Liberal Capital Gains Tax changes also targets middle class Canadians

Last week, commonsense Conservatives voted against Justin Trudeau and Chrystia Freeland’s latest tax hike on Canadians.

After nine years of reckless and relentless inflationary deficit spending, the Liberals are now looking for any opportunity to squeeze already cash-strapped Canadians to pay for their failures.

To that end, in the spring budget, Finance Minister Chrystia Freeland announced an increase to capital gains taxes.

Capital gains are the profits from the sale of a property, asset, or investment; the increase in the value of an asset over the price originally paid for it.

Say you invested $100 in a stock and sold those shares a year later at their new value of $150, you would have a capital gain of $50.

Capital gains taxes are the tax paid by the owner/investor/beneficiary of the asset, on the sale of that asset on a percentage of the amount it has “appreciated” (increased in value).

The percentage a capital gain is taxed at is known as the “inclusion rate”. The current inclusion rate for capital gains in Canada is 50%.

Sticking with our stock example, of your $50 capital gain you would need to pay tax on half, or $25.

Billed as a “tax on the wealthiest Canadians” it quickly became clear Trudeau and Freeland’s plan to further tax capital gains was just another hit to our overtaxed and quickly disappearing middle class.

There are numerous problems this shortsighted policy poses.

While tax fairness is important, the reality is this latest tax hike will marginally impact the wealthiest Canadians, but it will hit doctors, farmers, small business owners, seniors (who have invested wisely for retirement), and likely anyone who owns a rental property.

It should be obvious, taxing farmers drives up food prices. Taxing doctors means it’s harder to find one (because they are all leaving). Taxing homebuilders means fewer homes getting built (during a housing crisis). And taxing small business means fewer jobs, higher costs, and lower paycheques.

It’s just another reason we keep saying, Justin Trudeau is not worth the cost.

Some assets such as the sale of a home (primary residence) or up to $1 million of a farm or fishing business are exempt from capital gains taxes. All Canadians also have a lifetime capital gains tax exemption of just under $1 million. That may seem like a lot, but in reality, in most Canadian cities the sale of any property will quickly eat that up. As the cost of everything including property/real estate goes up, the more folks will be hit and hurt by capital gains taxes.

Finally, there is the simple principle that the owner already paid tax when they purchased that asset in the first place. They paid the government’s share already, but rather than celebrate investment and success in Canada, the government wants to penalize their good fortune, skill, and success with more taxes.

Small wonder after nine years of Justin Trudeau and Chrystia Freeland, Canadians’ standard of living is in sharp decline.

This is why within 60 days becoming Prime Minister, Pierre Poilievre will name a Tax Reform Task Force of entrepreneurs, inventors, farmers, and workers to design a Bring it Home Tax Cut that will allow workers to bring home more of each dollar they earn to reward work. Bring home production and paycheques, by making Canada the best place to invest, hire and make things. Bring home fairness by reducing the share of taxes paid by the poor and middle class while cutting tax-funded corporate welfare and cracking down on overseas tax havens. And, cutting the paperwork and bureaucracy in the tax system by at least 20%.

Common Sense Conservatives will unlock the potential of our entrepreneurs, inventors, builders, and workers to restore Canada’s promise.

We will be a country where hard work earns powerful paycheques and pensions that buy affordable food, gas, and homes in safe neighbourhoods.

A Canada where Canadians can get ahead, not just get by.

We will bring home tax fairness.