Poilievre still won’t say if he’ll scrap government’s capital gains tax hike
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Conservative Leader Pierre Poilievre was noncommittal Thursday when asked what a government led by him would do with Ottawa’s proposed changes to the capital gains tax.
Poilievre has portrayed himself as an anti-tax crusader, centring his leadership on a promise to dismantle the Liberal government’s carbon tax — and he pitched a summer tax holiday from that levy Thursday to give drivers a break.
He’s said a future Conservative government will do away with the annual tax hike on alcohol. He also has suggested there could be an income tax cut if he’s elected.
But Poilievre has been reluctant to stake out a clear position on capital gains tax changes that were first pitched in Finance Minister Chrystia Freeland’s April budget.
“There is no such increase. They’ve pulled that out of the budget,” Poilievre said Thursday when asked if he supports raising the capital gains inclusion rate from one-half to two-thirds for all corporations and for individuals who claim a gain of more than $250,000.
Poilievre has taken similar positions when asked about other Liberal programs like dental care, pharmacare and national child care; he’s either said they don’t really exist or they’re so poorly managed that he can’t comment on what he’d do with them when he takes office.
The Liberal government did separate the capital gains tax change from its budget implementation legislation and has promised to instead introduce a separate bill on the matter in the House of Commons at a later date. That’s expected to happen before Parliament rises for its summer break at the end of next month.
Prime Minister Justin Trudeau said Thursday the tax will take effect on June 25, as promised in the budget.
The change was detailed in the budget’s tax annex and the Canada Revenue Agency (CRA) can enforce the change provisionally until the legislation passes.
Trudeau has pounced on Poilievre’s caginess about the capital gains tax change, saying the Conservatives are choosing to stand with the “ultra wealthy” over middle-class Canadians.
The hike has faced fierce opposition from some business figures — including Freeand’s predecessor, Bill Morneau — who say the tax increase is a threat to future economic growth and productivity.
Doctors, who generally don’t have workplace pensions, have said the change will hurt their retirement savings because they don’t qualify for the small business tax exemption that’s available to small business owners, farmers and fishermen.
Prime Minister Justin Trudeau says the changes to the capital gains tax included in the government’s 2024 budget will generate close to $20 billion to invest in things like housing and child care. Trudeau says the tax hike, which would apply to capital gains above $250,000 for individuals, will come into effect on June 25.
Some cottage owners and landlords say they’ll be unfairly saddled with higher taxes when they move to sell.
But Freeland has defended the increase as a matter of fairness.
She has said the tax hike will pull in $19 billion in new revenue that can be used to fund supports for new housing and big-ticket social programs like dental care and pharmacare.
Trudeau echoed that statement during a stop at a child care centre in New Brunswick on Thursday.
“We believe that this country needs a little more fairness for every generation. We’ve seen far too many people amongst the wealthy do extremely well,” Trudeau said, adding that some assets have gone up a lot in value in recent years.
Some Canadian doctors warned that the Liberal government’s new capital gain tax increase could push more doctors out of family medicine for financial reasons at a time when millions of Canadians don’t have a family doctor.
After the pandemic low, the stock market has roared back to new heights and most property prices have seen some appreciation.
“Yes, we are asking those who’ve done really well over the past few years to pay a little bit more,” Trudeau said.
He said taxpayers caught up in the change will have to come to terms with making “a little bit less in terms of the profits they’re making off of their capital. It’s about fairness.”
