Pierre Poilievre’s Conservatives will have to take a position no later than Tuesday regarding the measure which aims to increase the tax on capital gains by more than $250,000, while the Liberals will force a vote on the ways and means motion that they filed on Monday.
During a press briefing in the foyer of the House of Commons, Finance Minister Chrystia Freeland called on Canadians to take note of MPs who oppose these changes and to consider their motivations
.
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 who have made big gains on investments to pay less taxes than a teacher or a nurse, a carpenter or a plumber
did she say.
The Conservatives, who have so far refused to comment on the measure contained in the April budget, will have to tune in quickly since the vote will take place on Tuesday, according to what Ms. Freeland declared after having suggested that she doesn’t try to make them look bad.
Currently, Canadians who realize capital gains, typically from the sale of an asset like stocks or rental housing, only pay tax on half of the profit. This remains a preferential rate for work income which is taxed at 100%.
The Liberal motion proposes to increase this inclusion rate to two-thirds for the portion exceeding $250,000. The sale of a principal residence is — and would remain — tax-exempt.
$ of profits from a sale”,”text”:”For example, a couple who owns a rental property will not pay any additional tax on the first $500,000 of profits from a sale”}}”>For example, a couple who owns a rental property will pay no additional tax on the first $500,000 of profits from a sale
illustrated Ms. Freeland.
The minister insisted on the fact that the tax measure will thus lead a small number
of Canadians well off
to pay a bit more
taxes, which will make it possible to invest in the construction of housing, the dental care program, the school food program and even in daycare services.
Shortly after tabling the budget, Prime Minister Justin Trudeau told his caucus that he was aiming to the ultra-rich
pay their fair share
.
In fact, Ottawa calculates that the measure will affect 0.13% of the population and that it will generate revenues of $19.4 billion over five years.
Annoyance of conservatives
A Conservative spokesperson, Marion Ringuette, indicated that the Conservatives have not yet determined how they will vote on the motion and are still studying it.
It nevertheless seemed to prepare the ground for Pierre Poilievre’s troops to vote against it by judging that the Liberal measure is neither more nor less thana tax on health care, housing construction, small businesses, farmers and pensions
.
billion dollars in new inflationary spending announced in the latest budget”,”text”:”Doctors, small business owners and Canadians saving for retirement all opposed Trudeau’s next tax hike, but this the latter is desperate to finance the $61 billion in new inflationary spending announced in the last budget”}}”>Doctors, small business owners and Canadians saving for retirement have all opposed Trudeau’s next tax hike, but he is desperate to fund the $61 billion in new inflationary spending announced in the last budget
she said.
A government Source close to Freeland who was not authorized to speak publicly said that if the Conservatives vote against the motion, it would demonstrate that they are frankly fake populists
and their lobbyist friends have a lot of power within their caucus
.
The Conservatives’ speech has great similarities with that of the Canadian Chamber of Commerce, which considers that this tax increase creates uncertainty, slows down investment and encourages the whole world to do business elsewhere
.
Generational fairness should consider the actions we take today at the expense of our future prosperity and economic opportunity
supports its director of tax policy, Jessica Brandon-Jepp, in a statement sent in English.
At the Bloc Québécois, Joanie Riopel, spokesperson for leader Yves-François Blanchet, also indicated that the political party is studying the motion and that it is not in a position to comment at the moment. The party notes, however, that it is a priori favorable to the principle of increasing the inclusion rate on capital gains as proposed in the April budget.
By removing the measure from the budget bill that the Conservative Party of Canada and the Bloc Québécois oppose, the Liberals are forcing their two adversaries to reveal the depths of their thinking.
Although a pivotal moment, Tuesday’s vote is only the first step in the legislative process to change the tax law. A Liberal Source who was not authorized to speak publicly said the government plans to publish a legislative proposal this summer and then a bill.
