Finance Minister Chrystia Freeland has introduced a controversial tax hike on capital gains, effective June 25, which is expected to raise billions in revenue for the federal government and provinces.“Even after this change in the capital gains inclusion rate, capital gains remain taxed in Canada at a lower level than in jurisdictions like California or New York City,” Freeland told reporters. Blacklock's Reporter said the tax change raises the capital gains inclusion rate from 50 to 66%, which Freeland claims will make Canada's tax system fairer. However, the Finance Department's statement did not elaborate on how this will achieve fairness, and Freeland did not explain the calculation behind the new tax rate.The Bank of Canada has declined to comment on the impact of the tax change, despite Conservative MP John Williamson's request for insights at a recent hearing. Williamson pointed out that the bank had previously expressed views on climate policy, and it was surprising that they did not have a position on a tax change that investors are worried about.Freeland dismissed concerns about the impact on investments, stating that the new tax rate is necessary to raise revenue for provinces and territories. She estimated that provinces and territories will collect an additional $12 billion in revenue, which she believes is a significant amount for investments.However, critics argue that the tax hike will discourage investments and hurt economic growth. The timing of the tax change, effective June 25, has also raised questions about the government's motives.
Finance Minister Chrystia Freeland has introduced a controversial tax hike on capital gains, effective June 25, which is expected to raise billions in revenue for the federal government and provinces.“Even after this change in the capital gains inclusion rate, capital gains remain taxed in Canada at a lower level than in jurisdictions like California or New York City,” Freeland told reporters. Blacklock's Reporter said the tax change raises the capital gains inclusion rate from 50 to 66%, which Freeland claims will make Canada's tax system fairer. However, the Finance Department's statement did not elaborate on how this will achieve fairness, and Freeland did not explain the calculation behind the new tax rate.The Bank of Canada has declined to comment on the impact of the tax change, despite Conservative MP John Williamson's request for insights at a recent hearing. Williamson pointed out that the bank had previously expressed views on climate policy, and it was surprising that they did not have a position on a tax change that investors are worried about.Freeland dismissed concerns about the impact on investments, stating that the new tax rate is necessary to raise revenue for provinces and territories. She estimated that provinces and territories will collect an additional $12 billion in revenue, which she believes is a significant amount for investments.However, critics argue that the tax hike will discourage investments and hurt economic growth. The timing of the tax change, effective June 25, has also raised questions about the government's motives.
