The Canadian Taxpayers Federation is demanding the Canada Revenue Agency immediately halt enforcement of the proposed capital gains tax hike which is now estimated to kill over 400,000 Canadian jobs, according to the CD Howe Institute.

“Enforcing the capital gains tax hike before it's even law is not only undemocratic overreach by the CRA, but new data reveals it could also destroy over 400,000 Canadian jobs,” said Devin Drover, CTF General Counsel and Atlantic Director. “The solution is simple: the CRA shouldn’t enforce this proposed tax hike that hasn’t been passed into law.”

A new report from the CD Howe Institute reveals that the proposed capital gains tax hike could slash 414,000 jobs and shrink Canada’s GDP by nearly $90 billion, with most of the damage occurring within five years.

This report was completed in response to the Trudeau government’s plan to raise the capital gains inclusion rate for the first time in 25 years. While a ways and means motion for the hike 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 CRA is pushing ahead with enforcement of the tax hike.

“It’s Parliament’s job to approve tax increases before they’re implemented, not the unelected tax collectors,” said Drover. “Canadians deserve better than having their elected representatives treated like a rubberstamp by the prime minister and the CRA.

“The CRA must immediately halt its plans to enforce this unapproved tax hike, which threatens to undemocratically take billions from Canadians and cripple our economy.”