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Canadian Capital Gains Change Targets Boomers More Than The Rich

Canadian policy makers claim they’re cracking down on the rich, but they know it’s not the case. Budget 2024 will raise the capital gains tax, stating only a small number of the wealthiest taxpayers will be impacted. Statistics Canada (Stat Can) data provided to policymakers shows that’s not the case, impacting 7x the number implied. The vast majority are also less likely to be rich and more likely to be receiving a one-time windfall. In addition, the policy appears to be timed to capture an upcoming surge from the silver tsunami—targeting Boomers in trades and professional services. Most people pictured the Monopoly Man being targeted, not their plumber near-retirement. What gives?

Canada Proposes Raising Capital Gains Inclusion Rate To 66.7% 

Capital gains are profits made on the sale, or deemed sale, of an asset. It can be a business, car, cottage, stocks, etc., if its value is more than when it was acquired, it’s a capital gain. Most policymakers seem to be intentionally branding it as a tax that hits the rich. That’s not the case though, since it’s typically applied to windfalls, such as selling a business in retirement or disposing of inherited property. …[Continue Reading]