RE:Troubling Budget HeadlinesAnEducator wrote: Capital Gains taxes are set to increase for certain individuals and companies. I'm not fully versed on the details, but this is certainly not encouraging for Canadian markets.
From the Fraser Institute:
Canada statistics
“However, although GDP in aggregate has been growing, GDP per person (a common indicator of living standards) has been declining at an alarming rate. Since the second quarter of 2022 (when it peaked post-COVID),inflation-adjusted GDP per person has fallen from $60,178 to $58,111 in the fourth quarter of 2023—and has declined during five of those six quarters, and now sits below where it was at the end of 2014.
Labour productivity, which is the amount of output (GDP) produced per hour worked, has seen a similar decline. Statistics Canada recently reported that the fourth quarter of 2023 represented the first time productivity increased since the beginning of 2022, and that for the prior six quarters labour productivity had declined or remained stagnant.
The consequence of both declining GDP per person and lower productivity, as Carolyn Rogers ( Bank of Canada) warned, is a lower standard of living for Canadians. To reverse this crisis, the Trudeau government must address the cause of Canada’s weak economic growth—a severe lack of business investment.”
And the Institute goes on to say:
“Business investment provides the capital needed to equip workers with the technology and equipment to become more efficient and productive. Yet according to a recent study, from 2014 to 2021, inflation-adjusted business investment per worker in Canada fell from $18,363 to $14,687.
This decline in business investment is partly the result of the Trudeau government’s disinterest in encouraging entrepreneurship and private-sector business investment. Indeed, the government’s approach of high spending, more regulation and significant involvement in the economy has done little to foster widespread economic growth.