Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks at a press conference about changes to capital gains tax legislation, on Parliament Hill in Ottawa, Ontario, Canada, June 10, 2024.
The Parliamentary Budget Officer is projecting an increase of $17.4 billion in income tax revenue from 2024-25 to 2028-29 from the Liberal government's increases to the capital gains tax.Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks at a press conference on Parliament Hill in Ottawa on June 10, 2024, about changes to capital gains tax legislation. The Parliamentary Budget Officer is projecting an increase of $17.
"In contrast, individuals have more options to mitigate the impact of the higher inclusion rate over the long term, as only the portion of capital gains exceeding $250,000 in a year is subject to that higher rate."Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won't be impacted by that change — and it's a move to create fairness.
"Capital gains are more volatile than other types of income, which makes them difficult to predict, as they are influenced by numerous factors such as market conditions, economic cycles and changes in tax policy," the PBO acknowledged, noting such volatility could see the total tax revenue as low as $15.6 billion when factoring in elasticity.
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