.jpg)
2 hours ago
1
Chrystia Freeland would drop the Canadian government’s policy of raising the capital gains inclusion rate if she wins the race to replace Justin Trudeau as prime minister, according to a person with knowledge of her plan.
Author of the article:
Bloomberg News
Brian Platt
Published Jan 22, 2025 • 1 minute read
(Bloomberg) — Chrystia Freeland would drop the Canadian government’s policy of raising the capital gains inclusion rate if she wins the race to replace Justin Trudeau as prime minister, according to a person with knowledge of her plan.
Article content
Article content
It’s a major reversal for Freeland, who introduced that capital gains hike in April as Trudeau’s finance minister. She argued at the time that it was fair for the government to ask companies and investors to pay more to provide additional revenue for the government.
Advertisement 2
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, 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 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.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
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
Article content
The election of Donald Trump, who has promised to extend tax cuts implemented in his first term, has changed the situation. Freeland believes the tax hike no longer makes sense for Canada because of the risk that Trump’s nationalist policies — which also include tariffs and deregulation — draw investment away from its trading partners, said the person, speaking on condition they not be identified.
The tax change raised Canada’s inclusion rate from one-half to two-thirds on companies and on individual investors booking a gain of more than C$250,000 ($174,150) in a year. The government projected it would bring in more than C$19 billion over five years, with some of the revenue being used for housing measures and other social programs.
Freeland quit Trudeau’s cabinet in December, triggering a series of events that led the prime minister to announce his resignation on Jan. 6. She’s one of the leading candidates to succeed him.
Canada’s tax collection agency put the capital gains increase into effect after a preliminary motion was introduced in the House of Commons, but legislation to enshrine it in law has never been passed.
If Freeland wins the Liberal Party leadership race that’s scheduled to conclude March 9 and becomes prime minister, her government would not introduce that legislation, said the person.
Article content
English (US)