Canadian Prime Minister Justin Trudeau's government announced Tuesday it would impose tax increases on the wealthiest Canadians as part of the federal budget.
The budget proposal proposes raising the capital gains tax rate, which is the percentage of profits from the sale of assets that are subject to tax.
The taxable portion of capital gains over CAD 250,000 (US$181,000) will be increased by half to two-thirds, but the federal government will only affect 0.1% of Canadians and pay CAD 20 billion (US$181,000) over five years. The project is expected to generate revenue of nearly US$14.5 billion. .
“I know there will be a lot of outcry. No one likes paying more taxes, even or perhaps especially those who can afford it the most,” Cristia・Finance Minister Freeland said.
“But before they complain too hard, I want one per cent of Canada, 0.1 per cent of Canada, to think about this: 'What kind of Canada do you want to live in?'
Freeland presented a federal budget that promises C$53 billion (US$38 billion) in new spending focused on economic justice for young people.
Freeland denied that his latest budget was primarily a political exercise, but said that for Canadians under 40 it's “just harder to establish yourself” than previous generations. He admitted that “only.”
Freeland proposed a budget that would cap the federal deficit at C$40 billion (US$29 billion).
Prime Minister Trudeau's Liberal government is trailing in opinion polls amid concerns about the cost of living in Canada.
“This budget does little to improve the Liberal Party's prospects. They're going to lose, and they know it,” said Nelson Wiseman, a political science professor at the University of Toronto. “Their only hope is that Prime Minister Justin Trudeau steps down and a new Liberal leader is elected. And even then it will be difficult for them to win.”
