PBO estimates the capital gains tax change will raise $17.4 billion in revenue over five years

By The Canadian Press on August 1, 2024.

OTTAWA — The parliamentary budget officer estimates the Liberals’ capital gains tax hike will raise $17.4 billion in revenue over five years. That’s $2 billion less than the federal government forecast in its spring budget. The Liberal government proposed making two-thirds of capital gains — the profit made on the sale of assets — taxable instead of half. The proposal has been met with opposition from both business groups and doctors who expect to be hit by the change. Prime Minister Justin Trudeau has defended what is essentially a tax hike, saying it’s about delivering generational fairness to young people who need the government to spend more on things like housing. The tax hike went into effect June 25, though the legislation still needs to be approved by Parliament. This report by The Canadian Press was first published Aug. 1, 2024. 8
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