May 2024 Poll

“Do you agree with the proposed increase on capital gains inclusion rates to 66 2/3% on capital gains over $250,000 for individuals and all capital gains on corporations and trusts on or after June 25, 2024?”

Comments


Well Canada, if you didn’t feel stuck before let’s add yet another tax to our 5 tiered tax system! You could once sell your principle residence to “downsize” as some called it but that does not happen anymore,  because you go from a million dollar home to a million dollar home!
The plan is to find solutions to over head but now let’s take a property we want to unload because personal situations have changed, kids are busy with their own families, parents have passed on and the big parties are not big parties anymore do we need that second property?
Well, we are going to have to find a way to need it!! As we squeeze our quality of life a little thinner or face giving 67% tax to the tax gods in Ottawa!
You and I know that once you take 67% to a capital gain of $250,000 or more well guess what welcome to TIER 4 & 5 of the tax bracket and we can all sing Oh Holly Tax…
Why are we not protesting, matching up and down the streets over our taxes???
PMJT is smiling from east to west with the millions he will bring in with this new tax invention!
But as PMJT has done so well is implement without long term cause and affect to the overall wellness of Canada!

Take a look at what happens when you drive up mortgage interest rates, noons is buying new homes, you put our entire trades on hold and out of work, who is buying 1.5 million dollar homes at 6% and a mortgage stress test to boot!! Then introduce and rapidly increase the CCR, groceries and fuel go through the roof and Canadians are stuck, angry and desperate!!
I would like to give PMJT a standing ovation for a job well done but I just can not!!
As we pay more tax, we are not OK! And we are not Ok because we are over taxed!
We feel robbed and we are very upset!
We have not improved our health care crisis , our crime is up, missing women and children are still a major problem, we have human trafficking in our schools! Kids are killing kids!
We have tent city communities popping up everywhere, some are so large that they are consuming city blocks and full parks! No one knows what drugs they are buying it is laced with everything from horse tranquilizers to battery fluid! These are just surface problems that we see everyday but it is well rooted and right across Canada.
I am a proud Canadian as I am still grateful for many many things, but we are in a very broken position right now and I have one question and I have asked it before!!
Where is all the tax dollars going?
If you are going to add more tax then give us something in exchange!
A better run Canada putting our tax dollars to good use!

 

By Ann Laurin on May 23, 2024


No, I do not agree with the government taxing capital gains in the first place; never mind increasing the inclusion rate. Capital gains tax is a legalized crime by the government.
When is the government going to support people that have a work ethic and assist them in building their future rather than taxing every penny they earn; even if the earnings come from tax paid dollars already and due to inflation.
Lately the government has been handing out money to people so people don’t have to go to work to support themselves and thus, to some extent, become complacent.  Work is a divine responsibility each one should embrace, including the government.
First doctors where encouraged to set up a certain corporate structure; then when it is working, the government changes the rules—same with family trusts—when can you trust the government?
When will the government perform cost benfit analyis to determine where to invest so the tax payers get a return on their income tax paid investments? Is there anyone in the Dept. of Finance that can advise the politicians on how to invest properly? It is not rocket science.

By Peter on May 23, 2024


Keep in mind after tax dollars are invested. I have read research work to show the 50% inclusion rate mostly accounts for inflation in the value of a capital because we have to pay tax on the inflation as well. This government tipped it’s bias near the beginning of it’s mandate when the PM said he felt business should pay the same rate of tax as individuals. If that is to be the case there will be fewer businesses started. Period. There must be a risk premium to encourage entrepreneurship, basic economics. Why not allow CCPC’s the 250,000 capital gain at 50%?

By t on May 21, 2024


I really struggle with this, particularly because of the deceptive rhetoric involved.  One thing to keep in mind is that any asset that may generate a capital gain was purchased with after-tax dollars.

As noted by another, it’s really a challenge for professional corporations.  A number of years back, Doctors Manitoba promoted incorporation as a way for its members to defer some taxation and look after their own retirement since relatively few have access to a pension.  Changing the taxation negatively impacts this group, especially after the changes that took effect in 2018. 

I agree that this government has a spending problem.  Increasing taxes is a way of them saying “we can do much better with the money than in the hands of citizens and Canadian businesses”.  I would suggest the evidence is to the contrary.  When citizens have fewer after-tax dollars, what do they do?  They cut back on spending and philanthropy.  Does the government pick up the slack?  Generally no (well, they pick up the slack on spending, but it goes to interest payments and more staff rather than the local charity or small businesses).  Considering the size of the federal public service has increased around 40% (in the range of 100,000 employees) since this government took office, it’s ridiculous that they suggest Canadians should tighten their belts while spending profligately.

They like to say what a small amount of people this will impact, but some analysis I’ve seen suggests that it is rarely consistently the same people who claim a capital gain over $250,000.  The logical conclusion would be that it would be primarily one-time events like an estate or sale of a cottage or other property that has appreciated in value.  If that is correct, this will not be a tax on the wealthy as the government likes to suggest.

By Derek T on May 16, 2024


There are two things a government can do to balance their books - bill more or spend less.  I vote for the latter.  This government’s civil service has ballooned in the last 8 years.  Wages and increasing benefits all have to be paid for by….. US!

By Doris Woodman-McMillan on May 14, 2024


Is this such a terrible increase? Remember, there was a time when the inclusion rate was higher at 75%. I take more issue with some of the commentary around this issue, rather than the increase itself.  I have heard it said entrepreneurs will not start a business now because of this. Nonsense!  People start businesses for a variety of reasons; however, to sell them at a profit (capital gain) is not high on that list (if it is even on the list). People will leave the country. Again, nonsense.  The inclusion rate in the US is 100%. Really, want to be taxed at the full rate rather than 66.6? Well, OK. Finally, I pray to God my doctor is more concerned with my health than retirement planning. I also hope people getting into the medical profession are doing so to help people, not because it pays well and offers a great retirement (which it does after rigorous training and study) . Maybe I’m just naive? So, I don’t have a big issue with the change either way. And while there is a certain amount of truth to the inflation argument regarding the capital gain, it has always been there no matter what the inclusion rate. (Speaking of inflation, I REALLY have an issue with the Pension NRTC, Line 31400, that remains at $2,000 since at least 1996!)

By Michael on May 10, 2024


We all know taxes have to go up and the bigger problem with legislation is its divisive nature - pitting the successful against the less successful. There’s also a sense of less control over personal and corporate tax destiny. And they could have freed up some rental and cottage properties to soften the housing market if they gave second-property owners more time to react.
Go with a 60% inclusion rate for everyone and make it effective Jan 1, 2025 to simply the tax filing and provide some time to sell properties.
Increase GST to 6% for more tax revenue on those that consume - and the consumer has choice how to spend and get taxed or not.
At the same time, review what gets GST taxed so it doesn’t impact the necessities of life. 
Lock in carbon taxes where they are, and reduce rebates to finance carbon reducing infrastructure and increase “greener” energy production.  With a million more people and advancement of AI, we’ll need more energy.

By Dan Allen on May 10, 2024


Nothing but a cash grab.  Instead of managing the government expenditures responsibly, the spend is out of control.  Canada is in BIG trouble.  The International Monetary Fund will be calling and it isn’t going to be pretty - it’s one hell of a mess.

By Clint Wormsbecker on May 10, 2024


On a general principal I agree with it, but the amount of $250,000 is too low.  It also looks like they will have even GRE estate returns fall under the Trust rule, and that I am totally against.

By Tineke Vos on May 09, 2024


I agree with most comments to date, but I want to add that the different treatment for personal and corporate capital gains flies in the face of tax integration.

By Pierre Senecal on May 09, 2024


Capital gains tax is mostly a tax on inflation, which is very unfair.  There should be a chart of inflation adjustments before any tax is levied.

By Virginia Ms. Hoover on May 08, 2024


Firstly, the $250,000 limit is rather low and should have been around $500,000.

Secondly, the same $250k exemption at the 50/50 inclusion rate should have been allowed to CCPCs for professionals like Doctors, Accountants, and others as this was a good way to fund retirement funds in CCPCs. Self-employed professionals don’t have a company pension plan.

By Ray Mistry on May 03, 2024


No, I don’t agree.  It hurts the economy as people may choose to leave Canada or invest somewhere else.

By Maria Cheng on May 02, 2024


History has shown that when a government increases the taxes on businesses and investors, those same investors decide to go elsewhere (to a different country) in order to pay less taxes.  Right now, Canada is an attractive place to locate and invest.  Our current government is wanting to drive them away which will, in effect, reduce the tax revenue they will receive.  As has been mentioned many times in the past eight years, the government has a spending problem, not a revenue problem.  If they manage to get more revenue, they seem to be able to spend it easily enough.  Spot the problem?  The key is to make investment in Canada attractive not repulsive (which this policy is clearly going to do).

By Robert A Litschel on May 02, 2024


How can you keep taxing Canadian’s at this level!

By Brian Horton on May 02, 2024


No, I don’t agree with the increase to the inclusion rate for capital gains.  Perhaps the government could increase their revenue by taxing snowbirds - the Canadians who so South for more than 30 days every calendar year.  They’re not supporting the Canadian economy while they’re away, but they sure come back for our health care.

By Ron on May 02, 2024