In a system of crony capitalism, firms and individuals compete for government favours rather than consumer dollars.
Higher capital gains taxes reduce the incentive for investment and entrepreneurship.
The Trudeau government sees the government itself as the driver of prosperity, and the private sector, including entrepreneurs, small business owners and investors playing a secondary role.
An estimated 2,158 new businesses will not startup in the province due to the higher tax rate.
B.C. recently raised its top personal income tax rate from 14.7 per cent to 16.8 per cent.
The share of Canadians between the ages of 30 and 39 has declined 16.6 per cent since the 1980s.