OTTAWA — Mark Carney’s victory in the Liberal leadership race puts the final nail in the coffin of Ottawa’s controversial plan to hike the inclusion rate on capital gains.
When they tabled their budget last spring, the federal Liberals presented the plan to change capital gains as a way to get wealthy Canadians and corporations to pay more — but the plan has faced a series of delays ever since.
Tax expert Jamie Golombek of CIBC says the capital gains changes are still causing “confusion” during this tax season, even though the higher inclusion rate won’t be in play.
Carney confirmed in his victory speech on Sunday that he would kill the planned capital gains hike.
The new rules would have seen Canadians pay more tax on capital gains earned over $250,000 in a year, while businesses would have paid the higher amount on all capital gains.
Tech leaders argue the capital gains hike discouraged entrepreneurs from taking risks and building their businesses in Canada.
Council of Canadian Innovators CEO Benjamin Bergen says the rollback of the capital gains change is a good move, but the damage has been done to Canada’s reputation in the tech sector.
This report by The Canadian Press was first published March 11, 2025.
Craig Lord, The Canadian Press