top of page

Capital Gains Tax Exemption

Policy Area

Priority Level

Last Updated

Tax

Immediate

August 30, 2024

The Policy

The RPC will entirely remove the capital gains exemption (i.e., increase the inclusion rate to 100%) - to finally put an end to the unfair two-tier tax system that favours the ultrawealthy - and instead tax all capital gains at the same nominal income tax rate.

Fewer than 1 in 5 Canadians[1] benefit from this highly-inequitable policy, which is unique to Canada - even the USA does not have this exemption.

To offset negative any impact this change might have had on Canadians (e.g., when they sell a cottage, retirement investments, or their small business), we will increase the Lifetime Capital Gains Exemption (LCGE)[2] from the current limit of $1,016,836 to $2,000,000 and expand the scope to include all Canadians; today, it is limited only to qualified farm and fishing property or qualified small business corporation shares. This limit will be tied to the consumer price index (CPI) to ensure it keeps pace with inflation.

By nearly doubling the LCGE we dramatically reduce the number of Canadians affected by the increased inclusion rate. The wealthiest 0.01% of Canadians (approximately 42,000)[3] have an average net worth of over $35 million and will be the only group which is materially impacted by this policy.

The Research

Our Broader Stance on:

Money is one of the most powerful tools humans have ever invented. Like many other tools, originally created for the betterment of society, money has been co-opted by a few ultrawealthy (sometimes referred to as Ultra High Net Worth Individuals (UHNWI)) members of society as a weapon they use to exert control of others.

Given that money is only a representation of value, not value itself, and that society frequently makes changes to our financial and economic systems - we need to reform our taxation system to ensure our money is only the means to our other desired ends, not an end unto itself.

Related Content

bottom of page