Posthaste: More Canadians say they'll take a capital gains tax hit than Ottawa thinks

One in five say tax change will cost them more over the next five years, poll finds

The federal government said a tenth of one per cent of Canadians will be affected by the hike to the capital gains tax inclusion rate coming down the pike.

Canadians, according to a recent poll, disagree.

One in five of those surveyed by Angus Reid Institute believe their after-tax income will take a hit as a result of the change over the next five years.

“Not unlike Canadians’ reactions over the last several months regarding the impact on their household wallets from carbon pricing and rebates, people in this country — and critically — the young people Liberals desperately need to woo back from the Conservatives and NDP – aren’t convinced an increase in the capital gains tax will make their lives more affordable or their opportunities more equitable,” said Angus Reid in its report.

Financial Post
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.

Sign In or Create an Account

or
View more offers
If you are a Home delivery print subscriber, unlimited online access is included in your subscription. Activate your Online Access Now

Canadians currently pay tax on 50 per cent of capital gains, or the profits they make on the sale of assets like secondary residences and investments. The change coming on June 25 will mean all corporations will pay tax on 66 per cent of capital gains and individuals will pay 66 per cent on any capital gains that exceed $250,000 in a single year.

Primary residences remain exempt.

The Liberals say the aim is to level the playing field between lower- and middle-income Canadians who earn their money mostly from their jobs and the wealthy, who earn more of their money from the sale of investments. The change was estimated to impact just 0.13 per cent of Canadians and 12.6 per cent of businesses.

The move, however, has been controversial. A host of business leaders and groups ranging from doctors to farmers have opposed the inclusion rate hike, saying it will add to the burden on the middle class, discourage investment and drag down the country’s already lagging productivity.

Half of the Canadians in the Angus Reid poll opposed the tax change, while one third supported it and the survey  suggests that the government’s “generational fairness” message is not getting through, said Agnus Reid.

Posthaste
Posthaste

Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

“In terms of selling this policy, there is a clear gap in communication from the Liberals to those who the government says will gain most from this change,” said the report.

Half of the people polled aged 18 to 34 said they’ve heard little or nothing about the capital gains tax change and 30 per cent said they don’t know if they support it or not. Uncertainty was also evident among the 35 to 44 age group.

Older generations were better informed — and more opposed. More than 55 per cent of people aged 45 to 54 are against it, and almost 60 per cent of those aged 55 to 64.

When broken down by income, more than 60 per cent of households with incomes higher than $200,000 a year oppose the higher inclusion rate, but 40 per cent of lower-income households are also against it.

“Another 27 per cent are unsure, suggesting the Liberal government’s communication on this file is not punching through,” said the report.

Politically, Liberal voters showed the most support at 58 per cent. Conservative supporters were 84 per cent against it.


 Sign up here to get Posthaste delivered straight to your inbox.


This map of China just before and just after the COVID-19 lockdown illustrates the connection between economic growth and pollution, say the team of strategists who put out BofA’s 2024 Investment Altas. “Societies want to combat climate change but also want jobs & prosperity.”

In a more recent example of environment vs commerce, BofA cites New York City’s decision to pause plans for a congestion charge. The $15 fee for drivers entering Manhattan would have been the first of its kind in the United States.


  • Today’s Data: United States current account balance, housing starts and building permits
  • Earnings: Algoma Steel Group Inc., Empire Co Ltd., Darden Restaurants Inc., Accenture PLC, Jabil Inc., The Kroger Co.



  • Sean Boyd built Canada’s largest miner. Now he’s fighting for the nation’s Arctic sovereignty
  • The CRA is watching how often you trade marketable securities in your TFSA



A Vancouver-based investment adviser who grew his TFSA balance from $15,000 to more than $617,000 in three years by trading penny stocks comes under CRA scrutiny. The CRA is watching how often you trade marketable securities in your TFSA


Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you wondering how to make ends meet? Drop us a line with your contact info and the gist of your problem and we’ll try to find some experts to help you out, while writing a Family Finance story about it (we’ll keep your name out of it, of course). If you have a simpler question, the crack team at FP Answers, led by Julie Cazzin, can give it a shot.


McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.


Today’s Posthaste was written by Pamela Heaven, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.


Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters financialpost.com.