#WednesdaysatHomeLove – Capital gains tax increase delayed

“Capital gains tax increase delayed until 2026, federal government confirms”

Via: CBC.

“Liberals walk back tax hikes by deferring increase until after the next federal election”

“…The federal government confirmed on Friday that it’s reversing course on increases to the capital gains tax first announced in the last federal budget.

The government is delaying the effective date of the increase to Jan. 1, 2026.

After initial reporting from CBC News on Thursday that federal Liberals were considering a pause on collecting the new taxes, Finance Minister Dominic LeBlanc confirmed as much in a post on X, formerly known as Twitter.

‘This deferral will provide certainty to Canadian taxpayers,’ posted LeBlanc.

The delay almost certainly pushes the change until after the next federal election, which could effectively kill the tax increase given that it has been opposed by the Conservative Party.

‘It is a surprise,’ said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), when interviewed on Thursday night. The industry lobby group had opposed the increase to capital gains taxes since they were first announced.

‘But it is welcome news,’ he said…

“But economist Jim Stanford criticized the delay on this policy.

‘It was fair, and it would raise revenue that was needed for important things like affordable housing or dental care or pharmacare,’ said Stanford, director of the Centre for Future Work in Vancouver.

‘The only people who will benefit from the government backtracking on capital gains taxation is a tiny group of corporations and very wealthy investors,’ he said on Thursday, before the change was made official.

If the increase in capital gains were to stay, he said it would be a ‘small’ move toward a more fair tax system.

The proposed increases were unpopular with business groups, including many in the technology and medical sectors…”

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