Canadian Prime Minister Justin Trudeau’s government announced Tuesday that it will impose higher taxes on wealthier Canadians as part of the federal budget.
The budget proposes to increase the capital gains inclusion rate, which refers to the taxable share of profits made on the sale of assets.
The taxable portion of capital gains above C$250,000 ($181,000) would increase by half to two-thirds, which the federal government says will affect just 0.1% of Canadians and generate nearly C$20 billion ($14.5 billion). dollars) of revenue in five years. .
“I know there will be many voices raised in protest. No one likes paying more taxes, even – or perhaps especially – those who can afford it the most,” said Finance Minister Chrystia Freeland.
“But before they complain too bitterly, I would like the 1% of Canada – the 0.1% of Canada – to think about this: What kind of Canada do you want to live in?”
Freeland presented the federal budget, which commits C$53 billion ($38 billion) in new spending that he said focuses on economic justice for younger generations.
Freeland denied that his latest budget is primarily a political exercise, but nevertheless acknowledged that for anyone under 40 in Canada, it is “simply harder to establish themselves” than previous generations.
Freeland presented a budget that he said limited the federal deficit to C$40 billion ($29 billion).
Trudeau’s Liberal government is trailing in the polls due to concerns about the cost of living in Canada.
“This budget will do little to improve liberal prospects. They will be defeated and they know it,” said Nelson Wiseman, a political science professor at the University of Toronto. “Their only hope is that Justin Trudeau steps aside and a new Liberal leader is selected. And, even then, it would be difficult for them to prevail.”