Canada’s Building Trades Unions are voicing their support for the federal government’s changes to the capital gains tax inclusion rate, which was previously announced, and will be voted on by the House of Commons this week. The proposed change to the tax code will help fund important programs for the benefit of all Canadian workers including pharmacare, childcare, increased healthcare spending.
“The inclusion rate for our members wages is one hundred percent, taxed as income at the marginal rate, while only half of capital gains are taxed at all. Raising that to two-thirds, and only on capital gains above $250,000 each year, is a step towards tax fairness for people who work for a living,” said Sean Strickland, Executive Director of Canada’s Building Trades Unions, “This change will impact only the wealthiest of Canadians – the 0.1% – they should be contributing their fair share.”
Historically, capital gains inclusion rates have been higher. Capital gains taxes were first introduced in 1972, coupled with the elimination inheritance or ‘death’ taxes at the federal level. At inception, the inclusion rate was 50 per cent. The federal Progressive Conservatives under Brian Mulroney raised the capital gains inclusion rate first to 66.66 per cent in 1988, and then to 75 per cent in 1990. It remained at 75 per cent until 2000, when the Chretien-led Liberal government reduced the inclusion rate back to 50%, where it has remained until now.
