Ottawa Unveils New Taxes On High-Income Earners
In the latest budget, the federal government of Prime Minister Justin Trudeau has introduced a series of new taxes on high-income earners to help fund social programs across Canada.
The Liberal government plans to increase taxes on capital gains for Canada's highest earners, which it says will add $19.30 billion to federal coffers over the next five years.
Specifically, the government is targeting the wealthiest 0.13% of Canadians by raising the capital gains inclusion rate for people who have more than $250,000 in capital gains in a year.
The rate will increase from one-half (50%) to two-thirds (67%) and will also apply to all capital gains realized by corporations and trusts.
The new tax is expected to impact 12% of Canada's corporations and Canadians with an average annual income of $1.42 million.
The Liberals government stressed that the tax change will not impact 99.9% of Canadians.
The new tax revenue will be used to fund a myriad of social programs across Canada, including housing for immigrants and low-income Canadians.
Read:
Multi-Billion-Dollar Offers Not Enough to Get Lithium Asset Owners to Bite for Mining Giants
The Future of Corporate Innovation Explores the Expanding Role of Artificial Intelligence
Navigating the Surge in Aquaculture: Opportunities & Challenges
Tech Sector’s AI Advancements Boosting Economic Momentum, Reshaping 90% of US Jobs
More Safe and Secure Lithium Being Sought by the World’s Auto Giants in EV Production
Ottawa has pledged to build nearly four million homes by 2031 at a cost to taxpayers of $8.5 billion.
The federal government announced a myriad of other social programs in their 2024-25 budget, including $1.5 billion over five years to launch a universal pharmacare plan and $6.1 billion for a new disability benefit.
In all, the 2024 federal budget includes $52.90 billion in new spending.
The new spending is largely being funded through deficits, with the federal budget deficit projected to reach $39.80 billion in the current 2024-25 fiscal year and hit $64.30 billion by 2028-29.