Understanding the Proposed Capital Gains Tax in Canada

Amidst the housing crisis in Canada, Premier Justin Trudeau has proposed a new Capital Gains Tax that could have a significant impact on the wealthiest individuals and corporations in the country. The tax, ranging from 50% to 67%, will target those with over $250,000 CAD in capital gains annually.

The government estimates that this change will primarily affect the top 0.13% of individuals and approximately 12% of corporations in Canada, with an average income of $1.42 million CAD. However, 99.87% of Canadians will not be affected by this adjustment, as it excludes the sale of primary residences.

The new tax is expected to generate $19.3 billion in revenue over the next five years, providing much-needed funds to address the housing crisis and other pressing issues in the country. Additionally, the tax will also impact the taxation of cryptocurrencies and stocks in Canada, with specific guidelines outlined for each asset class.

Overall, the proposed Capital Gains Tax represents a significant step towards addressing income inequality and ensuring that the wealthiest individuals and corporations contribute their fair share to the Canadian economy.