What Happened?
- The Canadian government, led by Prime Minister Justin Trudeau, has announced plans to increase the capital gains tax rate in its upcoming 2024 budget.
The government also plans to introduce a new digital services tax on global tech companies starting in 2024. - This proposal is aimed at making the tax system more “intergenerationally fair,” according to Trudeau. (The Epoch Times, Al Jazeera)
- The capital gains tax rate is set to rise from the current 50% to 75% of the regular income tax rate. (AP News, Newsmax, The Epoch Times)
- This move is expected to generate an additional $3 billion in revenue annually. (AP News)
- This tax will target large tech firms with global revenues exceeding $1 billion and Canadian revenues exceeding $20 million. (Economic Times of India, Bloomberg, 9to5Mac)
- The tax rate is set at 3% of the companies’ Canadian digital services revenue. (Economic Times of India, Bloomberg, 9to5Mac)
- This measure is expected to generate an additional $500 million in annual revenue. (Economic Times of India, Bloomberg, 9to5Mac)
Reactions to the proposed tax changes: - Some economists have warned that the capital gains tax increase could backfire, potentially discouraging investment and hurting economic growth. (The Epoch Times)
- The U.S. government has previously expressed concerns about Canada’s plans to implement a digital services tax, viewing it as unfairly targeting American tech giants. (Bloomberg)
Sources: - AP News
- Newsmax
- Economic Times of India
- The Epoch Times
- The Epoch Times
- Al Jazeera
- Bloomberg
- 9to5Mac
