Capital taxes reduce the incentive to innovate and invest.
capital gains
Inflationary gains represent a significant share of the capital gains Canadians are currently realizing.
If the government wanted to pay for new programs, it could’ve reduced spending in other areas.
Many Canadians who incur capital gains taxes, such as small business owners, may only do so once in their lifetimes.
The tax increase will reduce the return on investment and encourage an exodus of capital from the country.
The province had the third-lowest level of per-worker business investment in Canada.
Investors may delay selling capital assets because they anticipate a change in government and a reversal back to the previous inclusion rate.
Business investment (excluding residential development) is down 22.5 per cent.
These taxes also apply to Canadians with sporadic capital gains such as businessowners who sell their businesses.
Taxes on capital and income are the most damaging to the economy.