Freeland to scrap capital gains tax hike if she’s elected #CanadaFinance

Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.

Article content

It’s a major reversal for Freeland, who introduced that capital gains hike in April as Trudeau’s finance minister. She argued at the time that it was fair for the government to ask companies and investors to pay more to provide additional revenue for the government.

Article content

The election of Donald Trump, who has promised to extend tax cuts implemented in his first term, has changed the situation. Freeland believes the tax hike no longer makes sense for Canada because of the risk that Trump’s nationalist policies — which also include tariffs and deregulation — draw investment away from its trading partners, said the person, speaking on condition they not be identified.

The tax change raised Canada’s inclusion rate from one-half to two-thirds on companies and on individual investors booking a gain of more than $250,000 in a year. The government projected it would bring in more than $19 billion over five years, with some of the revenue being used for housing measures and other social programs.

Freeland quit Trudeau’s cabinet in December, triggering a series of events that led the prime minister to announce his resignation on Jan. 6. She’s one of the leading candidates to succeed him.

Canada’s tax collection agency put the capital gains increase into effect after a preliminary motion was introduced in the House of Commons, but legislation to enshrine it in law has never been passed.

If Freeland wins the Liberal Party leadership race that’s scheduled to conclude March 9 and becomes prime minister, her government would not introduce that legislation, said the person.

Bloomberg.com

Share this article in your social network