For immediate release: June 10, 2024
OTTAWA— Canadians for Tax Fairness welcomes the government’s motion to introduce changes to the taxation of capital gains, noting that many economists and civil society organizations have been calling for the closure of the capital gains tax loophole for over a decade.
“The tax break on capital gains is grossly unfair for a vast majority of Canadians who depend on their wages to build a life,” stated Katrina Miller, Executive Director of Canadians for Tax Fairness (C4TF). “This is about everyone paying their fair share back into the communities we all live in.”
Some investors and other groups who benefit from the tax loophole have raised unfounded fears of economic impact. A recent report by C4TF found that raising the capital gains inclusion rate has no correlation with economic productivity and that there is no evidence internationally that having tax breaks on capital gains improves a country’s economic outlook.
“Our economic sustainability depends on maintaining a livable and stable society, and a fair tax system is a critical building block,” commented Miller. “We applaud the government for taking this important step towards that goal.” The government’s proposal to reduce the capital gains loophole will impact only 0.13% of Canadians and will generate $19.4 billion in revenue over five years, funding that can go towards affordable housing and improving healthcare.
Media contact:
Erica Shiner
Communications Coordinator
Canadians for Tax Fairness
erica.shiner@taxfairness.ca
