RE:RE:Looks as if the analysts have had to to review Slightly off topic but in keeping with another remark he made:
The Federal Budget is due out on March 28th in the hands of Chrystia Freeland. He remarked we could expect a way more tax. I can likely agree with him there.
What are the odds she and JT will hit the capital gains tax? Probably push it back to 67%? Hopefully not all the way back to 75% as it was in the 1990's.
Inclusion Rate: The History
The Carter commission took the view that property income should be taxed in full as ordinary income since “preferential rates produce complexity and a lack of neutrality.” The government, however, rejected the view that any increase in economic power, regardless of the source, should be treated the same way for tax purposes. It opted to impose capital gains taxes only on an actual or deemed disposition rather than on a mark-to-market basis, and it decided that, contrary to the recommendations of both the Carter commission report and the 1969 white paper, only 50 percent of capital gains (whether on publicly traded shares or other capital property) would be subject to tax, starting in 1972. To ensure appropriate grandfathering, capital gains accrued before 1972 were exempt by means of a V-day mechanism.
The 50 percent inclusion rate was the result of significant deliberation and compromise. As
Strain, Dodge, and Peters observed, in a 1988 CTF conference report paper on tax simplification:
Strong arguments were advanced that the full taxation of capital gains would inhibit economic growth. The need for an adequate level of capital formation, the desirability of encouraging a continued supply of risk capital, the encouragement of equity investment and healthy capital markets, and the need to adjust for inflation in measuring real capital gains were all seen to be important issues.
"In the 1971
federal budget speech, Finance Minister E.J. Benson found it noteworthy that the 50 percent inclusion rate for capital gains would match the United States’ rate.
The 50 percent inclusion rate remained in place until the late 1980s. On June 18, 1987, Finance Minister Michael Wilson
announced that the rate would increase to 66
2⁄3 percent in 1988 and to 75 percent in 1990. The new reforms, unlike the 1972 reforms, provided no grandfathering for gains accrued under the old regime. The 75 percent inclusion rate continued through the 1990s until February 27, 2000, when it was reduced to 66
2⁄3 percent. In the 2000
fall economic statement, the inclusion rate was further reduced to 50 percent, and that rate has continued to the present day."