44th Parl. 1st Sess.
June 18, 2024 10:00AM
- Jun/18/24 2:23:39 p.m.
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Mr. Speaker, despite the Conservative leader's partisan attacks, the rise in capital gains inclusion rates is very simple. If Canadians make more than $250,000 in profit from selling investments in a given year, we are asking them to share a little more of those profits with Canadians who need those investments.
Whether it is by investing in housing, whether it is standing up for school food programs or whether it is delivering dental care to seniors, these are investments we are making to support Canadians by asking the wealthiest to pay their fair share.
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- Jun/18/24 2:56:59 p.m.
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Mr. Speaker, as the proud daughter of a farmer, I know the huge contribution farmers make to our country. That is why I am glad that with these tax measures, we are able to increase the lifetime capital gains exemption to $1.25 million for each farmer in Canada.
I also know that farmers are hard-working people. They are on the side of the working people, not on the side of the multi-millionaires, but that is not the side the Conservatives are on.
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- Jun/18/24 2:58:22 p.m.
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Mr. Speaker, the Conservatives are showing not only that they are fake populists, but also that they are populists who cannot do math.
We have been really clear that the new level of capital gains inclusion kicks in only after each individual has made $250,000 in capital gains, and they can do that every single year. That is the reality, and the Conservatives are ashamed of themselves.
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- Jun/18/24 3:02:08 p.m.
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Mr. Speaker, Larry the plumber from Winnipeg told the finance committee this morning that the Liberal change to the capital gains tax is not fair to his generation. He is not wealthy. He does not have a gold-plated public sector pension or a trust fund to fall back on, like the Prime Minister—
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- Jun/18/24 3:02:51 p.m.
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Mr. Speaker, Larry the plumber from Winnipeg told the finance committee this morning that the Liberal change to the capital gains tax is not fair to his generation. He is not wealthy. He does not have a gold-plated public sector pension or a trust fund to fall back on, like the Prime Minister. He worked hard to build a small plumbing company, to save for retirement, for his family, and now, the Prime Minister is pulling the rug out from his retirement plan, penalizing his hard work.
Will the Prime Minister exempt plumbers like Larry from the capital gains increase, yes or no?
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- Jun/18/24 3:06:40 p.m.
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Mr. Speaker, as a proud farmer's daughter, I truly want to reassure my hon. colleague that I often talk with farmers and I respect their work very much.
That is why I am proud to announce that on June 25, we are increasing the lifetime capital gains exemption to $2.5 million for a couple. This is an important measure for farmers in Quebec and Canada.
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- Jun/18/24 3:09:11 p.m.
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Mr. Speaker, yet again, the Conservatives need to work just a little harder, not only on being less hypocritical about support for working Canadians, but also on just getting their facts straight. After this move, the capital gains rate in Canada will be lower than the tax paid in California or in New York City. Furthermore, the METR, Canada's marginal effective tax rate, is the lowest in the G7, and anyone who read the budget would have seen that.
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- Jun/18/24 5:11:50 p.m.
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Madam Speaker, I had the benefit of being in the same finance committee meeting as my hon. colleague this morning where I heard the same evidence about the capital gains inclusion rates. Of course, most of what my hon. colleague has just said in here was simply contradicted by the evidence, including that there is zero evidence that the capital gains inclusion would have any negative effect on job creation in this country.
The member seems to be opposed to raising the capital gains inclusion rate. I am wondering if he can explain why the Mulroney Conservative government raised the capital gains inclusion rate in 1988 from 50% to 66.67%, and then again, in 1990, to 75%. Were the Conservatives wrong about the capital gains inclusion rate then, or are they wrong now?
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- Jun/18/24 5:58:19 p.m.
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Madam Speaker, I am really privileged to serve on the finance committee with my hon. colleague, and I want to thank him for all of his excellent contributions at committee. My question to him is on the capital gains exclusion issue, which is not covered by this bill, but, as he points out, will be in legislation coming to this House soon.
He heard evidence today suggesting that when the Conservatives raised the capital gains inclusion rate in Canada in 1988 and 1990 from 50% to 66.6% to 75%, there was no material effect on investments by businesses. It did not have any negative effect on their investments in machines or equipment. Nor has there been an increase in investments as capital gains have come down since the year 2000. In other words, he heard evidence that there is no real relationship between the capital gains inclusion rate and investments by businesses.
Can the member tell the House what his thoughts were after hearing that evidence?
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- Jun/18/24 6:28:29 p.m.
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Madam Speaker, I think it is important for us to remember some basic facts. The first is that the capital gains exemption for principal residences is maintained in the budget, so Canadians can purchase their own principal residence and sell it tax-free. That remains.
I know that people are worried about how the change might affect gains on the sale of a property such as a rental property or a second home. I think something that is very important to remember is that the $250,000 inclusion rate, which stays the same as it always was, at 50%, can be stacked. That means that if two people, a couple, own a second home or a vacation property and sell it, they can add their $250,000 capital gains inclusion rates together to make it half a million dollars.
I will also take a moment to talk quickly about family farms. They benefit from a lifetime capital gains exemption that is going to be raised in the budget from $1 million to $1.25 million, plus family farms also benefit from the principal residence deduction, which is the value of their house, and 1.24 acres is also totally exempt from capital gains.
There are provisions in the budget that protect family farms, cottages and second residences; therefore I think the people my hon. colleague is concerned about will be well taken care of with the budget.
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- Jun/18/24 7:06:00 p.m.
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Madam Speaker, my question is on the capital gains tax. I am wondering if my colleague from across the way could explain to Canadians why, when the Liberal government makes the decision to have a fairer sense of taxation, the Conservative-Reform party say no, it is a bad idea, yet Brian Mulroney, the former Progressive Conservative prime minister, not only raised it but raised it to a higher level than we are raising it. If the Conservative Party today is arguing that it is going to cause so many problems, what does it think happened when Brian Mulroney, the then Progressive Conservative prime minister, raised it? There seems to be a double standard, and maybe there is not a double standard. Maybe it is because it is really and truly a Conservative-Reform party being given direction from the far right.
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- Jun/18/24 7:07:11 p.m.
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Madam Speaker, my colleague for Winnipeg North has, as usual, a nonsensical question. I was disappointed last week when we were debating the estimates that I was not able to take a question from him.
However, now he is talking about something that happened 40 years ago. I suggest that he perhaps get into his probably government-subsidized DeLorean to go back to the future to today's date.
The member talks about the capital gains tax. This government has increased taxes on Canadians by over $200 billion per year since it took over, yet somehow that $200 billion will not pay for this added little bit it is calling for. It is ridiculous to think that somehow, after raising taxes by $200 billion, now the real secret to success would be to get an extra couple billion from the capital gains. It is clearly not needed if the Liberals were able to raise taxes $200 billion just since they came to power.
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