Prominent business groups are backtracking on their claim that one in five Canadians would be affected by the federal government's proposed changes to capital gains taxation.Perrin Beatty, president of the Canadian Chamber of Commerce, points Prime Minister Justin Trudeau to his seat for a fireside discussion on Monday, April 15, 2024.
The group claimed one in five Canadians would end up paying higher taxes over the next decade — but the study from which that figure was taken suggests otherwise. But the federal budget only increases the inclusion rate on capital gains above $250,000, which means a much smaller fraction of Canadians would end up paying higher taxes.
The joint letter from the Canadian Chamber of Commerce and other industry associations calls on the Liberal government to scrap the tax increase.Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won't be impacted by that change — and it's a move to create fairness.