The Liberal government will propose the following reforms: Capital gains Canadian taxes.
Minister of Finance and Deputy Prime Minister Chrystia Freeland The long-awaited reforms were announced on Sundaywas originally to be part of the 2024 federal budget, which was to be introduced on Monday.
The proposal has sparked controversy since its announcement. The Liberals proposed this as a measure to improve “tax fairness” It will generate approximately $19 billion in revenue for the federal government over five years.
“Tomorrow we're going to introduce some changes where a small number of wealthy Canadians will pay more tax when they sell their successful investments,” Freeland told reporters on Sunday.
Capital gains are gains from the sale of an asset such as shares or investment property. Currently, all capital gains are taxed at 50%, meaning half of the profit from the sale is included in your taxable income for the year.
Under the reform plan proposed by the Liberal Party, the inclusion tax rate for individual income exceeding $250,000 per year will rise to 67%, while all corporate income will be subject to a two-thirds inclusion tax rate.
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Canadians’ principal residence will continue to be exempt from capital gains tax.
The Liberals claim the measure will affect only a very small number of Canadians, estimated at just 40,000 people per year.
But some business leaders and other critics say the move will have an impact beyond the tax bills of a handful of Canadians.
Doctors, lawyers and other professionals have objected to the capital gains tax changes since they were announced, saying their ability to retire and take time off depends on the profits they make from their practices.
The Canadian Medical Association said in a statement Saturday that it was “deeply disappointed” by Freeland's announcement that the federal government plans to proceed with tax reforms. The association warned that the change would “place undue stress and financial pressure on physicians and undermine the stability of our health care system.”
While the Conservatives have yet to indicate how they will vote on the proposal, leader Pierre Poilievre has been outspoken in his opposition to capital gains tax reform and the proposed 2024 budget.
when April Question If she were to separate the capital gains bill to force the Conservatives to vote directly on the item, Freeland's answer was “no.”
Regardless of whether the measures are passed into law on that date, the capital gains tax reform measures will take effect on June 25.
— Naomi Barghiel of Global News
© 2024 Global News, a division of Corus Entertainment Inc.
