Freeland warns of a dark future in Canada without a capital gains tax increase

In a bizarre speech outlining the government’s capital gains plan, Deputy Prime Minister Chrystia Freeland warned of citizens burning with anger.

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Chrystia Freeland warns that democracy is at stake if Canada does not increase its capital gains rate. Justin Trudeau’s deputy prime minister spoke Sunday about the cold and dark future that awaits Canada if this particular tax change is not implemented.

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“What kind of Canada do you want to live in?” Freeland asked, citing potential future scenarios.

“Do you want to be in a country where those at the top live luxurious lives, but have to do so in closed communities behind ever higher fences, using private healthcare and airplanes, because the public sphere is so degraded and the anger of the vast majority of their less privileged compatriots burns so hot?”

It was a bizarre way to portray a government plan to increase the capital gains rate from 50% to 66.67%.

Freeland clearly wants to paint this change in clear terms of class war. She portrayed those who will pay higher taxes after the changes as super-rich Canadians who currently pay lower taxes than teachers, nurses or plumbers.

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It’s Trudeau’s old Liberal plan: repeat the lie loud enough and often enough and people will believe you.

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“We estimate that only 0.13% of Canadians with an annual average income of $1.4 million in any given year will be affected by this change,” Freeland said.

That’s the Canada Revenue Agency’s estimate for people currently claiming large-scale personal capital gains. This proposal also applies to businesses, including small businesses.

If you’ve been paying attention in Ottawa lately, corporations are apparently the most evil entities out there for Canada’s political class. Yet businesses include small businesses like your doctor, your local dry cleaner, the franchised gas station or the convenience store you frequent.

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We’re talking about our friends, our families, our neighbors, people we used to consider middle class.

“The Canadian Medical Association (CMA) is deeply disappointed by today’s announcement,” said CMA presidents Dr. Joss Reimer and Dr. Kathleen Ross said in a statement.

They pointed out that GP practices are companies, founded by individual doctors, and that this is how they save for their pension, parental leave, sick days or increases in office rent. They have no company or government pensions to fall back on and much more is now being demanded.

“The proposed increase in the capital gains inclusion rate imposes yet another barrier to physician retention and recruitment as the first dollar of capital gains realized in a medical professional business will be subject to the higher 66.67% inclusion rate ,” they said.

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Is threatening the health care system with tax changes really a good idea?

Freeland thinks so, pointing out that it was Conservative Prime Minister John Diefenbaker who introduced the capital gains tax and that it was Brian Mulroney who raised it to a 75% withdrawal rate in 1988. Well, it was Liberal Prime Minister Jean Chretien who reduced the recording. in 2000, dropping it from 75% to 50%.

In his speech in October 2000, Finance Minister Paul Martin said the reduction in the capital gains rate was about creating a culture of innovation and entrepreneurship.

“If companies are going to invest, we want them to invest in Canada. If they want to create jobs, we want them to be created in Canada. If young people have opportunities, we want those opportunities to come here in Canada,” Martin said.

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The current Liberal government seems to believe that if investments are going to take place or jobs are going to be created, it should happen elsewhere.

The capital gains tax changes are not about fairness, they are about politics. They are trying to get the Conservatives to vote against them so that the Liberals can claim that Pierre Poilievre loves the rich and hates the poor.

In the meantime, doctors will scale back or close their practices if they don’t simply move. Companies looking to expand will look to countries other than Canada.

We will all be poorer and worse off in the name of fairness so that Trudeau can play political games with real and disastrous economic consequences.

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