The current tax preference for capital gains costs $35 billion annually – with high-income families accruing most of the benefit. The recent passage of Bill C-208 exacerbates these issues. To fix these problems, the inclusion rate for capital gains should rise to 80 per cent from the current 50 per cent. Read this articleWhy won’t Canada increase taxes on capital gains of the wealthiest families?
Part II: The underlying problem is the differential that exists today between personal tax rates on taxable dividends as opposed to capital gains. Read this articleSurplus stripping: We need to fix Canada’s tax rules
The rise of small-business incorporation is suppressing taxable incomes of rich Canadians. The growing gulf between top personal tax rates and the low rates paid by small CCPCs is driving the rise of incorporation. Read this articleAre the rich really getting poorer in Canada?