OTTAWA, ON: The Canadian Taxpayers Federation will keep fighting to scrap the capital gains tax hike completely after winning a victory forcing the Canada Revenue Agency to pause enforcement this year.

“Taxpayers across Canada forced the Trudeau government to back down from enforcing this illegal and undemocratic capital gains tax hike this year, but the fight will continue until the policy is scrapped completely,” said Franco Terrazzano, CTF Federal Democratic. “This is a huge win for taxpayers who stood up and fought back against a tax grab that would illegally take billions of dollars from Canadians.

“Now the fight will continue until the capital gains tax hike is permanently scrapped.”

Finance Minister Dominic LeBlanc announced that the government is postponing enforcement of the capital gains tax increase from June 25, 2024, to Jan. 1, 2026.

The pause comes just one week after the CTF launched a legal challenge to stop the Canada Revenue Agency from enforcing the tax hike without parliamentary approval. The CTF’s legal application argues that enforcing the tax increase violates the rule of law and is unconstitutional.

A recent C.D. Howe Institute report warns the capital gains tax hike would cost 414,000 jobs and shrink Canada’s GDP by nearly $90 billion.

“This is a win for taxpayers who should never be forced by unelected bureaucrats to pay a tax that was never properly enacted,” said Devin Drover, CTF General Counsel. “Our court fight isn’t over. We will keep pushing to establish a firm precedent: no taxation without representation.”