>The analysis comes after a heated debate in the country over the Liberals’ decision to increase the inclusion rate on capital gains, which are profits made on the sale of assets.
>
>Business groups staunchly opposed the increase, arguing that it would be a tax hike on all Canadians, directly or indirectly, because it would hurt innovation and business investment.
>
>But the report’s author, economist Jim Stanford, says his analysis suggests that favourable tax treatment of capital gains disproportionately benefits the wealthy and does not help the economy.
>
>According to his findings, the miscellaneous intermediation sector, which includes venture capital companies and investment banks, as well as the real estate sector, together made 52.6 per cent of all corporate capital gains reported in Canada between 2018 and 2022.
>
>Meanwhile, these sectors shed nearly 5,000 jobs during that time period.
>
>”These two sectors have been irrelevant to job creation in Canada, and they capture over half of all corporate capital gains,” Stanford said in an interview.
>
>The analysis is based on tax filing data from the Canada Revenue Agency as well as data from Statistics Canada.
>
>The report also finds there’s no historical correlation between capital gains taxes and business investment in machinery, equipment and intellectual property.
>
>…
>
>The report says Canadians with an annual income of more than $250,000, representing 1.5 per cent of tax filers, earned 61 per cent of individual capital gains in 2021.
>
>Stanford says high-income earners are not only more likely to report capital gains, but they stand to benefit more than low-income earners from the favourable tax treatment because they have a higher marginal tax rate.
The lack of any correlation between capital gains and productivity indicates that the business groups’ complaints about capital gains and how they might influence business investment and innovation ring hollow. Perhaps it’s time to really look closely at actual policies that will help all Canadians rather than focus on ones that give even more advantages to the wealthy and well-connected.
the_sound_of_a_cork on
So we good to start taxing principal residences?
EDIT: for hose downvoting and furiously making exculpate claims for the PRE below while simultaneously applauding the findings noted in OPs post, you are all hypocrites.
CanadianMorality on
We here at the Canadian Institute of Morality have to say that our plane to widen the gap between lower class and upper class is working like a charm.
We’ve eliminated the middle class all together and now, on to the lowly peons!
SackBrazzo on
Wait till you find out that the oil and gas producing provinces are our least productive provinces (in terms of GDP per Capita) over the last few years.
Nateosis on
Wait, I thought job creators created jobs when they had too much money? Is trickle-down economics a sham?
mage1413 on
Right but this report ignores one thing: What if the sectors didnt have the need to create jobs? They arent obligated to create jobs if they feel they dont need them. Maybe Im wrong
6 Comments
Two key points below:
>The analysis comes after a heated debate in the country over the Liberals’ decision to increase the inclusion rate on capital gains, which are profits made on the sale of assets.
>
>Business groups staunchly opposed the increase, arguing that it would be a tax hike on all Canadians, directly or indirectly, because it would hurt innovation and business investment.
>
>But the report’s author, economist Jim Stanford, says his analysis suggests that favourable tax treatment of capital gains disproportionately benefits the wealthy and does not help the economy.
>
>According to his findings, the miscellaneous intermediation sector, which includes venture capital companies and investment banks, as well as the real estate sector, together made 52.6 per cent of all corporate capital gains reported in Canada between 2018 and 2022.
>
>Meanwhile, these sectors shed nearly 5,000 jobs during that time period.
>
>”These two sectors have been irrelevant to job creation in Canada, and they capture over half of all corporate capital gains,” Stanford said in an interview.
>
>The analysis is based on tax filing data from the Canada Revenue Agency as well as data from Statistics Canada.
>
>The report also finds there’s no historical correlation between capital gains taxes and business investment in machinery, equipment and intellectual property.
>
>…
>
>The report says Canadians with an annual income of more than $250,000, representing 1.5 per cent of tax filers, earned 61 per cent of individual capital gains in 2021.
>
>Stanford says high-income earners are not only more likely to report capital gains, but they stand to benefit more than low-income earners from the favourable tax treatment because they have a higher marginal tax rate.
The lack of any correlation between capital gains and productivity indicates that the business groups’ complaints about capital gains and how they might influence business investment and innovation ring hollow. Perhaps it’s time to really look closely at actual policies that will help all Canadians rather than focus on ones that give even more advantages to the wealthy and well-connected.
So we good to start taxing principal residences?
EDIT: for hose downvoting and furiously making exculpate claims for the PRE below while simultaneously applauding the findings noted in OPs post, you are all hypocrites.
We here at the Canadian Institute of Morality have to say that our plane to widen the gap between lower class and upper class is working like a charm.
We’ve eliminated the middle class all together and now, on to the lowly peons!
Wait till you find out that the oil and gas producing provinces are our least productive provinces (in terms of GDP per Capita) over the last few years.
Wait, I thought job creators created jobs when they had too much money? Is trickle-down economics a sham?
Right but this report ignores one thing: What if the sectors didnt have the need to create jobs? They arent obligated to create jobs if they feel they dont need them. Maybe Im wrong