Tax & Spend
Capital Gains Hike to Yield Less Revenue Than Expected, Research Group Says
- Hike to add just C$3.3B to personal income tax revenues: group
- Trudeau government raised tax to fund housing, social programs
Justin Trudeau and Chrystia Freeland.
Photographer: David Kawai/BloombergThis article is for subscribers only.
Canada’s decision to increase the capital gains inclusion rate is unlikely to generate as much cash as Justin Trudeau’s government expects, a research group says.
The changes will add a net C$3.3 billion ($2.4 billion) to federal government revenues from individuals over five years, according to a paper being released Thursday by the C.D. Howe Institute.