OTTAWA, ON: The Canadian Taxpayers Federation is calling on Finance Minister Dominic LeBlanc to immediately cancel the capital gains tax hike following reports that former finance minister Chrystia Freeland no longer supports the increase.

“If even the finance minister who introduced the capital gains tax hike no longer thinks it’s a good idea, then the government shouldn’t force Canadians to pay it,” said Franco Terrazzano, CTF Federal Director. “LeBlanc must step in and immediately put an end to the undemocratic capital gains tax hike.”

Bloomberg reported that “Freeland would drop the Canadian government’s policy of raising the capital gains inclusion rate if she wins the race to replace Justin Trudeau as prime minister.”

Freeland was the finance minister who introduced the capital gains tax hike in Budget 2024. 

A new report from the CD Howe Institute estimates the capital gains tax increase could slash 414,000 jobs and shrink Canada’s GDP by nearly $90 billion.

While a ways and means motion for the increase passed last year, the necessary legislation has yet to be introduced, debated or passed into law.

With Parliament prorogued until March 24, 2025, and all opposition parties pledging to topple the Liberal government, there’s no reasonable probability the legislation will pass before the next federal election. Despite this, the Canada Revenue Agency is pushing ahead with enforcement of the tax hike.

“Conservative Party Leader Pierre Poilievre and Freeland said they would reverse the capital gains tax hike, and Liberal leadership candidates Mark Carney and Karina Gould should also pressure the government to stop this undemocratic tax grab,” Terrazzano said. “LeBlanc must tell the CRA to immediately halt plans to enforce this tax hike, which threatens to undemocratically take billions from Canadians and cripple our economy.”