“Canada Unveils New $20 Bill in Justin Trudeau’s Liberals #Budget2024”
In a significant move outlined in Tuesday’s federal budget announcement, Canadian Prime Minister Justin Trudeau’s administration is instituting higher taxes on the wealthiest individuals in the country.
One of the key proposals in the budget involves an increase in the capital gains inclusion rate, which pertains to the taxable portion of profits earned from asset sales. Specifically, the taxable share of capital gains exceeding $250,000 Canadian (equivalent to US$181,000) would elevate from half to two-thirds. The federal government asserts that this adjustment will impact only 0.1% of Canadians while generating nearly $20 billion Canadian (about US$14.5 billion) in revenue over the span of five years.
Finance Minister Chrystia Freeland addressed potential pushback, acknowledging that nobody enjoys paying additional taxes, particularly those with the means to afford them. However, she urged the country’s wealthiest individuals, including the top 1% and 0.1%, to reflect on the kind of Canada they aspire to inhabit.
Presenting the federal budget, Freeland emphasized its focus on economic justice for younger generations, outlining $53 billion Canadian (approximately US$38 billion) in new spending initiatives.
Despite assertions that the budget is not merely a political maneuver, Freeland acknowledged the challenges faced by Canadians under 40, emphasizing the increased difficulty in establishing oneself compared to previous generations.
The budget sets a cap on the federal deficit at $40 billion Canadian (around US$29 billion), signaling the government’s commitment to fiscal responsibility amid ongoing economic challenges.
Trudeau’s Liberal government faces significant scrutiny and declining popularity in the polls, primarily due to concerns over the cost of living in Canada. Political analysts, such as Nelson Wiseman from the University of Toronto, suggest that the budget’s impact on improving Liberal prospects may be limited, with the party facing potential defeat in upcoming elections. Wiseman even suggests that the Liberals’ best chance lies in a leadership change, indicating the challenging path ahead for the current administration.
