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Conservatives remain unclear ahead of capital gains tax vote

Photo: Justin Tang The Canadian Press The conservatives, who refuse to comment on this measure contained in the April budget, will have to tune in quickly since the vote will take place on Tuesday, according to what Chrystia Freeland said on Monday.

Michel Saba – The Canadian Press in Ottawa

Published on June 10

  • Canada

Pierre Poilievre's Conservatives will have to take a position no later than Tuesday on the measure which aims to increase the tax on capital gains by more than $250,000, while the Liberals will force a vote on the ways and means motion that they filed on Monday.

During a press briefing in the foyer of the House of Commons, Finance Minister Chrystia Freeland called on Canadians to take note from MPs who oppose these changes and to reflect on “their motivations”.

“Pay attention to those who defend a tax system that favors the better off, to those who oppose greater tax fairness for everyone, to those who want millionaires who have made big gains on investments to pay less taxes than a teacher or a nurse, than a carpenter or a plumber,” she said.

The Conservatives, who refuse to comment on the measure contained in the April budget, will have to tune in quickly since the vote will take place on Tuesday, according to what Ms. Freeland said after having suggested that she is not trying to make them look bad.

“A small number” of Canadians affected

Currently, Canadians who realize capital gains, typically from the sale of an asset like stocks or rental housing, only pay tax on half of the profit. The motion proposes to increase this inclusion rate to two-thirds for the portion exceeding $250,000. The sale of a principal residence is — and would remain — tax exempt.

“For example, a couple who owns a rental property will pay no additional tax on the first $500,000 of profits from a sale,” Freeland illustrated.

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The minister insisted that the tax measure will lead “a small number” of “well-off” Canadians to pay “a little more” in taxes. Shortly after tabling the budget, Prime Minister Justin Trudeau told his caucus that he was aiming for “the ultra-rich” to pay “their fair share”.

In fact , Ottawa calculates that the measure will affect 0.13% of the population and that it will generate revenues of $19.4 billion over five years.

The cabinet of Conservative leader Pierre Poilievre had not responded to questions from The Canadian Press at the time of publication. They aimed to find out if the Conservatives are in favor of the measure and if their leader or their finance spokesperson could answer questions from journalists.

To the Bloc Québécois , Joanie Riopel, spokesperson for leader Yves-François Blanchet, indicated that the political party is studying the motion and that it is not in a position to comment at the moment.

By removing the measure from the budget bill, the Liberals are forcing these two adversaries to reveal the depths of their thinking.

Although this is a pivotal moment, the vote Tuesday is just the first step in the legislative process to change the tax law. A Liberal source, who was not authorized to speak publicly, indicated that the government plans to publish a legislative proposal this summer and then a bill.

Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116