PBO estimates capital gains tax change will raise $17.4 billion in revenue over five years – Winnipeg Free Press

OTTAWA – The parliamentary budget officer estimates the Liberals’ capital gains rate hike will raise $17.4 billion in revenue over five years.

That is $2 billion less than the federal government predicted in its spring budget.

The Liberal government proposed making not half, but two-thirds of capital gains (the profit made on the sale of assets) taxable.

Parliamentary budget officer Yves Giroux waits to appear before the Senate Committee on National Finance, Tuesday, Oct. 17, 2023, in Ottawa. The parliamentary budget officer estimates the Liberals’ capital gains tax hike will raise $17.4 billion in revenue over five years. THE CANADIAN PRESS/Adrian Wyld

The proposal has faced resistance from both industry and doctors who expect the change to have consequences.

Prime Minister Justin Trudeau defended what is essentially a tax increase, saying it is about creating equal opportunities for young people, who have a vested interest in the government spending more on things like housing.