(Ottawa) Finance Minister Chrystia Freeland is staying the course on increasing the tax rate for capital gains despite criticism. She tabled a motion on Monday and not a bill in the hope that this measure will be adopted quickly.
Ms. Freeland, who also serves as Deputy Prime Minister, defended herself from trying to corner the Conservatives by separating the capital gains provisions from the implementation bill from other measures in the last federal budget, but at the same time she invited voters to pay attention to the vote on this issue.
“Pay attention to the MPs who will vote against these changes and think about their motivations,” she said at a press conference. Pay attention to those who defend a tax system that favors the wealthy, to those who oppose greater tax fairness for everyone, to those who want millionaires to make a big profit on their investments to pay less tax than a teacher or a nurse, a carpenter or a plumber. »
In her latest budget, Minister Freeland announced that the inclusion rate – the taxable portion of the capital gain – will increase from 50% to 66% if this gain exceeds $250,000 in a year. She estimates that this measure should generate 19.4 billion over five years and plans to use it to finance the construction of 4 million homes. It is due to come into force on June 25.
The government estimates that this change will affect some 40,000 people and 307,000 companies. It has attracted criticism from doctors and entrepreneurs who feel they have been unfairly penalized.
