canadian Prime Minister Justin Trudeau The government announced Tuesday it would impose higher taxes on the wealthiest Canadians as part of the federal budget.
The budget proposes to increase the inclusion rate for capital gains, which refers to the taxable portion of profits made on the sale of assets.
The taxable portion of capital gains above C$250,000 (US$181,000) would increase from half to two-thirds, which the federal government estimates would affect only 0.1% of Canadians and bring in nearly $20 billion. of Canadian dollars (14.5 billion US dollars) over five years. .
“I know that many voices will be raised in protest. No one likes paying more taxes, even – or perhaps especially – those who can most afford it. » » said Finance Minister Chrystia Freeland.
“But before they complain too bitterly, I would like Canada’s 1% – Canada’s 0.1% – to think about this: What kind of Canada do you want to live in?
Freeland presented the federal budget, which promises C$53 billion (US$38 billion) in new spending that she said is focused on economic justice for younger generations.
Freeland denied that his latest budget was primarily a political exercise, but nevertheless acknowledged that for anyone under the age of 40 in Canada, it is “simply harder to establish yourself” than for previous generations.
Freeland presented a budget that she said capped the federal deficit at C$40 billion (US$29 billion).
Trudeau’s Liberal government is lagging in the polls due to concerns about the cost of living in Canada.
“This budget will do little to improve the Liberals’ prospects. They will be defeated and they know it,” said Nelson Wiseman, a political science professor at the University of Toronto. “Their only hope is that Justin Trudeau steps down and a new Liberal leader is chosen. And even then, it would be difficult for them to prevail.”
