Canadian Prime Minister Justin Trudeau's government has unveiled plans to implement higher taxes for the wealthiest Canadians with the goal of increasing revenue and addressing economic disparities within the country. This tax increase specifically targets the capital gains inclusion rate, which affects the taxable portion of profits made from asset sales, aiming to raise nearly $20 billion Canadian over five years from just 0.1 per cent of the population, those with capital gains above $250,000 Canadian.
Finance Minister Chrystia Freeland defended the tax hike, acknowledging the potential backlash from the wealthy and emphasizing the importance of societal values in building a better Canada. The federal budget, presented by Freeland, promises $53 billion Canadian in new spending with a focus on economic justice, particularly for younger generations facing increased challenges in establishing themselves compared to previous generations.
Despite the government's efforts to address economic disparities and prioritize social justice, the Liberal government under Trudeau is facing a significant decline in popularity as they trail in polls due to concerns over the cost of living in Canada. Political experts like Nelson Wiseman suggest that the budget may not be sufficient to turn around the Liberal government's standing, indicating a potential defeat unless significant changes are made, including the possibility of Trudeau stepping aside for a new leader to take charge.