Capital gains rate increase undermines competitiveness

Letter to the Honourable Chrystia Freeland, P.C., M.P., Deputy Prime Minister and Minister of Finance regarding the proposed changes to Canada’s capital gains tax.

Dear Deputy Prime Minister,

We are writing to add our voice to those more directly affected by proposed changes to Canada’s capital gains tax as announced in your recent budget. Based on the information provided to date, we are concerned the proposed changes will further undermine Canada’s ability to attract investment and talent – effectively inhibiting strong and sustained economic growth.

More importantly, we believe the debate over capital gains taxes overshadows an even greater issue of concern – that the government’s fiscal framework is unsustainable. No tax increases would be required if the government reduced its planned spending and took proactive measures to stimulate growth, such as removing regulatory barriers.

We therefore reiterate our call for you to put in place a rigorous program review exercise to identify areas where government expenditures can be reduced or eliminated. In tandem, business leaders are prepared to help develop an economic growth strategy that increases prosperity for all Canadians.

Yours very truly,

Goldy Hyder