“Divisive and political”: Trudeau ignites another heated debate over capital gains tax hike

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The debate continues over Prime Minister Justin Trudeau and his government’s proposed changes to the capital gains tax.

An X post from the Liberal Party leader on Tuesday reignited the heated discussions over the changes.

“We’re asking the very wealthiest to profit a little less off their capital gains — to pay their fair share — so we can reinvest it in the middle class,” wrote Trudeau.

The post has garnered 1.5 million views and thousands of reactions since then.

If you haven’t been following, the federal government introduced the capital gains tax hike in its 2024 budget in April as part of its goal to improve tax fairness in Canada.

The changes were officially proposed last week after Deputy Prime Minister and Finance Minister Chrystia Freeland tabled a ways and means motion in the House of Commons on Monday, which is the first step before legislation is tabled.

The tax hike, which takes effect on June 25, will only impact a small portion (0.13%) of the wealthy population.

According to the government, the inclusion rate for any Canadian individual or corporation that makes over $250,000 per year in capital gains will be increased from half (50%) to two-thirds (66%).

You can find an example of how a wealthy person might be impacted here.

Many are outraged by the tax, calling it “theft” instead of a “fair share.”

“Asking? That’s quite the euphemism. I’m tired of paying half of my wages for you to just waste it,” added another.

Shopify President Harley Finkelstein chimed in, saying that the capital gains tax hike is “divisive and political.”

Ben Mulroney, son of former Prime Minister Brian Mulroney, reposted Finkelstein in support of his position.

“If you say something like this is an innovation and investment killer, I listen,” wrote Mulroney.

However, other Canadians pointed out that the capital gains inclusion rate was higher while Mulroney’s dad was running the country.

“None of the Mulroneys seem to remember when their dad was PM,” reads one post, which has a screenshot from a Scotiabank article listing the history of inclusion rates since 1972.

“The capital gains inclusion rate was at or above 66.6% for 12 years previously, and small businesses didn’t fail, professional corporations didn’t die,” added another X user in agreement.

Others shared their support for the tax hike.

What do you think of the capital gains tax hike? How might it affect you? Let us know in the comments or email us at [email protected].

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