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Improve competitiveness, end capital gains tax hike immediately

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By Franco Terrazzano 

The Canadian Taxpayers Federation is calling on Finance Minister Dominic LeBlanc to end the capital gains tax hike following Liberal leadership front-runner Mark Carney’s commitment to reverse the tax increase.

“The government’s capital gains tax hike is a big sign telling entrepreneurs to set up shop in other countries before next year,” said Franco Terrazzano, CTF Federal Director. “Every candidate with a shot at becoming prime minister says they will scrap the capital gains tax hike, so LeBlanc needs to end it now.

“Especially with a looming trade war, the easiest way for the government to make Canada’s economy more competitive is by immediately ending the capital gains tax hike.”

LeBlanc announced that the government is postponing enforcement of the capital gains tax increase from June 25, 2024, to Jan. 1, 2026.

Today, Carney announced he would reverse the capital gains tax increase if he becomes prime minister. The other Liberal leadership front-runner, Chrystia Freeland, also promises to reverse the tax increase. Conservative Party Leader Pierre Poilievre says he would reverse the capital gains tax increase.

A recent report from the C.D. Howe Institute shows the capital gains tax hike will result in more than 400,000 fewer jobs and shrink Canada’s GDP by nearly $90 billion.

The Tax Foundation’s 2024 International Tax Competitiveness Index ranked Canada 31st out 38 Organisation for Economic Co-operation and Development countries on individual tax competitiveness, and 26th on business tax competitiveness. Weaknesses of Canada’s tax system include taxing capital gains “well above” the OECD average.

“Canada couldn’t afford the capital gains tax hike before and we definitely can’t afford the $90-billion hole it will blow through Canada’s economy now,” Terrazzano said. “LeBlanc must improve Canada’s competitiveness by ending the capital gains tax hike now.”

The CTF launched a legal challenge to stop the Canada Revenue Agency from enforcing the tax hike without parliamentary approval. The CTF’s legal application argues that enforcing the tax increase violates the rule of law and is unconstitutional.

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2025 Federal Election

MEI-Ipsos poll: 56 per cent of Canadians support increasing access to non-governmental healthcare providers

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  • Most believe private providers can deliver services faster than government-run hospitals

  • 77 per cent of Canadians say their provincial healthcare system is too bureaucratic

Canadians are increasingly in favour of breaking the government monopoly over health care by opening the door to independent providers and cross-border treatments, an MEI-Ipsos poll has revealed.

“Canadians from coast to coast are signalling they want to see more involvement from independent health providers in our health system,” explains Emmanuelle B. Faubert, economist at the MEI. “They understand that universal access doesn’t mean government-run, and that consistent failures to deliver timely care in government hospitals are a feature of the current system.”

Support for independent health care is on the rise, with 56 per cent of respondents in favour of allowing patients to access services provided by independent health entrepreneurs. Only 25 per cent oppose this.

In Quebec, support is especially strong, with 68 per cent endorsing this change.

Favourable views of accessing care through a mixed system are widespread, with three quarters of respondents stating that private entrepreneurs can deliver healthcare services faster than hospitals managed by the government. This is up four percentage points from last year.

Countries like Sweden and France combine universal coverage with independent providers and deliver faster, more accessible care. When informed about how these health systems run, nearly two in three Canadians favour adopting such models.

The poll also finds that 73 per cent of Canadians support allowing patients to receive treatment abroad with provincial coverage, which could help reduce long wait times at home.

Common in the European Union, this “cross-border directive” enabled 450,000 patients to access elective surgeries in 2022, with costs reimbursed as if they had been treated in their home country.

There’s a growing consensus that provincial healthcare systems are overly bureaucratic, with the strongest agreement in Alberta, B.C., and Quebec. The proportion of Canadians holding this view has risen by 16 percentage points since 2020.

Nor do Canadians see more spending as being a solution: over half say the current pace of healthcare spending in their province is unsustainable.

“Governments shouldn’t keep doubling down on what isn’t working. Instead, they should look at what works abroad,” says Ms. Faubert. “Canadians have made it clear they want to shift gears; now it’s up to policymakers to show they’re listening.”

A sample of 1,164 Canadians aged 18 and older was polled between March 24th and March 28th, 2025. The margin of error is ±3.3 percentage points, 19 times out of 20.

The results of the MEI-Ipsos poll are available here.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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2025 Federal Election

POLL: Canadians say industrial carbon tax makes life more expensive

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By Franco Terrazzano

The Canadian Taxpayers Federation released Leger polling showing 70 per cent of Canadians believe businesses pass on most or some of the cost of the industrial carbon tax to consumers. Meanwhile, just nine per cent believe businesses pay most of the cost.

“The poll shows Canadians understand that a carbon tax on business is a carbon tax on Canadians that makes life more expensive,” said Franco Terrazzano, CTF Federal Director. “Only nine per cent of Canadians believe Liberal Leader Mark Carney’s claim that businesses will pay most of the cost of his carbon tax.

“Canadians have a simple question for Carney: How much will your carbon tax cost?”

The federal government currently imposes an industrial carbon tax on oil and gas, steel and fertilizer businesses, among others.

Carney said he would “improve and tighten” the industrial carbon tax and extend the “framework to 2035.” Carney also said that by “changing the carbon tax … We are making the large companies pay for everybody.”

The Leger poll asked Canadians who they think ultimately pays the industrial carbon tax. Results of the poll show:

  • 44 per cent say most of the cost is passed on to consumers
  • 26 per cent say some of the cost is passed on to consumers
  • 9 per cent say businesses pay most of the cost
  • 21 per cent don’t know

Among those decided on the issue, 89 per cent of Canadians say businesses pass on most or some of the cost to consumers.

“Carbon taxes on refineries make gas more expensive, carbon taxes on utilities make home heating more expensive and carbon taxes on fertilizer plants increase costs for farmers and that makes groceries more expensive,” Terrazzano said. “A carbon tax on business will push our entrepreneurs to cut production in Canada and increase production south of the border and that means higher prices and fewer jobs for Canadians.”

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