Conservative leader Pierre Poilievre on Sunday morning introduced a reinvestment tax cut that he said would be “rocket fuel” for the Canadian economy.
Poilievre at a press conference in North York, ON, announced a Conservative government would implement a capital gains tax cut effective until the end of 2026. Under the new policy, any person or business selling an asset will pay no capital gains tax when they reinvest the proceeds in Canada.
Capital gains taxes will also be deferred for companies that reinvest in active Canadian businesses, said Poilievre. The gains will be taxed when investors cash out or move the money out of Canada.
“The current capital gains tax locks-up investment in old assets, because selling them would force a big bill,” said Poilievre.
“So, they do not sell and reinvest in homebuilding, small businesses, technology, manufacturing and more. Allowing reinvestments without tax will unlock billions to immediately begin building, hiring, investing and growing.”
He said companies that had invested abroad can sell those foreign investments and bring them back to Canada tax-free.
“This will mean more investment,” said Poilievre.
“This will be like economic rocket fuel for Canada to put us in liftoff.”
“We will soar above the Americans, we will reverse the decade, the lost Liberal decade, and make this country boom.”
“The Americans will see the investment pouring back over the border into Canada, and it will allow us to build the infrastructure we need — pipelines, mines, factories, export terminals that will get our goods overseas, going around the Americans, making us more independent, and helping build that economic fortress so that never again do the Americans have us in such a weak position as the Liberals have put us.”
The Tory leader said the new plan will allow more homebuilding and the invention of new technologies, more data centers, more paychecks and more economic independence.
“We will also preserve existing lifetime capital gains exemption for small business owners and farmers will benefit from this deterrent deferral on top of their existing exemption,” said Poilievre.
The policy would go into effect July 1, and run until December 31, 2026 — but, if it causes a major economic boom, as expected, Conservatives will make it permanent,” said the party in a statement.
