Blog by Arnold Shuchat | February 27th, 2017

Readers, I smell a rat.  I smell a capital gains tax rat!

Our Liberal Government which has shown no ability to manage its own finances and is likely to bring in a deficit in the order of $30 billion dollars without a shred of benefit to show for it in terms of employment or economic growth is looking for money.  Specifically YOUR money!

I fully expect that when the new budget is brought out in the coming weeks, that there will be an increase in taxes, a decrease in deductions and tax credits and an omission of anything health related in terms of incentives, other than perhaps more money for medicare.

I expect this government to target the real estate and investment wealth of this country by increasing the capital gains tax to allow 75% of the capital gain to become taxable.   This will be a major financial shock to anybody who has accrued wealth in the financial markets or in real estate. It will retard investment in capital improvements in real estate and venture capital, thwart innovation and stifle capital renewal.  It will slow real estate property upgrades and cause our cities to degrade as investment is directed elsewhere.

I am also beginning to sense that there will be an invasion of the sacrosanct principal residence exemption to enable  the government to share in the profits you have accrued by limiting this exemption with some kind of cap so that it can tax some of your profits away from you.  This cannot be allowed to happen!

Do not accept this. Write to your MP and let them know you object to this direction. Let's push back before this government erodes our Canadian dollar even further, so it will be impossible to get money out and invest elsewhere.  Tell your MP that you do not accept the expropriation of your wealth for the purpose of financing a deficit.

Tell them now before it is too late!!  You can find your MP's contact information here: http://www.parl.gc.ca/Parliamentarians/en/members