Confidence vote to be held on Liberal hike to capital gains tax for very wealthy

For the third time in seven days the House of Commons will vote on a confidence measure today, but this one comes from the government itself.

The Liberals have called for a vote on the proposed changes to the capital gains tax that they announced in the spring budget. 

The capital gains inclusion rate was adjusted in June and the motion before the House today will allow the government to introduce the legislation to formalize the changes.

Most Canadians who make more than $250,000 in profits in a single year from capital income like the sale of secondary properties or stock options will now pay more in tax on that income.

The move was widely panned by business groups and doctors, with the government saying it's meant to ensure millionaires aren't paying a smaller tax rate than middle-class income earners.

The parliamentary budget officer says the increase to the capital gains inclusion rate will bring in $17.4 billion in revenue over five years.

This report by The Canadian Press was first published Oct. 2, 2024.