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Coronavirus: What's happening in Canada and around the world April 28 – CBC.ca

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The latest:

A day after outlining a plan to allow children to return to daycares and primary schools in May, Quebec Premier François Legault laid out his plans Tuesday to begin reopening some businesses in the province.

Over the course of the month of May, three sectors will be allowed some degree of reopening. They are:

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  • Retail stores not in shopping malls.
  • Retail stores that are in malls but have a direct door to the outside.
  • Construction and civil engineering.
  • Manufacturing.

Stores outside of the Montreal region will be permitted to reopen May 4, while those in the Montreal area will reopen May 11.

Construction projects, including road work, will fully resume May 11, with about 85,000 workers expected to be back to work.

Manufacturing companies will be allowed to reopen May 4 with some restrictions: those that have 50 or fewer workers will be allowed to reopen with full staff; those with more than 50 employees will only be allowed to have 50 workers plus 50 per cent of the total number of employees above that for any shift throughout the day.

Construction projects in Quebec will be able to resume in May under the province’s plan to reopen parts of the province’s economy. (Ryan Remiorz/The Canadian Press)

Legault said the idea is to reopen gradually and follow up to ensure there is no negative impact on infection rates or on hospitals.

And he said people will have to continue to follow physical distancing measures.

“Continue to act as if everybody you meet has the virus.”

WATCH | Legault says the plan is to restart the economy without restarting the pandemic: 

Quebec Premier François Legault outlined his government’s plan to reopen the Quebec economy and says physical distancing will continue to be necessary. 1:24

Legault on Monday announced a plan that would allow children in daycare ​​​​and primary school in most parts of Quebec to head back to class on May 11 — though attendance won’t be mandatory. Daycares and primary schools in the Montreal area would open on May 19.

High schools, CEGEPs and universities will reopen in the fall, Legault said, noting that officials felt primary-aged schoolchildren would benefit the most from additional weeks of class time.

“We will analyze the situation every day and adjust if necessary,” he said. “The watchword here is prudence.”

The province’s top doctor was quick to note that the easing of some restrictions did not mean that people should stop following public health measures and move around widely. 

Prime Minister Justin Trudeau on Tuesday said that the federal government would soon be releasing shared guidelines on how to handle reopening.

“We need common guidelines to make sure that the decisions being taken across the country are grounded in a shared understanding and appreciation of what science and experts are telling us.” 

The shared principles, which Trudeau said have been agreed to by the federal, provincial and territorial governments, won’t provide specific dates or measures. Instead, they will serve as a framework around what needs to happen before the economy is gradually restarted.

Federal health officials update projections

Trudeau spoke ahead of a Tuesday afternoon briefing from federal health officials, who delivered revised modelling and forecasts for COVID-19 in Canada.

Dr. Theresa Tam, Canada’s chief public health officer, said that ongoing public health measures, including physical distancing, are critical to staying at the lower end of projections.

“We are making clear progress to slow the spread and bring the epidemic under control thanks to the commitment of Canadians who are following public health advice to protect themselves and others,” she said.

The new modelling shows that while the number of new cases was doubling every three days previously, it is now doubling every 16 days.

Short-term projections predict between 53,191 and 66,835 cases by May 5, and between 3,277 and 3,883 deaths by that date.

Tam said the way the epidemic is unfolding varies across the country, “so when and how control measures are readjusted and are relaxed will need to be decided based on the local epidemiological situation.”

WATCH | Dr. Tam explains what goes into decisions about reopening schools and businesses:

Canada’s chief public health officer, Dr. Theresa Tam, talks about jurisdictions choosing to loosen public health measures to reopen certain facilities, including schools. 2:36

She said the new projections reflect the “heavy toll” COVID-19 is taking on vulnerable populations, including the elderly in long-term care homes and the homeless, and that relaxing controls too quickly will “squander” the efforts to date and put the population at risk of another wave of infection.

“We are actually going to be living with COVID-19 for the near future — and monitoring very carefully, so if there’s any upswing … any cases and contacts have to be identified and managed so you don’t get that upswing again.”

When asked whether he would send his own kids back to school if he were in Quebec, Trudeau said he would evaluate the situation at the time when schools actually open their doors.

“We know every single week we see changes in how we’re doing, on where there are outbreaks, on equipment and supports available,” he said, noting that he’d want to know what the school itself was planning to do to maintain physical distancing and create safe working conditions.

WATCH | Trudeau talks about Quebec’s plan to reopen some schools:

Prime Minister Justin Trudeau spoke with reporters on Tuesday. 1:54

Neighbouring New Brunswick, which has had far fewer cases than Quebec, has already loosened some restrictions, including opening some outdoor spaces and allowing people to form “bubbles” of two families.

Prince Edward Island released its plan Tuesday to ease restrictions. Priority non-urgent health-care services are to begin May 1, including elective surgeries, physiotherapy, optometry and chiropractic treatment. Outdoor gatherings of limited size and activities such as fishing and golf will also be allowed.

Saskatchewan has also previously released a five-phase reopening plan, with expected dates attached to the first two phases.

Ontario plan focuses on how not when

Ontario, which unveiled its plan on Monday, didn’t attach any dates to its framework.

Premier Doug Ford said the framework is about how the province will reopen — not when.

“We’re all missing birthdays, religious celebrations and once-in-a-lifetime milestones. These are all too real, a painful loss of memories, and moments taken away by this deadly virus,” Ford said. “But that is why we must continue.” 

A slow, methodical and gradual reopening will help the province avoid another period of shutdown, Ford said.

WATCH | Ontario reveals reopening plan, no timeline:

Ontario Premier Doug Ford revealed details of how the province would reduce COVID-19 restrictions and reopen businesses, but without giving any specific timeline. 1:54

Ford said he wants to see the economy “get going” but can’t risk an escalation in cases if the province opens prematurely.

As of 8 p.m. ET on Tuesday, Canada had 50,026 confirmed and presumptive cases of the novel coronavirus. Provinces and territories listed 19,244 cases as recovered or resolved. A CBC tally of COVID-19-related deaths, which is based on provincial health data, local public health information and CBC reporting, listed 2,958 deaths in Canada and two abroad.

A case tracking site maintained by U.S.-based Johns Hopkins University reported more than three million cases around the world, with over 212,000 reported coronavirus-related deaths.

There is no proven treatment or vaccine for the novel virus, which first emerged in China in late 2019. While most cases are moderate or mild, some people — especially the elderly and people with underlying health issues — are at greater risk of severe disease or death. Public health officials in Canada and around the world have cautioned that reported numbers don’t show the full picture, as they don’t reflect people that haven’t been tested or cases that are still under investigation.

Read on for a look at what’s happening in Canada, the U.S. and around the world.

What’s happening in the provinces and territories

In British Columbia, a COVID-19 outbreak in a poultry processing plant in Coquitlam is responsible for the majority of new cases reported by the province. Health Minister Adrian Dix says 39 of the 55 positive tests reported Tuesday are connected to the spread of the virus at Superior Poultry Processors Ltd. Read more about what’s happening in B.C., including a story about how Haida Gwaii communities are ramping up enforcement of a ban on visitors.

Alberta Premier Jason Kenney says a plan to reopen the province’s economy is coming later this week. The province released new modelling data on Tuesday, estimating that 298 Albertans will be in hospital and 95 of them will be in ICU when the virus peaks, down from an earlier estimate that more than 800 would be hospitalized. Read more about what’s happening in Alberta.

Saskatchewan released new modelling numbers Tuesday that show lower projections in the number of COVID-19 cases and deaths for the province. As a result, the Saskatchewan Health Authority will reduce the number of hospital beds, intensive care beds and ventilators it plans to make available. Read more about what’s happening in Saskatchewan.

Manitoba says it will now test anyone with COVID-19 symptoms to see if they have the virus that causes the disease. Premier Brian Pallister says even people with mild symptoms, such as a runny nose or cough, can be tested. “What we’re looking to do by broadening the intake here, at least in its early days, is focused on giving … Manitobans that confidence that they need to have that they’re not carrying the disease — that when they move around, when they shop, they’re able to do so safely,” he said at a Tuesday morning news conference. Read more about what’s happening in Manitoba.

Ontario reported 525 new COVID-19 cases Tuesday, and 59 more deaths, ending three consecutive days of declining numbers of new cases. Hospitalizations went up, but the numbers of people in intensive care and on ventilators declined slightly.  Read more about Ontario’s plan to reopen released earlier in the week.

In Quebec, Legault says while the number of deaths have risen in long-term care homes, other deaths remain largely stable in the province. He says that’s why the government is moving ahead with a plan to restart the economy and reopen primary schools and daycares. Read more about what’s happening in Quebec, including a story on the province’s push to do more testing.

WATCH | Parents wonder how to keep kids healthy when school resumes:

A pediatrician is worried that sending kids back to school too soon could undo all of the work that has been done to prevent the coronavirus from spreading. 4:06

New Brunswick’s chief medical officer says it’s possible masks become mandatory in some situations as the province moves forward with its reopening plan. “It’s very important that you get used to wearing masks,” Dr. Jennifer Russell said. Read more about what’s happening in N.B.

Nova Scotia is “on the downward slope” of the COVID-19 epidemiologic curve, the province’s top doctor said. Dr. Robert Strang told CBC’s Information Morning on Tuesday, but health officials are still concerned about community clusters. Schools will stay closed until at least the May long weekendRead more about what’s happening in N.S.

Prince Edward Island camps say it’s not yet clear if the summer season will happenRead more about what’s happening in P.E.I., including an update on the timing of the shellfish season.

Newfoundland and Labrador reported no new coronavirus cases again on Tuesday. The province is still working on a reopening plan. “It’s really important that we do it right, and when we are ready we will make that announcement, and it will be soon,” Chief Medical Officer of Health Dr. Janice Fitzgerald told reporters. Read more about what’s happening in N.L..

WATCH | Why Canada’s top doctor changed her stance on masks:

Part 2 of 3 of Rosemary Barton’s exclusive interview with Chief Public Health Officer Dr. Theresa Tam about Canada’s response to the COVID-19 pandemic. 3:07

In Nunavut, the government is banning gatherings of more than five people who don’t live together, while the Northwest Territories is tightening its border.  Read more about what’s happening across the North.

What’s happening in the U.S.

From The Associated Press and Reuters, updated as of 2:45 p.m. ET

U.S. President Donald Trump defended his administration’s handling of the coronavirus pandemic Tuesday as he met with Florida Gov. Ron DeSantis and promised to help states safely begin reopening their economies.

Trump, seated next to DeSantis in the Oval Office, insisted that the United States was doing enough testing to protect Americans reentering the workforce and said he would sign an executive order to address “liability problems” in the nation’s food supply chain. He said the administration was talking to airlines about requiring temperature and virus checks for some travellers as they board flights.

Trump has claimed for weeks now that airlines have been screening passengers, even though they’re not.

And he said the idea of having passengers wear masks sounded “like a good idea.”

U.S. President Donald Trump listens as Florida Gov. Ron DeSantis talks about the coronavirus response during a meeting Tuesday in the Oval Office. (Evan Vucci/The Associated Press)

The administration had been sharply criticized for not overseeing widespread testing, but Trump said no amount would ever be good enough for critics in the media.

Florida, with a high population of older Americans vulnerable to the disease, has long been a source of concern, and DeSantis was slower to impose social distancing guidelines than other governors were. But DeSantis, a fellow Republican and close Trump ally, promoted his state’s ability to test its citizens.

According to the Johns Hopkins database, the U.S. surpassed one million cases Tuesday, with more than 57,000 deaths. 

What’s happening around the world

From The Associated Press and Reuters, updated at 4 p.m. ET

Italy’s Premier Giuseppe Conte says the risk of a second wave of COVID-19 “is concrete,” as the country moves into a new phase of living “alongside” the coronavirus with the loosening of some lockdown measures starting next Monday. Conte has been visiting some of the hardest-hit communities in the northern region of Lombardy in a sign of institutional support for the sacrifices of medical personnel and solidarity with citizens in their eighth week of total lockdown. The virus continues to spread in Italy, in particular in the north.

Commuters maintaining distance sit next to seats with stickers reading “Please don’t sit here” and “Respect social distancing” in an underground metro line in Milan Tuesday. (Miguel Medina/AFP via Getty Images)

Spain’s Prime Minister Pedro Sanchez says he hopes his country can scrap restrictions on movement by the end of June but warned the path to loosening limits will lead to a “new normal,” with safeguards such as wearing masks and strict hygiene rules staying in place until a vaccine is found. Spain recorded 301 new deaths, official data released on Tuesday show, bringing the total deaths from COVID-19 to 23,822. The country has 210,773 infections of COVID-19 that have been confirmed by the most reliable lab tests.

People queue as they wait to donate blood, at a Red Cross urgent blood drive, as efforts continue to help slowing the spread of the coronavirus disease in Spain. (Jon Nazca/Reuters)

Turkey’s health minister announced 92 new deaths from the coronavirus in the past 24 hours, raising the total death toll in the country to 2,992. Fahrettin Koca also reported 2,392 new confirmed infections, bringing the total to 114,653. At least 38,809 COVID-19 patients have recovered, according to data the minister posted on Twitter, including 5,018 who recovered in the past 24 hours. Turkish officials say that the number of daily infections is stabilizing and that the country could transition to normal life after a religious holiday at the end of May.

Employees of Ankara Metropolitan Municipality youth center sews face masks, in Ankara, Turkey Tuesday. (Adem Altan/AFP via Getty Images)

Britain is ramping up its coronavirus testing efforts. Health Secretary Matt Hancock says anyone over 65 and their households, and all workers who must leave their homes to work, are now added to the list of those eligible for tests as long as they show symptoms.  All hospital patients and staff, as well as nursing home residents and workers, also qualify even if they have no symptoms. Britain is on track to record one of the worst coronavirus death tolls in Europe, after data published on Tuesday showed that fatalities topped 24,000 nine days ago.

Staff at the Mater hospital in Belfast, Northern Ireland observe a minute’s silence Tuesday to pay tribute to the National Health Service staff and key workers who have died during the coronavirus outbreak. (Peter Morrison/PA via AP)

In France, lawmakers on Tuesday adopted a government-proposed plan to ease the country’s lockdown, which has been in place since mid-March to curb the spread of the novel coronavirus. The plan entails the progressive reopening of schools, public transport and other businesses previously deemed non-essential by the government from May 11. However, restaurants, cafes, cinemas and concert halls will remain closed. Public gatherings will be limited to 10 people at a time.

A French doctor wearing a protective suit checks the temperature of a woman in a testing site for COVID-19 in Gouzeaucourt, France Tuesday. (Pascal Rossignol/Reuters)

Russia President Vladimir Putin has extended the nation’s partial economic shutdown through May 11, saying the coronavirus outbreak is yet to reach a peak. Lockdowns imposed by Russian regions have kept most people, except those working in vital industries, at home. Russia has recorded 93,558 coronavirus cases and 867 deaths. Putin has  instructed the government to prepare a plan for gradually lifting the lockdown after May 11.

A medical worker wearing protective equipment waits near ambulances, standing in line to deliver patients suspected of being infected with the coronavirus to the admissions department at the Pokrovskaya hospital in St. Petersburg, Russia, Tuesday. (Dmitri Lovetsky/The Associated Press)

In New Zealand, surfers greeted a spectacular sunrise in Christchurch, construction workers purchased their favourite espresso coffees, and some lawmakers returned to Parliament in Wellington on Tuesday, as some aspects of life began returning to normal. The country had been in a strict lockdown for over a month to prevent the spread of the coronavirus, but those conditions were eased a little on Tuesday to allow some parts of the economy to restart as new infections wane. New Zealand recorded three new cases of the coronavirus on Tuesday, bringing its confirmed total to 1,472, including 19 deaths.

Prime Minister Jacinda Ardern says New Zealand has ‘won the battle’ against the virus but plans a careful, staged return to normal life. 1:23

Hong Kong reported no new coronavirus cases for a third straight day Tuesday and announced a resumption of public services next week and a relaxation of quarantine restrictions on travellers from mainland China. The eased quarantine will apply to students crossing the border daily to attend school in Hong Kong, and travellers deemed economically important to the city. However, an entry ban on non-residents flying into the city has been extended to June 7.

Worshipers wearing face masks to protect themselves from preventing the spread of coronavirus, pray to the King ghost on the outlying Cheung Chau island in Hong Kong to celebrate the Bun Festival Tuesday. (Kin Cheung/The Associated Press)

South Africa — the world’s largest producer of platinum, manganese and chrome ore — is letting its mines run at half-capacity after a national lockdown. The country’s miners are restricting bus loads to mine sites to 20 workers at a time, even though the cages used to transport workers underground hold up to 1,000. 

South Africa has more than 4,700 cases and 90 deaths, according to a Johns Hopkins tally.

A man in protective clothing addresses locals queueing ahead of food distribution in Alexandra township, South Africa Tuesday. (Siphiwe Sibeko/Reuters)

In Peru, prisoners staged a riot to protest their precarious living conditions following the deaths of several fellow inmates from the new coronavirus, but the revolt in itself proved fatal. Nine prisoners were killed. The inmates were shot to death during a clash with authorities at the Miguel Castro Castro prison in Lima a day earlier. Who fired the deadly shots was under investigation. Peru’s overcrowded jails have been hard hit by the coronavirus: At least 13 prisoners have died and more than 500 have been infected. More than 100 workers have also fallen ill.

Inmates hold a sign that reads in Spanish “We want COVID-19 tests, we have the right to live”,” as they gather on a roof during a prison protest at Lurigancho prison in Lima, Peru, Tuesday. (Rodrigo Abd/The Associated Press)

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Fires in Happy Valley-Goose Bay under control with no current risk of explosion – CBC.ca

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A burnt out airport hangar is in ruins.
Firefighters battled a blaze at a former airport hangar in Happy Valley-Goose Bay overnight Friday. In a statement released Saturday morning, the RCMP says the fire is now under control. (Submitted by RCMP)

A statement released Saturday morning from Happy Valley-Goose Bay RCMP says the fires in the town and on the Canadian Forces Base are now under control and there is no risk of explosion.

As well, Mayor George Andrews announced that the state of emergency has been lifted and evacuated residents are now permitted to return to their homes. 

“We implore the general public to remain away from the area as we have firefighters and other first responders at the scene in the coming hours and days,” Andrews said.

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“And we just ask the public not to engage in any activity up around the Canadian side,” he said, referring to the North side of the community.

The police say firefighters battled the blaze, which caused extensive damage to a number of commercial structures, throughout the night. No one was injured.

A fire broke out in a former airport hangar in Happy Valley-Goose Bay late Friday, which sparked a number of explosions as well as an evacuation and an official state of emergency.

Andrews says the fire department was assisted by a number of groups, including the military.

“Early this morning our firefighters stood down a little,” Andrews told CBC News on Saturday. “We have a crew here who are battling some hotspots.”

“This looks to me to be a predominantly clean up site,” Andrews said, regarding the damage caused by the fire. “Now, we will be probably on-site here for a number of days because of just the sheer heat and things within that old hanger. If you can imagine, this is a huge old military aircraft hanger.”

“The fire started in a couple of buildings that were on the back of an old hanger that sits at the airfield on the north side,” said Andrews. “It caused the the hanger that was next door to be engulfed… That hanger is not there anymore.”

Andrews said it’s too early to determine what caused the fire.

“This was a huge, huge effort on behalf of all our emergency services which were engaged and our crews fought very hot, very uncomfortable conditions through the night,” he said.

Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Click here to visit our landing page.

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

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The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain – CBC.ca

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A chorus of Canadian entrepreneurs and investors is blasting the federal government’s budget for expanding a tax on the rich. They say it will lead to brain drain and further degrade Canada’s already poor productivity.

In the 2024 budget unveiled Tuesday, Finance Minister Chrystia Freeland said the government would increase the inclusion rate of the capital gains tax from 50 per cent to 67 per cent for businesses and trusts, generating an estimated $19 billion in new revenue.

Capital gains are the profits that individuals or businesses make from selling an asset — like a stock or a second home. Individuals are subject to the new changes on any profits over $250,000.

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The government estimates that the changes would impact 40,000 individuals (or 0.13 per cent of Canadians in any given year) and 307,000 companies in Canada.

However, some members of the business community say that expanding the taxable amount will devastate productivity, investment and entrepreneurship in Canada, and might even compel some of the country’s talent and startups to take their business elsewhere.

WATCH | The federal budget hikes capital gains inclusion rate: 

Federal budget adds billions in spending, hikes capital gains tax

3 days ago

Duration 6:14

Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.

Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.

“There were definitely some other stars in the budget that were interesting,” he said. “However, the … capital gains piece really is the sun, and it’s daylight. So this is really the only thing that innovators can see.”

The CCI has written and is circulating an open letter signed by more than 1,000 people in the Canadian business community to Trudeau’s government asking it to scrap the tax change.

Shopify CEO Tobi Lütke and president Harley Finkelstein also weighed in on the proposed hike on X, formerly known as Twitter.

Former finance minister Bill Morneau said his successor’s budget disincentivizes businesses from investing in the country’s innovation sector: “It’s probably very troubling for many investors.”

Canada’s productivity — a measure that compares economic output to hours worked — has been relatively poor for decades. It underperforms against the OECD average and against several other G7 countries, including the U.S., Germany, U.K. and Japan, on the measure. 

Bank of Canada senior deputy governor Carolyn Rogers sounded the alarm on Canada’s lagging productivity in a speech last month, saying the country’s need to increase the rate had reached emergency levels, following one of the weakest years for the economy in recent memory.

The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.

A challenge for investors, founders and workers

The change could have a chilling effect for several reasons, with companies already struggling to access funding in a high interest rate environment, said Bergen.

He questioned whether investors will want to fund Canadian companies if the government’s taxation policies make it difficult for those firms to grow — and whether founders might just pack up.

The expanded inclusion rate “is just one of the other potential concerns that firms are going to have as they’re looking to grow their companies.”

A man with short brown hair wearing a light blue suit jacket looks directly at the camera, with a white background behind him.
Benjamin Bergen, president of the Council of Canadian Innovators, said the proposed change could have a chilling effect for several reasons, with companies already struggling to access and raise financing in a high interest rate environment. (Submitted by Benjamin Bergen)

He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm’s stock options grow in value.

But Lindsay Tedds, an associate economics professor at the University of Calgary, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country’s talent has been overstated.

“This is not a major innovation-biting tax change treatment,” Tedds said. “In fact, when you talk to real grassroots entrepreneurs that are setting up businesses, tax rates do not come into their decision.”

As for productivity, Tedds said Canadians might see improvements in the long run “to the degree that some of our productivity problems are driven by stresses like housing affordability, access to child care, things like that.”

‘One foot on the gas, one foot on the brake’

Some say the government is sending mixed messages to entrepreneurs by touting tailored tax breaks — like the Canada Entrepreneurs’ Incentive, which reduces the capital gains inclusion rate to 33 per cent on a lifetime maximum of $2 million — while introducing measures they say would dampen investment and innovation.

“They seem to have one foot on the gas, one foot on the brake on the very same file,” said Dan Kelly, president of the Canadian Federation of Independent Business.

WATCH | Could the capital gains tax changes impact small businesses?: 

How could capital gains tax increases impact Canadian small businesses? | Power & Politics

2 days ago

Duration 12:18

Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.

A founder may be able to sell their successful company with a lower capital gains treatment than otherwise possible, he said.

“At the same time, though, big chunks of it may be subject to a higher rate of capital gains inclusion.”

Selling a company can fund an individual’s retirement, he said, which is why it’s one of the first things founders consider when they think about capital gains.

LISTEN | What does a hike on the capital gains tax mean?: 

Mainstreet NS7:03Ottawa is proposing a hike to capital gains tax. What does that mean?

Tuesday’s federal budget includes nearly $53 billion in new spending over the next five years with a clear focus on affordability and housing. To help pay for some of that new spending, Ottawa is proposing a hike to the capital gains tax. Moshe Lander, an economics lecturer at Concordia University, joins host Jeff Douglas to explain.

Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says he was disappointed by the change — and that it sends the wrong message to Canadian industries like his own.

He wants to see the government commit to more tax credit proposals like the Canada Carbon Rebate for Small Businesses, which he said would incentivize business owners to stay and help make Canada competitive with the U.S.

“We’ve had a lot of difficulties attracting investment over the years. I don’t think this will make it any better.”

Tech titan says change will only impact richest of the rich

A man sits on an orange couch in an office.
Ali Asaria, the CEO of Transformation Lab and former CEO of Tulip Retail, told CBC News that the proposed change to the capital gains tax is ‘going to really affect the richest of the rich people.’ (Tulip Retail)

Toronto tech entrepreneur Ali Asaria will be one of those subject to the expanded capital gains inclusion rate — but he says it’s only fair.

“It’s going to really affect the richest of the rich people,” Asaria, CEO of open source platform Transformer Lab and founder of well.ca, told CBC News.

“The capital gains exemption is probably the largest tax break that I’ve ever received in my life,” he said. “So I know a lot about what that benefit can look like, but I’ve also always felt like it was probably one of the most unfair parts of the tax code today.”

While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren’t the most major problem.

“I think that the biggest central issue to the reason why people will leave Canada is bigger issues, like housing,” he said.

“How do we make it easier to live in Canada so that we can all invest in ourselves and invest in our companies? That’s a more important question than, ‘How do we help the top 0.13 per cent of Canadians make more money?'”

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