Trudeau Promotes Increase in Capital Gains Tax for Intergenerational Economic Equity
Prime Minister Justin Trudeau highlighted his budget plan to increase capital gain taxes during a caucus address on April 17, stating that the current system is unjust towards younger adults.
Addressing his caucus, the Liberal leader emphasized that Generation Z and Millennials are pivotal to the economy, stating that these generations are increasingly responsible for the creation, building, serving, and selling within the country.
Trudeau pointed out that the younger generations are not reaping the same rewards as their predecessors, making it difficult for many middle-class Canadians to work hard and purchase homes in today’s economy.
“We want successful individuals to contribute their fair share to society,” Trudeau emphasized.
He expressed his belief that it’s unfair for a teacher or electrician to pay full taxes on their income while a multimillionaire may only pay taxes on half of their passive income from capital gains.
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The federal budget draws a comparison, highlighting that a nurse earning $70,000 annually faces a similar tax rate as someone earning a million dollars a year from passive capital gains.
Trudeau assured that the increase in capital gains tax would not affect the sale of primary residences in Canada. He stressed that the adjustments aim to assist younger individuals in benefiting from the economy while also ensuring that Baby Boomers and Generation X contribute fairly.
With Generation Z and Millennials now dominating the workforce, Trudeau emphasized their right to similar opportunities as previous generations.
The Canadian tech industry has voiced concerns over the proposed capital gains increase. President of the Council of Canadian Innovators, Benjamin Bergen, warned of potential harm and disincentives for entrepreneurs to establish businesses in Canada.
“The policy change undermines Canada’s ability to attract talent needed for business growth and scaling in the country,” Furlong expressed, adding that the CVCA would work to reverse the government’s decision.
