Poilievre says Tories will vote against capital gains tax hike, calls it a 'job killer'
'We're stepping up for Canadians. They're stepping up for the rich,' Trudeau says of Conservatives
Conservative Leader Pierre Poilievre said Tuesday his party will oppose the government's proposed capital gains inclusion rate increase a tax hike that is projected to pull in roughly$19 billion in new revenue.
Weeks after the budget wastabled, Poilievre finally made his positionknown when hestood in the House of Commons to blast the Liberals' plan and their so-called "high tax agenda."
Poilievre's team also released a 15-minute social media video narrated by the leader to explain why the party is taking a stand against a policy that disproportionatelyaffects wealthy people and big corporations.
"Businesses, jobs, doctors and food production will leave Canada," Poilievre says in the video.
The government has tabled legislation to increase the capital gains inclusion rate from one-half to two-thirds on capital gains above $250,000 per year for individuals, and on all capital gains realized by corporations and trusts.
Poilievre said there could be damaging consequencesto the policy.
He claimed the tax increase will worsenthe country's family doctor shortage because itwill levy higher taxes on a physician'sretirement savings possibly driving these doctors to retire now or move their practices abroad.
The Canadian Medical Association has steadfastly opposed the inclusion rate increase, saying the tax hike will makeprimary care worse in a country where6.5 million people already don't have access to a family doctor or nurse practitioner.
Poilievre also said some farmers could be on the hook for higher taxes when they sell a family farm. The Grain Growers of Canada hasestimated the inclusion rate increase will raise the average tax paid by some of its members by 30 per cent.
"This job-killing Trudeau tax will drive billions of dollars of machines, technology, business and paycheques out of our country," Poilievre said, echoing former Liberal finance minister Bill Morneau, who has said the tax hike will discourageinvestment.
Poilievre said some of the richest Canadians can dodge the worst effects of the increase because they've already had two months since the budget was tabled to sell their assets and move money offshore before the measure takeseffect at month's end.
"So, who will pay for this tax? Firstly, people who have one-time sales or disposal of long-term assets, like a grandmother trying to give some of her farmland to her children for homes,"Poilievre said.
As for whether he'd scrap the capital gains tax if elected, Poilievre said he would launch a "tax reform task force" within 60 days of forming a government.
He said that task forcewould be composed of inventors, farmers and workers "but no lobbyists," and woulddesign a program to "lower taxes on work, hiring and making stuff."
He said a government led by him would reduce "the share of taxes paid by the poor and middle class" while at the same time cutting "tax-funded corporate welfare" and "cracking down on overseas tax havens."
Capital gains tax hike about 'fairness': gov't
The capital gains increase has been pitched by the government as a way to restore "fairness" to the tax code by makingwealthy people and big businesses pay more to help fund new social programs like child care, dental care and pharmacare.
The government also has said it needs the extra revenue to help build more homes for younger generations locked out of the housing market.
While the measure will raise large sums of money, the government projects thatthe changes willonly affect 0.13 per cent of Canadians people with an average income of about $1.4 million a year in a given tax year.
Finance Minister Chrystia Freeland separated the capital gains changes from the budget itself to force Poilievre to take a stand on the tax measure.
It's become something of a political wedge issue, with the Liberals trying to get Poilievre to stand against it so they can paint him as a friend of the "ultra wealthy."
Indeed, after Poilievre came outagainst the tax, Trudeau accused Poilievreinquestion period of "defending advantages for the wealthiest Canadians when they sell really profitable investments."
"We're stepping up for Canadians. They're stepping up for the rich," Trudeau said.
Freeland said the Conservatives have been "squiggling and squirming" for weekssince the budget wasreleased, trying to come up with a coherent position on the tax increase.
She said Conservative opposition shows the party's not standing up for working class people.
"The Conservativesare coming out against fairness," Freeland said.
"Canadiansare watching. Canadians are now seeingwhat side the Conservatives are on.The Conservatives are very clearly sayingthey're against fairness, they're in favour of the wealthy lobbyists who advise them."
While it faces opposition from some business groups and professionals, the government's capital gains tax increasehas been praised bysome groups who feelthe wealthy and well-off don't already pay enough in taxes.
"Thetaxbreak on capital gains is grossly unfair for a vast majority of Canadians who depend on their wages to build a life," saidKatrina Miller, the executive director of Canadians forTaxFairness, a group that advocates for a more progressive tax regime.
"This is about everyone paying their fair share back into the communities we all live in. Our economic sustainability depends on maintaining a livable and stable society, and a fairtaxsystem is a critical building block. We applaud the government for taking this important step towards that goal."
In his social media video explaining the party's stance, Poilievresaid he doesn't support policies that could hurtthe economy at a time when Canada'sGDP per capita has slumpedand growth has stagnated.
Poilievre said taxpayers have already paid taxes on the income used to buy an investment and it's unfair to claw more tax back through a higher capital gains inclusion rate when an investment is sold.
He said capital gain taxes are particularly punitive because a capital gain is based on the price of an investment sold now compared to what a person or corporationpaid when they firstbought it.
The initial purchase price is not adjusted for inflation, which means a capital gainsis likea tax on inflation, Poilievre said.
"Given that capital gains are already double taxed and partly inflated away, adding new taxes is unfair," hesaid.
"With this tax hike, Canada's capital gains will be one of the highest in the advanced world so businesses, jobs and money will pour out of our country at an even faster rate," he said.
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