The Canadian Federal Government’s 1971 decision to include capital gains in income as part of a sweeping change to the Canadian income tax system. Over the years, the taxation of capital gains has been normalized. The notion that capital gains should form a part of the tax base has largely been accepted, both in Canada and globally. Although certain exemptions have changed, the inclusion rate has generally remained stable, with only a few ups and downs between 1988 and 2000. With the onset of COVID-19 and the extensive support measures that the government has implemented in response to the pandemic, many have begun to wonder whether changes are coming to the capital gains system. Today as in the past, the government’s need to raise revenues is a key consideration. It remains to be seen whether there will be a significant change.
Situations exist where the cost of housing has escalated to such heights that The Federal Government cannot ignore the potential revenue raised by a double-digit tax upon the sale of your primary home. The government knows that there is little sympathy for those who own homes in Vancouver, Toronto, and Montreal, all of whom can be potentially millionaires once they sell their homes. The move towards taxing such homes may be short-sighted however. This tax will certainly raise funds for a spendthrift Liberal Administration, and it will be positively felt by progressives and wine glass socialists throughout our land. Should the federal government legislate such a tax, they must surely realize who will benefit from this and turn a social class against them in the process too. Who donates their wealth, time, and support to the Liberals and Conservative Parties? The very people this tax will offend and anger, the middle-class seniors, and the near wealthy
Canadians. These supporters may very well evaporate for the Liberals by transitioning to the conservatives or other parties. Many homeowners will escape this tax by simply not selling at this time. The housing shortage will continue to be a problem for Canadians.
The Liberal government cannot continue its spendthrift ways for very much longer. The Canadian Central Bank needs to bring inflation under control, and cannot do so as long as billions continue to be spent on pandemic relief and other projects. Our governments refuse to get involved in housing development directly, seemingly the only way that real affordable housing starts can be established throughout our land.
Steven Kaszab
Bradford , Ontario
[email protected]
