A wave of opposition has emerged against the capital gains tax adjustments announced in Canada’s Budget 2024. With the inclusion rate for businesses set to rise to 66.7% and a new threshold for individuals, critics argue these measures could hinder Canada’s position as a competitive tech hub.
Over 150 industry leaders have voiced concerns through an open letter, fearing these tax increases could divert investment and talent to more business-friendly regions like the US. While the government defends the changes as minor, affecting only 0.13% of the population, critics like Ben Bergen from CCI and Michael Serbinis from League suggest the repercussions could be significant for the tech sector. Despite concessions like the increased lifetime capital gains exemption, the discontent among tech leaders is palpable.
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