May 26th, 2024

Liberals raise capital gains tax on wealthiest Canadians, firms to pay for agenda

By The Canadian Press on April 16, 2024.

A Canada flag flies on top of the West Block on Parliament Hill in Ottawa on Tuesday, April 16, 2024. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA – The Liberal government met all its fiscal goals in the federal budget today, including keeping the $40 billion deficit from rising, even as it introduced tens of billions in new spending.

Finance Minister Chrystia Freeland is presenting the federal budget in the House of Commons today, which pledges $53 billion in new spending that she says is focused on economic justice for younger generations.

Meanwhile, the deficit, deficit-to-GDP ratio and debt-to GDP ratio are all projected to fall every year until 2028-29.

To pay for some of the new spending on things like housing and national defence, the Liberal government is increasing taxes on some asset sales profits.

The federal budget proposes to increase the taxable portion of capital gains above $250,000 from half to two-thirds, which it says will only affect 0.1 per cent of Canadians while raising nearly $20 billion in revenue over five years.

Federal finances are also benefitting from a stronger economy and higher-than-expected income tax revenue, which help the government pay for new measures without blowing through their promised fiscal guardrails.

This report by The Canadian Press was first published April 16, 2024.

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