May 20th, 2024

Capital gains tax changes not included in Freeland’s motion to introduce budget bill

By The Canadian Press on April 30, 2024.

Deputy Prime Minister and Minister of Finance Chrystia Freeland waits for the start of a TV interview after tabling the federal budget on Parliament Hill in Ottawa, on Tuesday, April 16, 2024. Freeland tabled a motion to introduce the federal budget in the House of Commons today, but the document does not include the government's proposed capital gains tax changes. THE CANADIAN PRESS/Justin Tang

OTTAWA – Finance Minister Chrystia Freeland intends to ask Parliament to approve proposed changes to capital gains tax rates in a stand-alone bill.

The most controversial measure from her recent federal budget is not included in the motion she tabled today to introduce the federal budget in the House of Commons.

It includes many other measures announced in the budget April 16, including the national school food program, updates to programs that help first-time home buyers and tax changes for people who own short-term rentals.

It does not say anything about the proposal to tax two-thirds of capital gains, or profits made on the sale of assets, rather than the 50 per cent tax rate applied today.

The increase on what is called the inclusion rate would apply to capital gains above $250,000 for individuals, and all capital gains realized by corporations.

The changes to capital gains taxation are expected to come in a separate piece of legislation.

They are expected to generate more than $19 billion in tax revenues over five years, which will help the Liberals pay for a slew of new spending on things like housing and national defence.

The changes have sparked pushback from businesses, entrepreneurs and doctors, while the government has argued they are about ensuring “fairness” in the tax system.

This report by The Canadian Press was first published April 30, 2024.

Share this story:

10
-9
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments