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Poilievre tight-lipped on what party might do with capital gains tax changes

Conservative leader hasn鈥檛 said whether his government would support the measure or not
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Conservative leader Pierre Poilievre delivers a speech at the Canada Building Trades Union conference, Tuesday, April 30, 2024 in Gatineau, Quebec. Poilievre tells business leaders to fight their own battle against a proposed increase to how capital gains are taxed, his office is keeping tight-lipped about how his own party will vote. THE CANADIAN PRESS/Adrian Wyld

Conservative Leader Pierre Poilievre is telling business leaders to fight their own battles when it comes to the Liberals鈥 proposed changes to capital gains taxation.

But even as he characterizes their plan as an 鈥渁ttack,鈥 his office is keeping tight-lipped about whether or not his party will vote in favour of it.

Finance Minister Chrystia Freeland introduced legislation last week to implement the most recent federal budget that did not include one of its marquee announcements.

Instead, the government is expected to table a stand-alone bill to update the tax system so the wealthiest Canadians and businesses pay taxes on a greater share of their profits.

That means each party will have to stake out a clear position by voting yes or no.

Public opinion polls show younger Canadians increasingly support the Conservatives 鈥 a trend Prime Minister Justin Trudeau, who has long relied on voters under 40, is hoping to reverse.

Last month鈥檚 budget focused heavily on tackling housing affordability. Freeland and Trudeau framed the spending plan as being about 鈥済enerational fairness.鈥

Poilievre has said the Conservatives will vote against the budget.

But as he pitches himself as a champion of the working class and the one who best understands cost-of-living anxieties, will he support measures that the government says would only affect the very richest Canadians?

His office won鈥檛 say.

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鈥淐ommon sense Conservatives will vote against Justin Trudeau鈥檚 inflationary budget,鈥 spokesman Sebastian Skamski said in a statement.

鈥淭he legislation you are asking about doesn鈥檛 exist yet due to Justin Trudeau鈥檚 incompetence, so it鈥檚 impossible for us to weigh in on the matter.鈥

Trudeau and his ministers have been travelling around the country touting how the measures will require those who earn profits from the sale of assets to pay more of their 鈥渇air share.鈥

The Liberals propose making two-thirds rather than one-half of capital gains taxable.

The increase to the so-called inclusion rate would apply to all net profits realized by corporations and those above $250,000 for individuals. They would not apply to the sale of a primary residence.

The government calculates the change would create more than $19 billion in tax revenue over the next five years, helping to fund new spending, including on measures meant to spur housing construction.

鈥淚t鈥檚 obvious the Liberals are making up their 鈥榗ornerstone policy鈥 on the fly,鈥 Skamski鈥檚 statement said.

He added that 鈥淭rudeau鈥檚 wealthy friends鈥 won鈥檛 pay a cent more, and 鈥渨orking and middle class Canadians鈥 will be on the hook for Liberal spending.

Poilievre hinted at his own thinking in a recent opinion piece.

He put what he described as the 鈥渁ttack鈥 businesses and entrepreneurs are facing at the feet of corporate leaders themselves, writing that their approach of sucking up to Trudeau鈥檚 Liberals hasn鈥檛 worked.

鈥淭hey had been planning to do nothing except complain and hope their useless and overpaid lobbyists meet Chrystia Freeland or Justin Trudeau to talk some sense into them while the Opposition hounds the government to reverse course,鈥 Poilievre wrote last Friday in the National Post.

鈥淚f you want to stop Trudeau鈥檚 latest tax hikes, don鈥檛 talk to politicians about it, talk to the people.鈥

His comments 鈥 which were heavily circulated by his MPs and other Conservatives on social media 鈥 are in keeping with the populist message Poilievre has been sending to the business community since becoming leader: he will prioritize everyday people, not 鈥渃orporate Canada.鈥

He also warned that that approach will not change should he become prime minister.

Poilievre鈥檚 opinion piece addressed the concerns professional associations and companies are expressing about the proposed capital gains changes.

It said they should raise such issues directly with their patients and employees.

鈥淥bviously, my future government will do exactly the opposite of Trudeau on almost every issue,鈥 he wrote.

Poilievre was asked directly in an interview last week whether a future Poilievre government would repeal or keep the capital gains changes.

He did not specify, saying only that it鈥檚 still a 鈥渉ypothetical鈥 matter.

He argued that hiving off changes to the capital gains taxation regime from the budget implementation bill amounts to a 鈥渇lip-flop鈥 by the Liberals.

And while Poilievre didn鈥檛 lay out what he might do next, he panned the measure as ineffective.

鈥淲hat is clear is that it won鈥檛 affect the rich, because the rich are just selling their assets now before the change takes effect. They鈥檙e moving their money over to tax havens 鈥 they won鈥檛 pay a penny more,鈥 he told Toronto鈥檚 CP24.

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Stephanie Taylor, The Canadian Press

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