Despite their strong criticism of the federal budget, the Conservative Party of Canada is not committing to repealing the Liberals’ planned increase in the capital gains inclusion rate.
The budget, which spans 416 pages and was introduced in the House of Commons this Tuesday, proposes hiking the rate from 50% to 67%. This adjustment would impact individuals with over $250,000 in annual capital gains starting June 25, expanding tax liabilities for them as well as for corporations and trusts.
The government argues that the tax change would affect a small segment of the population but generate substantial revenue—projected at $19.3 billion over the next five years. However, this proposal has not gone down well with several Canadian business owners and entrepreneurs, who contend that it could hamper innovation.
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READ: Canada To Increase Capital Gains Taxes As Spending Continues
During a recent appearance on CTV’s “Question Period,” Conservative deputy leader Melissa Lantsman dodged questions about reversing this tax change. “We’re going to continue to focus on axing the tax and building the homes and fixing the budget and stopping the crime,” Lantsman stated, indicating that the party would clarify its position in its electoral platform.
While the Conservatives have voiced their intention to oppose the budget, describing it as “wasteful” and “inflationary,” they remain non-committal on this particular tax issue. Opposition parties like the Bloc Quebecois and the Greens have also indicated their intent to vote against the budget.
READ: Canada To Increase Capital Gains Taxes As Spending Continues
The NDP, represented by finance critic Don Davies in the same panel discussion, is still undecided on their stance but is advocating for additional revenue measures, such as a one-time excess profit tax on oil and gas companies, despite concerns that such costs could be passed on to consumers.
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