Raising capital gains taxes—a lot of economic pain for little revenue gain

Rumours abound that the Trudeau government may raise the capital gains tax in tomorrow’s federal budget so it’s critical for Canadians to understand that raising this tax will cause much economic pain for very little revenue gain.Capital gains taxes are applied to the sale of assets (such as a business or stocks) when the selling price exceeds the original purchase price. Canada currently taxes capital gains income, with some exemptions, at half of one’s marginal income tax rate and there is speculation this will be increased to three-quarters of one’s marginal tax rate in the budget. For someone living in

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