Personal income taxes and the capital gains tax

Numerous studies have demonstrated the high costs imposed on economies that maintain capital gains taxes, particularly those such as Canada that are relatively small and trade-oriented. The source of these costs is that capital gains taxes have especially strong effects on entrepreneurship, the foundation for successful, thriving economies. But why consider capital gains taxes when considering Canada’s personal income tax?Until 1972, capital gains were not taxed. For Canada’s first 105 years, we avoided taxing capital in part because as a small, developing country, we understood the need to attract investment. When the capital gains tax was introduced in January 1972,

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