Ottawa, April 17
The Canadian government, led by Prime Minister Justin Trudeau, made an announcement on Tuesday regarding the implementation of higher taxes for the wealthiest citizens as part of the federal budget. One of the key proposals in the budget is to increase the capital gains inclusion rate, which pertains to the taxable portion of profit earned from the sale of assets. Specifically, the taxable portion of capital gains exceeding $250,000 Canadian (US$181,000) would be raised from half to two-thirds. The government estimates that this change will only impact 0.1% of Canadians while generating approximately $20 billion Canadian (US$14.5 billion) in revenue over the course of five years. Finance Minister Chrystia Freeland acknowledged that there will likely be opposition to these tax increases, as no one enjoys paying more taxes, especially those who are more financially capable. However, she urged the wealthiest individuals in Canada to consider the kind of country they want to live in. The federal budget, presented by Freeland, emphasizes economic justice for younger generations and includes $53 billion Canadian (US$38 billion) in new spending. Despite denying that the budget is primarily a political maneuver, Freeland recognized that establishing oneself in Canada is more challenging for individuals under the age of 40 compared to previous generations. The budget aims to address this issue and limit the federal deficit to $40 billion Canadian (US$29 billion).
