Just as people started to give a sigh of relief because no changes were made to the way capital gains are going to be taxed, Finance Minister Bill Morneau has hinted that the idea shouldn’t be completely ruled out. When it comes to any changes to the profits from selling personal assets, the finance minister said that the door is still open to any changes that could be made in the next couple of days.
The 2017 budget has sparked quite a bit of controversy, ever since it has been rolled out by the Trudeau Administration, signalling that the budget plan was not all that perfect as it was being described by the Liberals. When asked about any future chances of a change being made to capital gains taxes, Morneau said that the government had deliberately not included that in the budget which was released just a few days ago. The finance minister also declined to talk about what he and his department would do in the future regarding the matter. In a recent interview with the Canadian Press, Morneau said that it would be hard to rule out any chances of changes being made to capital gains taxes in the coming days.
In the interview the minister went to great lengths to explain why he could not speculate on any tax changes that could be made. One of the reasons the minister gave was because it would affect investor behaviour. The question has piqued public interest since rumours of a possible increase in the capital gains taxes were being spread through the grapevine in Bay Street. According to the current tax rules, only half of the investor’s capital gains is included while calculating income tax. This rate has been speculated to increase by nearly two thirds or three quarters, which is going to be a huge difference.
Ensuring that the wealthy pay their taxes has been one of the main concerns of the current Trudeau-led Liberal government who raised the income tax in last year’s budget. It will be interesting to see which side the Liberals stand this time around.