The federal budget is being met with disdain from Canada’s innovation industry, including tech darling Shopify, which called the capital gains measures in the fiscal plan a potential cause of “irreparable harm.”includes a proposed increase to the proportion of capital gain earnings on which businesses pay income tax, to two-thirds from one half.
“My phone was exploding with texts from leaders across the country saying, ’This is a nightmare. You have to fix this. They don’t know what they’re doing,’” Benjamin Bergen, president of the Council of Canadian Innovators industry group, said Wednesday. Eighty per cent of 500 businesses consulting firm KPMG surveyed in 2021 said they needed more workers with digital skills, but two-thirds were having trouble finding and hiring such talent. The report was released before artificial intelligence began booming in the wake of ChatGPT’s release in 2022, which has only heightened demand for tech talent.
“It’s marketing experts, sales experts, legal experts that are traditionally mid-career that ... you’re completely undermining by this type of policy lever that’s being implemented.” Forbes estimates Lütke’s net worth is valued at US$6.4 billion. While he’s been more vocal in his criticism of the federal government’s policy decisions in recent months, he previously chaired a digital strategy table that convened in 2018 and hosted Prime Minister Justin Trudeau.
“Such policy change undermines Canada’s position to attract the talent needed to grow and scale companies here.”Alison Nankivell, chief executive of the MaRS innovation hub in Toronto, took such reaction to the budget to be a reflection of the tug of war that can pit fairness against economic opportunity.
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