Capital gains changes could have ‘irreversible’ effects, business groups warn

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Budget 2024 News

Capital Gains Tax,Chrystia Freeland,Canada

Six large industry groups wrote in a letter to Freeland that the proposed capital gains changes will impede economic growth and come at the expense of future generations.

“Put simply, this measure will limit opportunities for all generations and make Canada a less competitive, and less innovative nation,” the letter said.

The letter was signed by the heads of the Canadian Chamber of Commerce, the Canadian Federation for Independent Business, Canadian Manufacturers and Exporters, the Canadian Venture Capital and Private Equity Association , the Canadian Franchise Association and Canadian Canola Growers Association.Freeland tabled the federal government’s 2024 Budget on April 16, which included a proposal to raise the inclusion rate — the portion of capital gains on which tax is paid — to 66.

The groups adds that the tax change will have significant “knock-on impacts” felt across the country, including limiting the creation of new companies and jobs, stifling growth of multi-generation businesses and reducing the availability of health-care practitioners.about the capital gain increase soon after the budget was tabled, claiming it could affect recruitment and retention of physicians in Canada.

 

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