The Canadian Federation of Independent Business (CFIB) is urging the federal government to put the brakes on proposed changes to the Capital Gains Tax.
Three major changes were contained in last month’s federal budget when Finance Minister Chrystia Freeland said the implementation date would be June 25th.
CFIB National President Dan Kelly supports boosting the Lifetime Capital Gains Exemption, but has concerns about proposed regulations for the new Canadian Entrepreneurs’ Incentive. He says the new incentive will create winners and losers. The CFIB is lobbying to make all small businesses eligible.
It has the following recommendations for the federal finance minister:
For this package to work, major changes are required. CFIB will be pushing all parties to:
- Protect the increase in the Lifetime Capital Gains Exemption to $1.25 million
- Expand the new Canadian Entrepreneurs’ Incentive to include all entrepreneurs:
- Include all sectors, including farmers and fishers selling assets
- Include non-founders to encourage people to invest in small firms
- Cut the 10-year implementation schedule in half
- Scrap the planned increase in the general inclusion rate to 66.7%. If government is unwilling to abandon this plan, it should:
- Grandfather all existing capital gains using a V-Day (valuation day) as was done in 1971
- Allow corporations to benefit from $250,000 each year at 50% inclusion like individuals
- Allow for 5-year income averaging to benefit from the $250,000 annual threshold for larger capital gains for irregular events, like selling a property
CJWW Agriculture Director Neil Billinger spoke to Kelly on Friday afternoon about a wide range of topics.
