lots to say about it.
Deputy Prime Minister and Finance Minister Chrystia Freeland tabled a ways and means motion in the House of Commons on Monday, which is the first step before legislation is tabled.
She announced the proposed changes to the capital gains tax in a press conference afterwards.
“Tomorrow, we will introduce changes that will result in a small number of well-off Canadians paying a little more in tax when they sell a successful investment,” she said.
“In turn, that revenue will pay for investments that will help all Canadians, especially our younger generations.”
Freeland gave the example of investing that revenue into housing, child care, dental care, pharmacare, and green energy.
As a recap, the Liberal government introduced the capital gains tax hike in its 2024 budget in April, as part of its goal to improve tax fairness in Canada.
Coming into effect on June 25, the tax hike will only impact a small portion (0.13%) of the wealthy population.
According to the government, the inclusion rate will be increased from one-half to two-thirds for any Canadian or corporation that makes over $250,000 per year in capital gains.
“An increased Lifetime Capital Gains Exemption would ensure most middle-class entrepreneurs won’t pay more tax because of these changes, and the new Canadian Entrepreneurs’ Incentive would encourage entrepreneurs to invest in capital-intensive and high-growth sectors,” reads a news release from Canada’s department of finance on Monday.
You can find an example of how a wealthy person might be impacted here.
When it was first announced, Canadians ripped on the wealthy upset by the capital gains tax hike, and certain industries like the medical field said the hike could push doctors to quit.
Similar sentiments were shared online on Monday after the proposed changes were introduced in Ottawa.
“This isn’t a wealth tax — it’s a tax on innovation and risk-taking,” Harley Finkelstein, president of Shopify, posted on X.
Today, @cafreeland is introducing a motion to increase the capital gains inclusion rate in Canada. This isn’t a wealth tax — it’s a tax on innovation and risk-taking.
Investing in new products or ideas is inherently risky. Entrepreneurs need incentives, not penalties, to drive…
— Harley Finkelstein (@harleyf) June 10, 2024
The director of the Canadian Taxpayers Federation agreed.
“Capital gains tax hike will hurt doctors, successful Canadian businesses & people getting ready to retire, but it won’t do a single thing to make life more affordable,” he shared on X.
This govt has a one-page playbook: take more money from you
Capital gains tax hike will hurt doctors, successful Canadian businesses & people getting ready to retire, but it won’t do a single thing to make life more affordable
No capital gains tax hike!https://t.co/pG48ALNAQp
— Franco Terrazzano (@franco_nomics) June 10, 2024
And of course, some aren’t as offended by the proposed hike.
“Sweetums, if you own more than one house (even if it’s a rustic cottage), you’ve got more money than the rest of us and can pay some extra taxes,” shared one X user.
Them: the capital gains tax increase doesn’t just affect rich people, but also people who own a cabin or cottage!
Me: sweetums, if you own more than one house (even if it’s a rustic cottage), you’ve got more money than the rest of us and can pay some extra taxes.
— Jen The Feisty Librarian (@Feisty_Waters) June 10, 2024
What do you think of the capital gains tax hike? How might it affect you? Let us know in the comments or email us at [email protected].
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