QUESTION PERIOD — Finance
Capital Gains Inclusion Rate
June 13, 2024
Leader, a Nanos poll released earlier this week reports that one in five Canadians know someone who has used a food bank in the last year. Groceries are unaffordable for many fellow Canadians, yet the Trudeau government thinks this is a good time to raise taxes on the farmers who grow the food.
Research released by the Grain Growers of Canada shows the average grain farm will see a tax increase of 30% due to the two‑thirds capital gains inclusion rate. The organization said:
This hike targets farmers’ retirement plans, complicates intergenerational transfers, and threatens the long-term viability of family farms across the country.
Taxing farmers drives up food costs for Canadians, leader. How much more expensive will food become as a direct result of this tax hike?
Thank you for your question. The change in the inclusion rate and the capital gains tax is a broad-based measure that is not restricted to any particular industry. Rather, instead, it seeks to return us to a tax situation that existed previously.
Let us recall, colleagues, that millions of Canadians don’t have any capital gains. They might get a salary. They may be gig workers, and they pay a much higher marginal rate than those of us who are privileged.
This change in the inclusion rate is not expected to have a material impact on food prices or any other measure, just as the price on pollution only has a marginal impact on such costs, because of the true nature of the factors that unfortunately affect rising food costs in this country and around the world.
The Canadian Federation of Agriculture said it was frustrated and disappointed. These are significant tax changes, and they are being rammed through while the farmers are out in the fields planting their crops. That’s a good point, leader. Does anyone in this incompetent Trudeau regime have respect for farmers, leader? Does anyone even understand how they work? Did anyone think to consult these farmers before they implemented this?
The government has respect for farmers and all Canadians who are struggling and working hard for their families. This measure is not being rammed through. This measure was announced in the budget. This matter is before the House of Commons and will be voted on democratically.
