Poilievre comes out against capital gains tax change, Liberal plan passes with backing of other parties
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Conservative Leader Pierre Poilievre and his party opposed the Liberals' plan to increase Canada's capital gains inclusion rate on Tuesday, in a vote that still passed with the backing of the NDP and Bloc Quebecois.
Conservative Leader Pierre Poilievre and his party opposed the Liberals' plan to increase Canada's capital gains inclusion rate on Tuesday, in a vote that still passed with the backing of the NDP and Bloc Quebecois.
The motion, paving the way for the Liberals to advance legislation to change Canada's tax laws accordingly, cleared the House of Commons by a vote of 208 to 118.
To help offset billions in new spending on housing and social safety net supports, Finance Minister Chrystia Freeland announced in the April budget a coming hike to how much tax high earners must pay on the sale of assets or investments such as stocks and secondary properties.
The move – coming into effect on June 25 – will see the capital gains inclusion rate increased from 50 per cent to 67 per cent for individuals earning more than $250,000 in capital gains in a year, and on all capital gains realized by corporations and most types of trusts.
While for several weeks the Conservatives demurred on their position on the tax change – estimated to rake in $19.4 billion over five years – the proposal was quickly criticized by business groups as a "short-sighted" way to improve the deficit. Doctors, entrepreneurs and farmers were among its critics.
Defending against these voices, the Liberals asserted the changes will only impact the wealthiest 0.13 per cent, and approximately 12 per cent of Canada's corporations, given the existing capital gains exemption on primary residences will remain, while the lifetime exemption limits for small business shares, as well as farming and fishing properties, are increasing.
Freeland opted to pull this major tax reform out of the budget implementation bill, forcing the Conservatives to come out with a clear stance, and now likely setting up a summer's worth of attack lines for each side.
