Maverix’s Ruffolo Warns Trudeau of Capital Flight After Tax Hike

  • Tech investor says angel investors will focus on US startups
  • He warned the measure will be detrimental to productivity

John Ruffolo

Photographer: Harry Murphy/Sportsfile/Getty Images

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A prominent Canadian technology investor joined the chorus of Canadian businesses criticizing Prime Minister Justin Trudeau’s decision to raise the capital-gains tax, arguing it will cause capital flight from the country.

John Ruffolo, founder of tech-focused Maverix Private Equity in Toronto, said the government’s move to tax Canadian companies on two-thirds of their capital gains, up from the previous level of a half, will make it harder for innovative companies to raise money and drive investors south of the border.