Conservative Party Leader Pierre Poilievre says he will reverse Liberal-led changes to capital gains taxation should his party form government after this year鈥檚 federal election.
As part of its 2024 budget, the federal government announced plans to from one-half to two-thirds for capital gains 鈥� profit earned from the sale of assets such as stocks, bonds, precious metals and real estate 鈥� of over $250,000 per year for Canadians and on all capital gains for corporations and most types of trusts.
The new inclusion rate , though legislation to make it law has yet to be passed.
Capital gains up to $250,000 continue to be taxed at the 50 per cent inclusion rate, while gains from the sale of one鈥檚 primary residence remain exempt from taxation.
The Liberals promoted the change as one that would make the country鈥檚 tax system fairer by making taxation more 鈥渋ncome-neutral,鈥� narrowing the 鈥渢ax advantage between capital gains and other forms of income, particularly paycheques.鈥�
Earlier this week, Conservative Shadow Finance Minister Jasraj Singh Hallan and Shadow National Revenue Minister Adam Chambers sent a letter to the Minister of Finance, Dominic LeBlanc, calling on him to cancel the government鈥檚 鈥渓awless鈥� capital gains tax increase, or at least direct the Canada Revenue Agency to stop collecting the tax until after this year's election, which must by law happen on or before Oct. 20.
Speaking at a press conference in Delta Thursday morning (Jan. 16), Poilievre pledged his party would reverse changes to the capital gains tax, saying they鈥檙e driving billions of dollars out of the country at a time when U.S. president-elect Donald Trump is threatening 25 per cent tariffs on Canadian goods.
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"This is a tax on home builders when we have a housing shortage, a tax on doctors when we have a doctor shortage. It is a tax on small business when we have an economic crisis. It's a tax on farmers when we have a food price crisis. And it will send billions of dollars away," Poilievre said, citing a Jan. 9 that estimates increasing the capital gains inclusion rate will cause Canada鈥檚 GDP to fall by nearly $90 billion, decrease the country鈥檚 per-capita GDP by three per cent and result in the loss of 414,000 jobs, mostly within the next five years.
To make up for the revenue lost by 鈥渁xing the Liberal jobs tax鈥�, the Conservatives plan to cut 鈥渢axpayer-funded corporate welfare and handouts,鈥� saying in a Thursday press release that subsidies to "big, politically powerful corporations" have "proven to be completely wasteful."
In his speech, Poilievre also said he would implement a "Bring it Home" tax cut that would "reduce taxes on work, investment, making stuff, building homes and energy, so that we can bring home more powerful paychecks and production to Canada."
"Now, more than ever, we need it. President Trump has said that he wants to tariff our country. We cannot afford economically destructive Liberal taxes that will drive even more business and jobs out of our country. We need to stand strong," Poilievre said.
"My message to President Trump is this: Canada will never be the 51st state. And not only that 鈥� the free ride is over. The era of Liberal tax increases and anti-development policies that have driven a half-trillion dollars of our money south of the border is over. I will be cutting taxes, removing red tape and unleashing free enterprise to bring home hundreds of billions of dollars of production and paycheques to this country."
In response to Poilievre鈥檚 announcement, NDP critic for tax fairness Niki Ashton released a statement calling the plan a 鈥渢ax break for [the Conservatives鈥橾 billionaire buddies.鈥�
鈥淟ast night, Conservative Leader Pierre Poilievre held a fundraiser for millionaires in an I-scratch-your back-you-scratch-mine event, and today he announced that he will give a tax break to his ultra-rich buddies by lowering the capital gains tax 鈥� another tax break only for the ultra-rich,鈥� Ashton said.
鈥淧ierre Poilievre is not on your side. If you are not a CEO, not a millionaire or billionaire, Pierre Poilievre doesn鈥檛 work for you. He will cut your pension, cut your health care, and cut your childcare to put more money in the pockets of the ultra-rich.
鈥淎t a time of rampant inequality, including severe generational inequity, we need more tax fairness, not less.鈥�
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