Business Groups Issue New Open Letter Condemning Capital Gains Changes as ‘Divisive’

The letter to Finance Minister Chrystia Freeland raises concerns about the proposed increase in the capital gains inclusion rate, arguing that the measure is shortsighted and divisive. It suggests that the proposed changes will negatively impact Canada's competitiveness and innovation, ultimately harming future generations. While this proposed measure attempts to provide a solution to Canada's deficit, it is shortsighted and complex, and it shows division at a time when we need a Team Canada approach to economic growth," the letter states. The signatory's express apprehension about the potential consequences of an increasingly convoluted tax system, which they claim is becoming a "complicated web of carve-outs and caveats." They urge the government to move away from "tax-and-spend politics" and consider alternative solutions to address the deficit without hindering the country's long-term economic prospects. By raising these concerns, the letter's authors hope to persuade the federal government to reconsider its proposed tax changes and engage in a more collaborative, holistic approach to fostering economic growth in Canada.