Business groups warn that changes to capital gains could have irreversible effects – National

Business groups in Canada are sounding the alarm over Finance Minister Chrystia Freeland’s proposal to increase the country’s capital gains inclusion rate. In an open letter to Freeland, six of the largest industry organizations expressed concerns about the potential negative impacts of the proposed hike.

The letter, signed by heads of prominent business associations, warned that the increase in the capital gains inclusion rate could hinder economic growth and harm future generations. The groups argued that the measure would make Canada less competitive and innovative, limiting opportunities for all generations.

Freeland introduced the proposal as part of the federal government’s 2024 Budget, aiming to raise the inclusion rate for individuals realizing more than $250,000 in capital gains annually. While the move is intended to address Canada’s deficit, the business groups criticized it as shortsighted and divisive.

Despite the backlash, Freeland remains committed to implementing the capital gains tax changes by the planned June 25 date. The business groups highlighted the potential repercussions of the tax hike, including limiting job creation, stifling business growth, and reducing access to healthcare practitioners.

Medical associations have also raised concerns about the impact of the capital gain increase on the recruitment and retention of physicians in Canada. While Freeland emphasized the need for fairness and contribution from those who are doing well, critics argue that the tax change could have far-reaching consequences for all Canadians.

As the debate continues, the business groups are calling for a united approach to economic growth and prosperity in Canada. They emphasize the importance of considering the long-term implications of the proposed tax changes on the country’s economic opportunity and future generations.