Tax cuts for economic growth in Canada
Conservative Party leader Pierre Poilievre has pledged to reverse the tax hike on capital gains introduced by the NDP-Liberal government in June 2024.
This tax increase, which raises the capital gains tax inclusion rate to 66%, has been widely criticized by economists who warn it could result in the loss of over 400,000 jobs. The agriculture industry was opposed to the tax.
Poilievre intends to eliminate the tax hike and offset the lost revenue by reducing taxpayer-funded corporate subsidies that have been plagued by inefficiency and scandal.
“Trudeau’s Chief Economic Advisor, Carbon Tax Carney, and former Finance Minister Chrystia Freeland supported this job-killing tax increase, which is further driving billions of dollars out of our country right as we face President Trump’s tariff threats,” said Poilievre when making the announcement. “This Liberal job and investment killing tax was a bad idea before President Trump’s tariff threat, it is outright insanity now.”
The tax increase, supported by figures like Justin Trudeau’s Chief Economic Advisor and former Finance Minister Chrystia Freeland, has sparked controversy. Critics argue that it will worsen Canada's economic challenges, including job losses and a reduction in investment. The tax is seen as particularly damaging at a time when Canada is facing external threats, such as the possibility of tariffs.
In addition to its negative impact on employment, the tax hike is predicted to drive up costs in several sectors. For example, it could make homebuilding more expensive during an ongoing housing crisis, push doctors to leave Canada amid a healthcare shortage, and increase food prices during a cost-of-living crisis.
The C.D. Howe Institute has estimated that the tax hike will result in a loss of 414,000 jobs and a $90 billion reduction in Canada’s GDP.
Poilievre's plan involves eliminating this tax increase and using the savings to cut wasteful corporate subsidies. He has criticized the NDP-Liberal government for funding projects that he views as wasteful, such as millions in subsidies for companies and initiatives with questionable outcomes.
By reversing the tax hike and cutting corporate welfare, Poilievre believes the government can promote growth, attract investment, and create jobs. His approach aims to stimulate the Canadian economy, bring jobs back home, and ensure a more prosperous future for the country.