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Boehlert remains silent about what the conservatives might do regarding the changes to capital gains tax.

Boehlert remains silent about what the conservatives might do regarding the changes to capital gains tax.

By Mounira Magdy

Published: May 5, 2024

Conservative leader Pierre Poilievre is asking business leaders to fight their own battles when it comes to the changes proposed by the Liberals on capital gains tax.

But even as he describes their plan as an "attack," his office remains silent on whether his party will vote for it or not.

Finance Minister Chrystia Freeland introduced legislation last week to implement the latest federal budget, which did not include one of its notable announcements.

Instead, the government is expected to present a standalone bill to update the tax system so that the wealthiest Canadians and corporations pay taxes on a larger share of their profits.

This means that each party will have to take a clear position by voting yes or no.

Polling shows that younger Canadians increasingly support the Conservatives—an trend that Prime Minister Justin Trudeau, who has long relied on voters under 40, hopes to reverse.

Last month's budget focused heavily on addressing housing affordability. Freeland and Trudeau have framed the spending plan as revolving around "intergenerational fairness."

Poilievre stated that the Conservatives will vote against the budget.

But while he portrays himself as a champion of the working class and the person most attuned to cost-of-living concerns, will he support measures that the government says will only affect the wealthiest Canadians? His office won't say.

Government spokesperson Sebastian Skamski said in a statement, "The Conservatives will vote against Justin Trudeau's inflationary budget."

He added, "The legislation you're asking about does not exist yet due to Justin Trudeau's incompetence, so it's impossible for us to give our opinion on it."

Trudeau and his ministers have been traveling across the country to promote how the measures demand those making profits from selling assets to pay more of their "fair share."

The Liberals propose making two-thirds instead of half of capital gains taxable.

The increase in the so-called inclusion rate will apply to all net profits earned by corporations and to those exceeding $250,000 for individuals. It will not apply to the sale of a primary residence.

The government estimates that the change will generate over $19 billion in tax revenue over the next five years, helping to fund new spending, including measures aimed at stimulating housing construction.

Skamski's statement said, "It’s clear that the Liberals are rapidly shaping their core policy."

He added that "Trudeau's wealthy friends" will not pay an extra cent, and that "working Canadians and the middle class" will be in the crosshairs of Liberal spending.

Poilievre hinted at his own thinking in a recently published op-ed.

He laid what he described as the "attack" facing businesses and entrepreneurs at the feet of the corporate leaders themselves, writing that their approach of appeasing Trudeau's Liberals has not succeeded.

Poilievre wrote last Friday in the National Post: "They have been planning to do nothing but complain and hope that the ineffective and greedy lobbyists meet Chrystia Freeland or Justin Trudeau to talk to them rationally while the opposition chases the government to change course."

He added, "If you want to stop Trudeau's latest tax increases, don't talk to politicians about it, talk to the people."

His comments—which have been heavily circulated by his MPs and other Conservatives on social media—align with the populist message Poilievre has been sending to the business community since he became leader: he will prioritize ordinary people, not "Canadian corporations."

He also warned that this approach would not change if he became Prime Minister.

Poilievre's op-ed addressed the concerns raised by professional associations and businesses about the proposed changes to capital gains.

He said they should raise such issues directly with their patients and employees.

He wrote: "It is clear that my future government will do the exact opposite of what Trudeau does on almost every issue."

Poilievre was directly asked in an interview last week whether a future Poilievre government would cancel or keep the capital gains changes.

He did not specify, simply stating that it is still "theoretical."

He said that excluding changes to the capital gains tax system from the budget implementation bill amounts to "flip-flopping" by the Liberals.

And while Poilievre did not clarify what he might do next, he criticized the move as ineffective.

Poilievre told CP24 in Toronto, "The obvious thing is that it won't affect the rich, because the rich are selling their assets now before the change takes effect. They are moving their money to tax havens...and they won't pay a penny more."

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