Poilievre comes out against changes to the capital gains tax, the liberal plan is adopted with support from other parties

Conservative Leader Pierre Poilievre and his party on Tuesday opposed the Liberals’ plan to raise Canada’s capital gains rate, in a vote that nevertheless passed with the support of the NDP and the Bloc Quebecois.

The motion, which paved the way for the Liberals to advance legislation to change Canada’s tax laws accordingly, cleared the House of Commons by a vote of 208 to 118.

To help offset billions in new spending on housing and social safety nets, Finance Minister Chrystia Freeland announced in April’s budget a coming increase in the amount of tax high earners must pay on the sale of assets or investments such as stocks and secondary properties .

This measure – which comes into effect on June 25 – will see the capital gains rate increase from 50 percent to 67 percent for individuals earning more than $250,000 in capital gains in a year, and for all capital gains realized by corporations and the most types of capital gains. of trusts.

While Conservatives spent weeks waffling on their position on the tax change — which is estimated to raise $19.4 billion over five years — the proposal was quickly criticized by business groups as a “short-sighted” way to improve the budget deficit. Doctors, entrepreneurs and farmers were among the critics.

The Liberals pushed back against these votes, claiming the changes will only affect the wealthiest 0.13 per cent, and about 12 per cent of Canadian businesses, as the existing capital gains exemption on primary residences will remain in place, while the lifetime exemption limits for small company shares will continue to exist. as well as agricultural and fishing properties are increasing.

Freeland opted to remove this major tax reform from the Budget Implementation Bill, forcing the Conservatives to come out with a clear position and now likely setting up a whole summer of bipartisan lines of attack.

Poilievre outlines the opposition

In a speech in the House of Commons just hours before declaring ‘no’, Poilievre outlined the reasons why the Conservatives are opposing the ‘gigantic job-killing tax on healthcare, homes, farms and small businesses’.

“He (Trudeau) wants to tax doctors when there is a doctor shortage. He wants to tax housebuilders when there is a housing shortage. He wants to tax farmers when there is a food price crisis, and he wants to tax small businesses when our economy is already shrinking,” Poilievre said.

“The good news is that if you’re a billionaire, you won’t pay it. The Prime Minister has given you two full months to sell your assets and get your money out of Canada to build a business south of the border, or somewhere far away.”

Poilievre also outlined on Tuesday what a Conservative government led by him would do differently, including setting up a “tax reform task force” within 60 days of becoming prime minister and designing a “bring it home tax cut.”

The Conservatives would also cut taxes on hiring and “making things,” simplify tax rules and “reduce the share of taxes paid by the poor and middle class, while reducing tax-funded corporate wealth and eliminating overseas tax havens take it hard,” he says. promised.

Show ‘true colours’, say liberals

Immediately after Poilievre made his position clear, the Liberals came out swinging, accusing the Conservatives of protecting Canada’s wealthiest by voting against tax fairness.

“If it had no real consequences for Canadians, it would be almost funny to see the Conservative leader tying himself in knots to try to justify voting in favor of benefits for wealthy Canadians when they sell off truly profitable investments ”, said the Prime Minister. said Justin Trudeau during question period.

“We are asking them to pay a little more so that we can invest more in housing for young people, so that they can have the same opportunities as previous generations.”

In a later conversation with a Conservative MP, Freeland called it an “important day for Canadians.”

“Because today, after eight weeks of truly undignified hesitation and deviation, the Conservatives have finally shown their true colors, and now we know what they really stand for. They had the opportunity to stand with the plumbers, with the welders, with the nurses, with the teachers, but they have decided that multi-millionaires should pay lower taxes than working Canadians,” she said.